Metropolitan Park District v. Olympia Athletic Club, Inc.

254 P.2d 475, 42 Wash. 2d 179, 1953 Wash. LEXIS 429
CourtWashington Supreme Court
DecidedMarch 5, 1953
Docket32247
StatusPublished
Cited by9 cases

This text of 254 P.2d 475 (Metropolitan Park District v. Olympia Athletic Club, Inc.) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Metropolitan Park District v. Olympia Athletic Club, Inc., 254 P.2d 475, 42 Wash. 2d 179, 1953 Wash. LEXIS 429 (Wash. 1953).

Opinions

Finley, J.

The plaintiff park district rented bleacher seats to the defendants for use by the latter in connection with professional wrestling exhibitions. The bleachers, apparently through no negligence of the defendants, were [180]*180destroyed by fire. The contract of bailment between the parties was evidenced by a letter, written by the defendants to the plaintiff, in confirmation of the rental agreement between the parties.

Plaintiff sued the defendants to recover the value of the bleachers. The latter interposed a demurrer. It was sustained by the trial court, and plaintiff’s complaint was dismissed with prejudice.

The question to be decided here is whether the defendants, under their letter of confirmation as set forth in plaintiff’s complaint, became insurers and subject to an absolute liability for the destruction of the bleachers.

The defendants’ letter of confirmation reads, in part, as follows:

“This will confirm our conversation regarding bleachers to be used at the Olympic Sports Center by the Olympic Athletic Club. It was agreed that Charlie Funk would install the bleachers and instruct the men who will handle them from now on in correct proceedure in erecting and taking down. We also agree to use every possible care in handling them and to replace any parts damaged while in our possession and to return them in the same condition in which we received them. We have checked with our insurance company and our liability covers the new location as well as where we formerly showed. We are insured in the Hartford Accident and Indemnity Co. through Walter Draham and Co. in Olympia.” (Italics ours.)

The general rule is that the intention of the parties, ascertained from the wording of the contract, the subject matter of the bailment, and the circumstances of the parties, is controlling and determines whether an absolute contractual liability has been assumed. 6 Am. Jur. (Rev. ed.) 165, 299, § 182.

If the subject matter of the bailment' is destroyed without fault or negligence on the part of the bailee, any liability on his part for the loss must arise out of the contract of the parties and the relationships established thereby. In other words, in the absence of negligence, any recovery by the bailor must be founded upon contract. Of course, when a bailee is negligent, a bailor may seek recovery in a [181]*181tort action; however, no such question is involved in the instant case.

When personal property is destroyed, the loss must fall somewhere. It is where property is destroyed when in the possession and under the control of a bailee that some confusion in thinking, feelings, or emotions may arise. But if thinking be pin-pointed along legal lines in terms of the possible legal relationships of the parties to a bailment, only two questions need be answered: (a) Was the bailee negligent? (b) Was there a contractual duty or responsibility on the part of the bailee?

In view of the foregoing, our problem seems quite simple. All we have to determine is whether or not the bailee contracted to become an insurer as to the bailed property. But, with the stating of this problem, trouble arises immediately. In entering into an agreement, the parties used certain language. We have a problem, and a real one, in determining the meaning of the language used. Where the phrases, “in good condition,” or “in as good condition as when received,” or similar expressions, have been used in contracts of bailment, the decisions of other jurisdictions are in disagreement as to the meaning and effect of the indicated language. In 150 A. L. R. 277, it is said:

“There is a conflict in the authorities as to whether an express undertaking by a hirer of personal property to return the same ‘in good condition,’ ‘in as good condition as received,’ or undertakings of similar import, bind him absolutely as to the redelivery, or whether such redelivery is excused by act of God, inevitable accident, or other injurious acts occurring without his negligence. Both groups of decisions, those which hold the bailee’s liability to be the same as under the common law and those which hold that his liability has become absolute by his express promise to return the bailed property in a specified condition, base their conclusions on exactly the same ground, namely, the alleged intention of the parties to the contract of bailment. Unfortunately, a close analysis of the cases as to the particular wording of the contract involved, the surrounding circumstances, and the subject of the bailment in each particular case does not disclose any distinction which would explain, much less warrant, the differences in the results.”

[182]*182In the case at bar, the letter of the bailee, supposedly confirming the agreement between the parties, employs the phrase, “in the same condition as we received them.” Unquestionably, there is a conflict in the authorities as to the meaning and effect of this phrase when used in a bailment contract. In 150 A. L. R. 280, the annotator states that the language in question has been held to create no absolute or insurer’s liability; however, the annotator proceeds, by saying:

“But the opposite result has been reached in the following cases, which stand for the rule that the promise of the bailee to return the subject of the bailment to the bailor ‘in good condition,’ or ‘in as good condition as received,’ indicates a sufficient intention of .the parties to enlarge the bailee’s common-law liability to that of an insurer, [citing cases]” (Italics ours.)

In the case at bar, we are not faced with the problem, solely, of whether the use of the particular phrase, “in the same condition as we received them,” amounted to a covenant of absolute liability, or insurance, because the bailee’s letter of confirmation, in addition to stating that the bleacher seats would be returned “in the same condition as we received them,” stated, “We also agree to use every possible care in handling them and to replace any parts damaged while in our possession.” The letter further stated:

“We have checked with our insurance company and our liability covers the new location as well as where we formerly showed. We are insured in the Hartford Accident and Indemnity Co. through Walter Draham and Co. in Olympia.”

With reference to a provision in a rental contract that a boat would be returned “in as good condition as she was-when plaintiff delivered her to the company,” the court, in Direct Nav. Co. v. Davidson, 32 Tex. Civ. App, 492, 74 S. W. 790, said:

“If the contract was as alleged by plaintiff, it differed materially from an ordinary contract of bailment, and the rights and obligations of the parties are to be determined by the special contract, and are not such as the law would raise and impose in the absence of an express agreement.”

[183]*183The court further said:

“If the contract was such as was alleged and testified to by plaintiff, then defendant’s obligation to return the boat to him in as good condition as when received was absolute, and could not be avoided by the act of God, the public enemy, or any vis major.”

In Laughren v. Barnard, 115 Minn. 276, 132 N. W. 301, a team of horses had been rented under an agreement “to be returned as received, or as good.” Discussing the question of absolute or an insurer’s liability, the Minnesota supreme court said:

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Metropolitan Park District v. Olympia Athletic Club, Inc.
254 P.2d 475 (Washington Supreme Court, 1953)

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Bluebook (online)
254 P.2d 475, 42 Wash. 2d 179, 1953 Wash. LEXIS 429, Counsel Stack Legal Research, https://law.counselstack.com/opinion/metropolitan-park-district-v-olympia-athletic-club-inc-wash-1953.