American Ambassador Casualty Co. v. City of Chicago

563 N.E.2d 882, 205 Ill. App. 3d 879, 150 Ill. Dec. 755, 1990 Ill. App. LEXIS 1656
CourtAppellate Court of Illinois
DecidedOctober 26, 1990
Docket1-90-0343
StatusPublished
Cited by39 cases

This text of 563 N.E.2d 882 (American Ambassador Casualty Co. v. City of Chicago) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Ambassador Casualty Co. v. City of Chicago, 563 N.E.2d 882, 205 Ill. App. 3d 879, 150 Ill. Dec. 755, 1990 Ill. App. LEXIS 1656 (Ill. Ct. App. 1990).

Opinion

PRESIDING JUSTICE LaPORTA

delivered the opinion of the court:

The subject of this appeal is the dismissal with prejudice of plaintiff’s complaint which sought recovery from defendant of $10,552, the amount paid by plaintiff to its insured for the loss of the insured’s automobile. The trial court granted defendant’s motion to dismiss which asserted that defendant was immune from suit under the Local Governmental and Governmental Employees Tort Immunity Act (Tort Immunity Act) (Ill. Rev. Stat. 1987, ch. 85, par. 4 — 102). Plaintiff appeals, asserting that (1) defendant was liable under a bailment theory, (2) the Tort Immunity Act was inapplicable, and (3) even if the Tort Immunity Act was applicable, defendant was liable for breach of its special duty owed to plaintiff’s insured.

Plaintiff, American Ambassador Casualty Company, as subrogee of its insured, Bruce Anderson, brought this action against defendant, the City of Chicago, seeking recovery of $10,552.50, the amount paid to Anderson for the loss of his vehicle. The complaint alleged that Anderson’s vehicle was insured by plaintiff against loss by theft under an automobile policy providing comprehensive coverage. Plaintiff asserted further that defendant impounded Anderson’s automobile after the driver of the vehicle, not Anderson, was arrested on December 22, 1988, and although Anderson demanded the return of his vehicle, defendant was unable or unwilling to return it. The automobile was reported stolen on January 26, 1989, by Chicago police officer [Raymond] Pellegrini. Plaintiff sought a judgment from defendant for the $10,052 paid to Anderson, plus the $500 deductible under the insurance policy.

Defendant filed a motion to dismiss the complaint, asserting that it was immune from suit under the Tort Immunity Act (111. Rev. Stat. 1987, ch. 85, par. 4 — 102). Plaintiff responded to defendant’s motion, asserting that defendant was liable under a bailment theory or, in the alternative, for breach of the special duty owed to plaintiff’s insured. Defendant replied, arguing that no bailment relationship had been shown, that the Tort Immunity Act was applicable, and that plaintiff had alleged insufficient facts to establish a special duty owed to plaintiff’s insured. The trial court granted defendant’s motion and dismissed plaintiff’s complaint with prejudice.

We initially consider whether plaintiff’s complaint adequately set forth a claim under a bailment theory.

A bailment is the delivery of property for some purpose upon a contract, express or implied, that after the purpose has been ful.filled, the property shall be redelivered to the bailor, or otherwise dealt with according to his directions, or kept until he reclaims it. (Kirby v. Chicago City Bank & Trust Co. (1980), 82 Ill. App. 3d 1113, 1116, 403 N.E.2d 720, 723.) In order to properly plead the existence of and the right to recover under a bailment theory, the following elements must be alleged: an agreement, express or implied, to create a bailment; delivery of the property in good condition; acceptance of the property bailed by the bailee; and nonreturn or redelivery of the property in a damaged condition. Mueller v. Soffer (1987), 160 Ill. App. 3d 699, 704, 513 N.E.2d 1198, 1201; Robinson v. St. Clair County (1986), 144 Ill. App. 3d 118, 120, 493 N.E.2d 1154, 1155; Wright v. Autohaus Fortense, Inc. (1984), 129 Ill. App. 3d 422, 424-25, 472 N.E.2d 593, 595.

The complaint alleged that defendant impounded the subject automobile after the driver was arrested on December 22, 1988, and although plaintiffs insured demanded the return of his vehicle, defendant was unable or unwilling to return it. A police officer ultimately reported the automobile stolen on January 26, 1989. Defendant did not file an answer denying these assertions, and its motion to dismiss admitted all well-pleaded facts. Petrauskas v. Wexenthaller Realty Management, Inc. (1989), 186 Ill. App. 3d 820, 825, 542 N.E.2d 902, 905.

On this record, it is undisputed that the automobile of the plaintiffs insured was actually transferred to and accepted by defendant when the vehicle was impounded by the police department at the time of the driver's arrest. It is also undisputed that the vehicle was never returned to the plaintiff’s insured and the defendant exercised exclusive control over the vehicle from the time it was impounded until it was stolen from the police department’s lot.

Defendant argues that plaintiff cannot recover under a bailment theory because it has not established an agreement by its insured and the police department to create a bailment. It has been held, however, that a bailment is a consensual relationship that can be established by express contract or by implication (Kirby, 82 Ill. App. 3d at 1116, 403 N.E.2d at 723; Berglund v. Roosevelt University (1974), 18 Ill. App. 3d 842, 844, 310 N.E.2d 773, 776), and the agreement of the parties to a bailment may be implied in law or in fact (Robinson, 144 Ill. App. 3d at 120, 493 N.E.2d at 1155; Berglund, 18 Ill. App. 3d at 844, 310 N.E.2d at 776; Chesterfield Sewer & Water, Inc. v. Citizens Insurance Co. (1965), 57 Ill. App. 2d 90, 94-95, 207 N.E.2d 84, 86).

A constructive bailment, or a bailment implied in law, may be found where the property of one person is voluntarily received by another for some purpose other than that of obtaining ownership. (Chesterfield, 57 Ill. App. 2d at 93, 207 N.E.2d at 86.) In such cases, the law implies a contract for the keeping of the property until it shall be restored to the owner or his agent, and the contract implied is that of a depositary. Thus, the duty of a depositary is imposed without any actual contract for that purpose. (Chesterfield, 57 Ill. App. 2d at 93, 207 N.E.2d at 86.) The holder is bound to take care of, keep, and preserve the property, not for the sake of any benefit to himself or upon any expectation of compensation for his services, but solely for the convenience and accommodation of the owner. Chesterfield, 57 Ill. App. 2d at 93, 207 N.E.2d at 86.

The court noted in Chesterfield that

“ ‘[w]here, otherwise than by mutual contract of bailment, one person has lawfully acquired the possession of personal property of another and holds it under circumstances whereby he ought, upon principles of justice, to keep it safely and restore it or deliver it to the owner, such person and the owner of the property are, by operation of law, generally treated as bailee and bailor under a contract of bailment, irrespective of whether or not there has been any mutual assent, expressed or implied, to such relationship.’ ” Chesterfield, 57 Ill. App. 2d at 94, 207 N.E.2d at 86, quoting Woodson v. Hare (1943), 244 Ala. 301, 303-04, 13 So. 2d 172

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Bluebook (online)
563 N.E.2d 882, 205 Ill. App. 3d 879, 150 Ill. Dec. 755, 1990 Ill. App. LEXIS 1656, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-ambassador-casualty-co-v-city-of-chicago-illappct-1990.