Opinion by
{ 1 This case arises from a fire at Colorado State University's Equine Reproduction Laboratory (the Lab) that destroyed plaintiff Heather Foster's property. Defendant, the Board of Governors of the Colorado State University System (CSU),
I. Background
T2 Ms. Foster and the Lab agreed orally that the Lab would provide reproductive treatment to Ms. Foster's prize-winning stallion. Pursuant to that agreement, the Lab collected ten "straws" of semen from the stallion to be used for in vitro fertilization, and Ms. Foster and the Lab entered into a bailment relationship, pursuant to which the Lab (the bailee) stored the straws in its specialized storage facility, and Ms. Foster (the bailor) paid the Lab a monthly fee.
T3 Less than two years later, a fire destroyed the Lab and most of its contents, including the semen straws from Ms. Foster's stallion. The fire department investigated the fire but was not able to determine its cause.
T4 Ms. Foster sued the Lab, asserting a claim for breach of an oral contract for bailment. CSU moved to dismiss the complaint pursuant to C.R.C.P. 12(b)(1) based on lack of subject matter jurisdiction under the
15 After hearing arguments on the motion, the district court determined that the facts material to whether Ms. Foster's claim lies in tort or could lie in tort for purposes of the CGIA are not in dispute. therefore concluded that an evidentiary hearing was unnecessary. The court
T6 The court subsequently issued a written order denying CSU's motion to dismiss. The court disagreed with CSU's assertion that Colorado courts have determined bailment claims to be tort claims, saying that "[the fact that courts use language of negli-genee when addressing bailments is not dis-positive of whether a breach of duty under a bailment sounds in tort." Rather, the court found "as a matter of law that the relationship between these parties is based solely on an oral contract for storage in exchange for payment by [Ms. Foster]." The nature of CSU's liability (if any), the court reasoned, must therefore arise from that contract.
T7 The court was also not persuaded that Ms. Foster's claim could lie in tort because it found "no indication that [she] could prevail on any tort claim given the allegations in her complaint." The court reasoned that because Ms. Foster sought only economic damages and the Lab had not allegedly breached an independent duty of care, any potential tort claim Ms. Foster might bring would be precluded by the economic loss rule. Having concluded that Ms. Foster's claim does not and could not lie in tort, it ruled that Ms. Foster had established that CSU does not enjoy immunity under the CGIA.
T8 CSU appeals pursuant to section 24-10-108. |
II. Discussion
T 9 The sole issue on appeal is whether Ms. Foster's claim for damages for the destruction of her bailed property lies in tort or could lie in tort for purposes of the CGIA. We conclude that it does lie in tort, or that it eould lie in tort.
A. Standard of Review
The applicability of immunity under the CGIA is an issue of subject matter jurisdiction to be determined by the district court in accordance with C.R.C.P. 12(b)(1). Fogg v. Macaluso,
B. Applicable Law
1. CGIA Immunity
1 11 Subsection 24-10-106(1) of the CGIA provides: "[a] public entity shall be immune from liability in all claims for injury which lie in tort or could lie in tort regardless of whether that may be the type of action or the form of relief chosen by the claimant except as provided otherwise in this section."
112 The CGIA immunity provision does not apply to claims for breach of contract. Berg v. State Bd. of Agric.,
113 Because the meanings of "tort" and "could lie in tort" are vague, the inquiry into whether a public entity is immune under the CGIA is often difficult. City of Colo. Springs v. Conners,
{14 "The essential difference between a tort obligation and a contract obligation is the source of the parties' duties." Carothers v. Archuleta Cnty. Sheriff
{ 15 Colorado cases construing the CGIA immunity provision have established the following principles with regard to when it applies:
eThere is immunity if the claim arises from a breach of a general duty of care, as distinguished from a breach of a contract or other agreement. Brown Grp. Retail,182 P.3d at 690 ; see Robinson,179 P.3d at 1005 .
e There is immunity if a claim could sue-ceed only upon establishment of liability . for tortious conduct. Brown Grp. Retail,182 P.3d at 691 ; Adams,140 P.3d at 10 ; see Robinson,179 P.3d at 1005 .
® It is only where the claim cannot lie in tort that there is no immunity. See Berg,919 P.2d at 258 .
e Thus, even if a claim exists for breach of contract, it is barred if the allegations in the complaint would also support a tort claith; the claim is not barred only if it arises "solely in contract." Robinson,179 P.3d at 1004-05 .
2. The Nature of a Bailment Claim
116 The supreme court has described a bailment as "a delivery of personal property by one person to another in trust for a specific purpose, with an express or implied contract that the property will be returned or accounted for when the specific purpose has been accomplished or when the bailor reclaims the property." Christensen v. Hoover,
117 Despite frequent historical references to bailments using contract law terminology, no contract is necessary to create a bailment; one may be created constructively by operation of law. Christensen,
"Onee a bailment relationship has been established, the law imposes upon the bailee certain duties and obligations with respect to the bailed property in [its] possession." Christensen,
{19 But a bailee is not an insurer; rather, its liability for breach of this duty depends on whether it breached the duty of reasonable care-that is, was negligent. See Lynch v. Union Pac. R.R. Co.,
€20 Where goods have been damaged or destroyed while in the possession of a bailee, the bailor may bring a claim for breach of contract or may bring a tort claim (for negligence or, perhaps, for conversion). See, e.g., Rajkovich v. Alfred Mossner Co.,
C. Analysis
%T21 For purposes of our analysis, we need not determine whether all bailment claims are or could be tort claims. We must determine only whether Ms. Foster's claim lies in tort or could lie in tort for purposes of the CGIA.
1 22 Neither the fact that Ms. Foster pled her bailment claim as one for breach of contract nor the fact that a bailment claim may be so pled is dispositive. See Robinson,
1123 First, though Ms. Foster has phrased her claim as one for breach of contract, CSU's liability for damage to the bailed goods would depend on proof of negligence. See, e.g., Christensen,
124 Second, the duty CSU allegedly breached is one implied by law-a duty to act with reasonable care-not one that arises from promises made between the parties. See Christensen,
125 Third, as discussed, an action against a bailee for damage to or destruction of bailed property can be pled alternatively in contract or in tort. See, e.g., Inst. of London Underwriters v. Eagle Boats, Ltd.,
{26 The supreme court's decision in City & Cnty. of Denver v. Desert Truck Sales, Inc.,
T27 The only Colorado case which Ms. Foster cites for the proposition that a claim for damage to bailed property is a purely contractual claim-Spaur v. City of Greeley,
128 Finally, though the parties devote substantial discussion in their briefs to the economie loss rule, we conclude that the economic loss rule has no bearing on this case. The economic loss rule provides that "a party suffering only economic loss from the breach of an express or implied contractual duty may not assert a tort claim for such a breach absent an independent duty of care under tort law." Town of Alma,
III. Conelusion
{29 Because we conclude that Ms. Foster's claim for the destruction of her bailed property lies in tort or could lie in tort, it is barred by the CGIA, unless an exception to
Notes
. Ms. Foster's complaint named the Lab as the defendant. CSU filed a motion to dismiss asserting that the Lab is not an independent entity that can sue or be sued, and that the proper defendant is the "Board of Governors of the Colorado State University System, by and on behalf of the Colorado State University." Ms. Foster concedes the misnomer in her answer brief filed in this appeal, indicating that the parties have agreed to amend the caption after resolution of this appeal. Given the parties' agreement as to the proper defendant, however, we see no need to wait, and therefore we substitute the Board of Governors for the Lab as the named appellant.
. Indeed, some authorities define "bailment" not in contractual terms, but simply as the rightful possession of goods by one who is not the owner. See, e.g., 19 Richard A. Lord, Williston on Contracts § 53:1, at 5 (4th ed.2001); 8 C.J.S. Bailments § 1; see also Ray Andrews Brown, The Law of Personal Property § 10.1, at 210 (3d ed. 1975) (because many bailments lack the formal elements of a contract, "[the broader definition of Professor Williston is preferable").
. A bailee will be held liable only for its negligence, even where the bailed property was destroyed by a fire. See 8 C.J.S. Bailments § 69 ("If a loss by fire is such a danger to the property as should have been foreseen by a person of ordinary prudence, then it is the duty of the bailee to exercise such precautions to prevent a fire as ordinary care requires.").
. The presumption of a bailee's negligence is essentially an application of the doctrine of res ipsa loquitur. See Motor Crane Serv. Co. v. Barker Constr. Co.,
. We also note that, in certain cases, as with a claim for breach of the duty of good faith and fair dealing in the insurance context, the breach of an implied contractual obligation may give rise to a tort claim. See, e.g., Lira v. Shelter Ins. Co.,
. Ms. Foster contends that because a claim for destruction of bailed property may be pursued under a contract theory or a tort theory, her claim for breach of contract survives even if she could have pled the claim in tort. This argument ignores the language of subsection 24-10-106(1) and erroneously assumes that a bailor may pursue multiple claims for destruction of bailed property. The bailor has but one claim, with the option of pleading that claim under different theories.
. This is consistent with the notion that injuries to property typically give rise to tort liability. See, e.g., Duncan v. Schuster-Graham Homes, Inc.,
. Ms. Foster acknowledges that Spaur predates the CGIA but argues that the case is still binding precedent. In support of that argument, she notes that a division of this court cited Spaur in its opinion in Thompson Creek Townhomes, LLC v. Tabernash Meadows Water & Sanitation Dist.,
