Stolen dirtbike, who's responsible?

What is the name of your state? Ohio. A friend asked my husband to work on a kids dirtbike that did not run. My husband told him it would be a couple weeks before he could get to it. The friend said okay and left the dirtbike in our garage. The dirtbike got stolen. Our homeowners insurance company said they are not responsible because the dirtbike is considered a motor vehicle and should have it's own insurance policy. Our friend wants us to pay $800 for the stolen dirtbike. Are we responsible or can we be sued? The dirtbike was not running at the time and was not insured as a motor vehicle. Our ins. co. said it is a "motor vehicle" and should have it's own insurance or it is under the section of our policy titled "business" purposes. My husband doesn't have a "business" because he doesn't get paid. He was going to fix it for a friend for free.

joycemichelle said:

What is the name of your state? Ohio. A friend asked my husband to work on a kids dirtbike that did not run. My husband told him it would be a couple weeks before he could get to it. The friend said okay and left the dirtbike in our garage. The dirtbike got stolen. Our homeowners insurance company said they are not responsible because the dirtbike is considered a motor vehicle and should have it's own insurance policy. Our friend wants us to pay $800 for the stolen dirtbike. Are we responsible or can we be sued? The dirtbike was not running at the time and was not insured as a motor vehicle. Our ins. co. said it is a "motor vehicle" and should have it's own insurance or it is under the section of our policy titled "business" purposes. My husband doesn't have a "business" because he doesn't get paid. He was going to fix it for a friend for free.

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My response:

You and hubby are responsible for the loss. Your hubby agreed to keep the bike on your premises, thus creating a "bailment". Such a bailment requires you and hubby to take "great care" to keep another person's property safe from loss or damage.

IAAL

Some states approach this different, but there is generally a distinction of duties depending on who benefits from the bailment. If the sole benefit is with the bailee (you lend a lawn mower to a neighbor so he can cut the grass), he must take extra special care of it. If the benefit of the bailment is mutual (you were charging for the repairs to the bike), you must use reasonable care to prevent this theft and are liable for ordinary negligence. Your situation, however, is that the bailor (owner of the bike) is recieving the sole benefit of you repairing it. While you still have to show that care was taken (having it in a shed would show that), you should only be liable for gross negligence. The rationale for this rule is that if the bailee is doing something as a favor for the bailor, it is not reasonable to expect him to be as careful as when he is deriving some kind of benefit from keeping the goods.