What is the best possible solution for a bailee if there is a third-party, who claims to have superior rights to those of the bailor for possession of the bailed property?

Question

Quizplus · Accepted Answer

Bringing the third-party claimant into a lawsuit along with the bailor is the best possible solution for a bailee if there is a third-party claiming possession of the bailed property. This way, the court can determine who has superior rights to the bailed property and the bailee can avoid liability for delivering the property to the wrong party. Giving the property to either the third-party or the bailor without resolving the conflict could result in the bailee being held liable for conversion by one of the parties involved. It is not always guaranteed that the bailee will get possession of the bailed property in such a situation.

What Is the Best Possible Solution for a Bailee If