Garlock v. Multiple Parking Services, Inc.Garlock v. Multiple Parking Services, Inc.
OPINION OF THE COURT
The plaintiff having moved for summary judgment, and the defendant having cross-moved for summary judgment, the facts are those uncontroverted assertions and exhibits found in the complaint, and the affidavits which were attached to the moving papers.
The plaintiff, on June 13, 1971, at about 7:30 p.m., entered a parking lot operated by (but not owned by) the defendant corporation. Plaintiff paid the attendant the parking fee (defendant said this was a nominal flat rate of 50 cents at that time) and was directed to park his 1968 Chevrolet Corvette roadster, and take his keys with him.
At approximately 11:30 p.m., the plaintiff returned to the parking lot and found his auto had been burglarized and vandalized. He further stated that the attendant appeared to be in an intoxicated condition when the plaintiff returned, but had seemed sober when he had first left his car.
The convertible top had been slashed; driver door window smashed; driver door upholstery slashed; seats slashed; dash panel slashed, and a stereo tape deck and eight cartridge tapes were stolen. Total damage, which is not disputed by the defendant, was $506.
The defendant, in its answer, generally denied the plaintiff’s allegations. In its affidavit in support of its later motion for summary judgment, the defendant indicated that this incident took place at 505 Washington Street in downtown Buffalo.
The defendant said it was the operator of the parking lot but not the owner. It further alleged that the lot had a sign posted showing rates, and the fact that the lot closed at 9:00 p.m. The lot was not fenced, and the lot attendant did not take possession of the autos or their keys. Defendant’s president said it was not customary for the lot attendant to remain after the 9:00 p.m. closing time, but he did not know personally whether or why the attendant remained until the 11:30 p.m. discovery time.
The unfenced lot had available ingress and egress on Wash
The defendant denies liability on the basis that it never took possession of the plaintiff’s auto; that the claim ticket contained a liability disclaimer, and that the damage occurred after closing, so that they were no longer responsible.
The legal history of this type of incident has revolved about the question as to whether there was a bailment created, and which standard of care therefore applied (see, e.g., 25 NY Jur, Garages, § 31 et seq.; 5 NY Jur, Bailment, §§ 14, 17, 58, 85, 88 et seq.; 2A Warren’s Negligence, ch 14, § 5.01 et seq.; § 5.06 et seq.; 2B Warren’s Negligence, ch 48, § 2.06 et seq.; §5; 4B Warren’s Negligence, ch 55, § 1.02 et seq.; 3 Abbott’s Digest 2d, Bailment, §§ 1, 5, 11, 14 et seq.; Ann.
Since we are bound by stare decisis we must first look to controlling precedent in the Fourth Judicial Department and the Court of Appeals. The earlier case in these two jurisdictions is Osborne v Cline (
The Court of Appeals decided in Osborne v Cline (supra, p 437) that recovery depends upon establishing bailment: "Whether a person simply hires a place to put his car or whether he has turned its possession over to the care and custody of another depends on the place, the conditions, and the nature of the transaction.” The gravamen is one of choice. "This sign might not relieve the defendant for his negligence if he were in fact a bailee, but it was a circumstance to be considered as bearing upon the question whether for a fee of twenty-five cents the defendant merely permitted auto drivers to use his ground. Any house or lot owner may permit for a fee another to put his car on the premises without becoming a bailee or assuming any responsibility for its safety” (supra, pp
The Fourth Department’s leading case is Potomac Ins. Co. v Donovan (
"The court properly left to the jury the question of whether or not the transaction created the relation of bailor and bailee between the car owner and the defendant (Osborne v. Cline,
"While the allegation in the plaintiff’s complaint that the car had been stolen precludes the presumption that otherwise would arise from demand and refusal to deliver the car (see Claflin v. Meyer,
The gravamen of the Potomac Insurance case seems to be the drawing of distinctions between the presumptions of negligence for the nondelivery of a bailed chattel, the rebutting of that presumption by proof the chattel was stolen, and the inference of negligence created by the fact of the theft. The
In the instant case, the court must make a finding, as a matter of law, as to whether liability will attach. If we must find a bailment, there are no useful guidelines in the Potomac case. Thus, it is necessary to look to other departments to find the necessary guidelines.
One of the earlier cases is Galowitz v Magner (
In Nargi v Parking Assoc. Corp. (
Thus, the court decided that there was a bailment, and added that he need not decide that issue, because there was a failure to exercise reasonable care. We are still left wondering whether the above emphasized statement is merely dicta, since the court did find a bailment, and negligence.
In Sherber v Kinney Systems (
Greene Steel & Wire Co. v Meyers Bros. Operations (
The court, in Greene, did not find it necessary to comment on the effects of that section which went into effect one month before the decision date (it was not new law, however — see General Business Law, former § 89-b). This same court in 1971, in Security Mut. Ins. Co. v Airport Parking Co. of Amer. (
In Silberman v Olympic Parking Serv. (
In Liberty Mut. Ins. Co. v Meyers Bros. Operations (
The court concludes that the plaintiff was a virtual captive of the defendant. Next, the court articulates all the facts and circumstances which it could easily have couched in terms of foreseeability of the theft of the auto. Instead, without further legal and semantic gymnastics, it concludes: “The court finds delivery of the vehicle under such compelling circumstances to the defendant constitutes a bailment” (supra, p 650).
In Palazzo v Katz Parking Systems (
In Makower v Kinney System (
He stated: "It [the use of a ticket dispensing machine] is a calculated risk the operator is taking. But just because it makes later theft easier does not affect the question of whether a bailment is created when a car enters the lot” (
In Ellish v Airport Parking Co. of Amer. (
In Ellish, the court found that the statement on the parking ticket that the plaintiff had merely acquired a license to park was void under section 5-325 of the General Obligations Law as an illegal limitation. Based on the same facts as Makower (supra), this court found that a bailment was created, and recovery allowed on a presumption of negligence for nondelivery of the bailed chattel.
On appeal to the Appellate Term, this decision was reversed. (
Next, the appellate court in discussing the controlling case in the First Department (e.g., Greene Steel & Wire Co. v
Finally: "We find no merit in plaintiffs contention that defendant was guilty of negligence, even in the event that there was no bailment. Absent such a relationship, the ordinary principles of negligence would be inapplicable. ” (
The Appellate Term decision was then appealed to the Appellate Division, where it was affirmed (
The court went on to distinguish its earlier decision in Dunham (supra) saying that in Dunham, an attendant directed the driver where to park, thus giving the appearance of the acceptance of custody of the car, thereby creating a bailment. Curiously, the next paragraph begins: "We are of the opinion that liability should not be determined by ancient labels and characteristics not connected with present day practices” (
Ellish is an interesting case, since it inherently, though perhaps unconsciously, contains the emerging modern theory for determining liability in parking lot cases. First, bailment will be the legal key to liability; second, the amount of security will determine whether there is a bailment; third, the easier the operator makes it for the auto to be stolen or vandalized, the less likely he is going to be held liable.
In Security Mut. Ins. Co. v Airport Parking Co. of Amer. (
In Langenthal v American Stuyvesant Garage (
The only question presented was whether the contract violated section 5-325 of the General Obligations Law. Since there was no allegation of negligence, the court dismissed, since, without the presumption, the plaintiff failed in his burden of proof.
In Stephens v Katz Parking System (
In Peralta v Port of New York Auth. (
On appeal, this decision was reversed (Peralta v Port of New York Auth.,
It is clear, from these cases, that the rationale which was originally used to protect the rights and property of persons leaving their goods with others, now effectively frustrates those rights. This is because the less the indicia of bailment, the less the protection for the goods, and the greater the likelihood of unreimbursed losses. This observation is graphically illustrated in the Ellish case (
In our society today, the use of the automobile as the main mode of transportation is irrefutably established (with the possible exception of the City of New York). A person does not really choose where to park; he parks as close to his destination as possible. The fee he pays depends more on the distance he must then walk to the main business district or other specific area of attraction, rather than the perceived amount of security offered by supposedly competing operators.
What the developing line of precedent has created, is the absurd situation where, the less an operator spends, the less likely he will be found liable for damage or loss of a vehicle. Thus, even though he may be charging (in the Buffalo-Erie County metro area today) up to $3 per day, per car, for long-term parking, or 50 cents per hour, per car (with an average of 10 cars per space, per day) in a short-term lot, we are not holding him responsible for the care of the property left with him. Therefore, he saves money by putting in a "ticket spitter” instead of an attendant; or posts disclaimer notices which some courts have found significant as evidence of a supposed implied contractual understanding; or by not fencing his lot; or by not providing adequate lighting; or by not providing a guard for security; or by any combination of these factors. The net result is that he saves further sums because he is not found liable for damage or loss to vehicles. This last conclusion may not be entirely true, today in the City of Buffalo, as we shall soon see.
In the City of Buffalo, the money saving bailment rationale
It should be amply clear that the city fathers intended that those who profit from the storage of vehicles should include the risks of loss or damage to those vehicles as a cost of doing business. This means they determined that increases in rates or loss of insurability should be considered by the operator as a factor in determining whether to fence, light, and how to guard the lot.
The present state of the law in the First and Second Departments of this State seems to force the owner to rely on his own insurance if his auto is stolen or vandalized in a parking lot. That assumes that the owner has theft and comprehensive coverage, or perhaps collision coverage (none of which are mandatory), it fails to take into account that, even with such coverage, there is usually a deductible and higher rates, and non "risk pool” insurability may be affected by the filing of a claim.
If we were to follow the precedent of the down-State courts, we would have a lot of insurance companies receiving premiums, and never paying any claims.
All of this exploration and analysis leads this court to one conclusion: the "bailment theory” as a basis for recovery in parking lot cases is no longer appropriate. We assume this was the state of mind and conclusion reached by the Court of Appeals in 1976, in regard to the archaic distinctions between the status of persons on real property, and the consequent duty of care owed them. (See Basso v Miller,
These series of cases: abolished the distinctions between
The new standard to be followed after these cases was to be "reasonable care under the circumstances whereby foreseeability shall be a measure of liability” (Basso v Miller, supra, p 241). In Basso, the court cited, with approval, the rationale in Kermarec v Compagnie Generale (
The same tortured reasoning in the evolution of jurisprudential thought on the question of responsibility for automobiles left with others can be found in comparison to that outlined above in regard to persons or property. The citation at 7 ALR3d 927 is ample proof of the absurd state of the law as to the liability for damaged or stolen autos left in commercial parking lots.
The unarticulated conclusion that this annotation and many others lead to is that the concept of bailment is no longer a viable theory in application to a very real modern problem. Therefore, this court need not decide whether a bailment was created in the instant case. The measure we will apply is that of the Basso case (
One of the reasons in applying the Basso rationale is that we are unable to perceive any logical reason why property left on the real property of another should be treated by the law any differently than persons on other persons’ real property.
The presence of insurance shows both the city’s determination that public policy demands that owners or operators of parking lots should be responsible and financially able to pay for damage or theft, and that the owners are in fact able to pay.
When one considers the initial cost today of a passenger vehicle, plus its financing costs; the ravages of depreciation; the cost of repairs; the costs of insurance and license fees; the wear and tear of potholes and salt corrosion, and costs of parking itself, it is a small thing to ask that a parking lot owner at least keep it from being stolen or damaged.
This court finds that the defendant failed to properly protect the plaintiff’s vehicle from damage through the acts of a vandal. The possibility of such acts were clearly foreseeable considering the parking lot’s location, size, and general accessibility. The failure to fence or provide a guard, or to at least direct the patron to a location close to the attendant’s booth are acts of omission which, as a matter of law, constitute negligence.
The court further finds that the attendant’s failure to observe the acts of vandalism — which, by nature of the damage caused, had to be overt and observable — was also negligence, attributable to the defendant. This is true, whether the attendant was officially on duty or not, since the defendant cannot establish when the damage took place. Even though the plaintiff has the burden of proof, since he was not present and the defendant’s employee was, the burden of coming forward with those facts shifts to the defendant.
The plaintiff’s burden is met by his showing that the defendant failed to exercise "reasonable care under the circumstances, whereby foreseeability shall be a measure of liability”. (Basso v Miller,