Bailment: Who Is Responsible for a Parked Car

Bailment is the legal relationship created when one party (the bailor) hands possession of property to another party (the bailee), who takes custody of it for a time and must return it.

Courts usually look at control: when the operator takes the keys, a bailment generally exists and the operator owes reasonable care; when the customer parks, locks and leaves with the keys, it is often treated as renting space. Rules vary by state.

In parking, whether a bailment exists usually decides how responsible the operator is for a vehicle. When customers hand over their keys, as with valet or attendant parking, courts generally find a bailment, and the operator owes a duty of reasonable care. When customers park, lock and keep their keys, courts often treat the arrangement as a license or lease of space, with less responsibility for the car. Rules vary by state. This entry is general information, not legal advice.

Factors courts consider

Who keeps the keys.
Whether the operator controls access and exit, for example with attendants checking tickets.
What the ticket, signs and contract say about liability.
Whether the customer could retrieve the car without the operator.

How operators manage the risk

Clear ticket and sign language, reviewed by counsel for each state.
Insurance, including garagekeepers liability coverage.
Key control, damage inspections and claims procedures for valet operations.
Camera coverage and records that document vehicle condition.

The Parkonomics view

Taking someone’s keys means taking responsibility for their car. Operators should price valet service and insure it with that in mind.