Preston v. Prather

Citations

• 137 U.S. 604
• 11 S. Ct. 162
• 34 L. Ed. 788
• 1891 U.S. LEXIS 2048

Syllabus

<p>When a case is heard, on stipulation of the parties, by the court without the intervention of a jury, and its special findings cover all the disputed questions of fact, and there is in the record no bill of exceptions taken to rulings in the progress of the trial, the correctness of the findings on the evidence is not open for consideration here.</p> <p>Gratuitous bailees of another’s property are not responsible for its loss .unless guilty of gross negligence in its keeping; and whether that negligence existed is a question of fact for the jury to determine; or to be determined by the court where a jury is waived.</p> <p>The reasonable care which a bailee of another’s property entrusted to him for safe keeping without reward must take, varies with the nature, value and situation of the property and the bearing of surrounding circumstances on its security.</p> <p>Persons depositing valuable articles with banks for safe-keeping without reward have a right to expect that such measures will be taken as will ordinarily secure them from burglars outside and from thieves within; that whenever ground for suspicion arises an examination will be made to see that they have not been abstracted or tampered with; that competent men, both as to ability and integrity, for the discharge of these duties will be employed; and that they will be removed whenever found wanting in either of these particulars.</p> <p>In this case persons engaged in business as bankers received for safe-keeping a parcel containing bonds, which was put in their vaults. They were notified that their assistant cashier, who had free access to the vaults where the bonds were deposited, and who was a person of scant means, was engaged in speculations in stocks. They made no examination as to the securities deposited with them, and did not remove the cashier. He stole the bonds so deposited. Held, that the bankers were guilty of gross negligence, and were liable to the owner of the bonds for their value at the