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Healy v. N.Y. Central & Hudson River Railroad Co. | 138 N.Y.S. 287 (1912)
A bailment is a relationship by which possession and control of property is temporarily delivered to another for safekeeping. The bailor is the one who gives possession, and the bailee is the one who temporarily takes possession. In Healy versus New York Central and Hudson River Railroad, we explore whether a bailee’s attempt to limit liability for lost or damaged packages is effective.
William Healy deposited a handbag at the New York Central and Hudson River Railroad’s parcel room at the railroad’s Albany station. The clerk gave Healy a coupon to present when he returned to claim his bag. The coupon was small, measuring two by three inches. A limitation-of-liability clause was printed on the back of the coupon. It purported to limit the railroad’s liability for any lost or damaged parcels to ten dollars. With the exception of the phrase ten dollars, the clause was in fine print. Healy placed the coupon in his pocket. He didn’t read it. The clerk didn’t call Healy’s attention to the limitation-of-liability clause.
When Healy returned to claim his bag later that day, it was missing. An investigation revealed that the clerk had mistakenly given Healy’s bag to another customer. It was never recovered.
Healy filed suit against the railroad to recover the value of his bag and its contents. The trial court found in Healy’s favor and awarded him seventy dollars and ten cents. The railroad appealed to the appellate division. The railroad acknowledged that it was liable for Healy’s lost bag but argued that its liability should be limited to ten dollars.
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