Kirby v. Chicago City Bank & Trust Co.

403 N.E.2d 720, 82 Ill. App. 3d 1113, 38 Ill. Dec. 489, 1980 Ill. App. LEXIS 2654
CourtAppellate Court of Illinois
DecidedApril 9, 1980
Docket78-1483
StatusPublished
Cited by17 cases

This text of 403 N.E.2d 720 (Kirby v. Chicago City Bank & Trust Co.) 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
Kirby v. Chicago City Bank & Trust Co., 403 N.E.2d 720, 82 Ill. App. 3d 1113, 38 Ill. Dec. 489, 1980 Ill. App. LEXIS 2654 (Ill. Ct. App. 1980).

Opinion

Miss PRESIDING JUSTICE McGILLICUDDY

delivered the opinion of the court:

This action was brought by Jack Kirby, plaintiff, against the Chicago City Bank and Trust Company, defendant, to recover damages resulting from the defendant’s breach of an alleged bailment agreement. The plaintiff’s original, first, second and third amended complaints were stricken pursuant to the defendant’s motion to dismiss for failure to state a cause of action. The plaintiff elected to stand on his third amended complaint and presented a motion to vacate the order dismissing his third amended complaint. The Circuit Court of Cook County denied the plaintiff’s motion, discharged the defendant and dismissed the plaintiff’s lawsuit. The plaintiff appeals from this order.

The sole issue presented for review is whether the plaintiff’s third amended complaint stated a cause of action upon which relief could be granted.

Count I of the plaintiff’s third amended complaint alleged the creation of a bailment for the mutual benefit of the parties. The relevant portions of that count are as follows:

“1. That the Defendant, Chicago City Bank & Trust Co., is a banking institution engaged in the business of providing banking services to the general public for a profit, and one of the services rendered by the Defendant is the safe keeping of documents and notes for bank customers.

2. That the defendant [sic] was a customer of Chicago City Bank & Trust Company, and Plaintiff did conduct numerous business transactions at the Defendant institution; the Defendant receiving fees and profits from the business transaction by Plaintiff at the Defendant institution.

3. That the Plaintiff did have in his possession, a bearer note in the original sum of $215,000.00 and that the Plaintiff did, on or about January 11,1968, forward said note to the Defendant for safe keeping ” 0 6

4. That upon the deposit of the note with the Defendant, there did arise a mutual bailment for the benefit of both parties, and the Defendant did owe a duty of care to the Plaintiff to exercise ordinary and reasonable care for the safe keeping of said note.

5. That Defendant negligently failed to safely and securely keep said article; and, by reason of such negligency [sic], said note was lost. # # #

7. Demand was made on the Defendant for delivery of said note; however, said Defendant insisted at that time and persists that it does not have possession of said note although Plaintiff does again affirmatively state that delivery was made to the Defendant of the note on or about January 11, 1968.”

Count II of the third amended complaint alleged the creation of a bailment for the sole benefit of the plaintiff. Paragraphs 1 through 8 were restated and realleged with the exception of paragraph 4, which stated:

“4 That upon the deposit of the note with the Defendant there did arise a bailment for the sole benefit of the Plaintiff and the Defendant did owe a duty of slight care, including the duty to return the subject note upon request to the Plaintiff.”

The defendant contends that the plaintiff’s third amended complaint failed to state a cause of action since it did not allege the necessary elements to create a bailment and to establish its breach.

Section 31 of the Civil Practice Act (Ill. Rev. Stat. 1977, ch. 110, par. 31) requires that pleadings contain substantial averments of fact necessary to state a cause of action. A motion to dismiss admits as true all properly pleaded allegations and well-pleaded facts, whereas conclusions of law or conclusions of fact unsupported by allegations of specific facts are never admitted by a motion to dismiss. (Pollack v. Marathon Oil Co. (1976), 34 Ill. App. 3d 861, 341 N.E.2d 101. See Pennington v. Jones (1977), 46 Ill. App. 3d 65, 360 N.E .2d 566.) Although pleadings should be liberally construed in order to effectuate substantial justice between the parties (Ill. Rev. Stat. 1977, ch. 110, par. 33), liberal construction cannot supply fatal deficiencies, such as the necessary factual allegations. Fanning v. LeMay (1967), 38 Ill. 2d 209, 230 N.E.2d 182; Pollack; Yarc v. American Hospital Supply Corp. (1974), 17 Ill. App. 3d 667, 307 N.E.2d 749.

A bailment is “the delivery of goods for some purpose, upon a contract, express or implied, that after the purpose has been fulfilled they shall be re-delivered to the bailor, or otherwise dealt with according to his directions, or kept till he reclaims them.” (Knapp, Stout & Co. v. McCaffrey (1899), 178 Ill. 107, 52 N.E. 898, aff’d (1900), 177 U.S. 638, 44 L. Ed. 921, 20 S. Ct. 824.) Among the necessary elements of a bailment are an agreement by the bailor to transfer or deliver and the bailee to accept exclusive possession of goods for a specified purpose, the actual delivery or transfer of exclusive possession of the property of the bailor to the bailee, and acceptance of exclusive possession by the bailee. (See T. R. Booth & Co. v. Loy (1968), 100 Ill. App. 2d 333, 241 N.E.2d 315.) In addition, where a bailment for the mutual benefit of the parties is alleged, the plaintiff is required to allege the existence of consideration. See Miles v. International Hotel Co. (1919), 289 Ill. 320, 124 N.E. 599.

A bailment is a consensual relationship (St. Paul Fire & Marine Insurance Co. v. Chicago Union Station Co. (7th Cir. 1958), 253 F.2d 441, cert. denied (1958), 358 U.S. 830, 3 L. Ed. 2d 68, 79 S. Ct. 49) that can be established by express contract or implication (Berglund v. Roosevelt University (1974), 18 Ill. App. 3d 842, 310 N.E.2d 773). An implied-in-fact bailment is determined by the surrounding facts such as benefits received by the parties, the parties’ intentions, the kind of property involved and the opportunity of each party to exercise control over the property. Berglund.

Count I of the plaintiff’s third amended complaint stated that a bailment existed for the mutual benefit of the plaintiff and the defendant. However, this count did not allege an express bailment agreement, nor was one implied from the facts set forth in the complaint. The plaintiff argues on appeal that his third amended complaint set forth sufficient allegations to establish a bailor-bailee relationship through allegations of delivery of the note, an actual change of possession, and the bailee’s acceptance of the note when it was deposited with the bailee bank. Although the plaintiff’s complaint alleged delivery of the note to the defendant on or about January 11,1968, nowhere in the complaint do we find an allegation concerning a change in possession of the note.

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Cite This Page — Counsel Stack

Bluebook (online)
403 N.E.2d 720, 82 Ill. App. 3d 1113, 38 Ill. Dec. 489, 1980 Ill. App. LEXIS 2654, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kirby-v-chicago-city-bank-trust-co-illappct-1980.