PDF! Fellow Weekly - Issue 84- Cash and Carry: Of Pearls & Platinum

Fellow Weekly - Issue 84

WHAT'S THE LAW ™

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WHAT'S THE LAW?™
Encouraging intelligent and entertaining debate at your Shabbat table.

Fellow Weekly raises issues of business law and ethics through lively emails by featuring your real-life scenarios answered by our leading authorities and professionals.

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CASE 184: Cash and Carry: Of Pearls and Platinum

Mark and Molly Miller's wedding in Madison Wisconsin was truly a memorable experience. Both bride and groom were hardworking and selfless community activists and the broad array of wedding guests were overjoyed to have an opportunity to express their gratitude towards Mark and Molly for all that they did for the Community. Aside from infusing the wedding atmosphere with electrifying energy, sensation and joy, many showered the new couple with generous and meaningful monetary gifts.

On Monday night, after the festivities, the new couple took up temporary residence in a comfortable bride and groom apartment in Sherwood Hills, overlooking Lake Mendota. The beautiful parks, calming waters and breathtaking view provided Mark and Molly a special setting with which to commence their married life.

Settling in to the apartment, Mark unloaded his pockets and placed part of his newly amassed fortune in the night table drawer near his bed. Molly did the same with some jewelry, including a platinum brooch she borrowed from her girlfriend Gail and a rented pearl headpiece.

The next morning, as Mark and Molly were eating breakfast, the phone rang. Leo the landlord requested permission to enter the apartment and remove a bookcase he had kept in storage. Mark and Molly agreed.

That evening, the couple returned from a boating expedition and were horrified at what waited for them at home. Their fortune was gone! Their investigation revealed that, Leo had given the keys to the movers who took advantage of the empty setting and filled their pockets with cash and jewelry on the way out.

Who pays for the brooch?

Who pays for the headpiece?

Must Leo reimburse Mark for the cash loss?

What is the law?

Please email us with your comments and answers at weekly@projectfellow.org.
Read next week's issue for the answer!

LAST WEEK'S CASE

CASE 183: Watch Out!

After a fulfilling and rich history of US military and civic engineering, 18th Brigade Vietnam War Veteran Oren Swift relocated to Israel.

The Swifts settled alongside their charming grandchildren, amidst the warm Anglo-Saxon ever emerging community of Ramat Beit Shemesh. Oren's brood savored his company and his fun and innovative math games would keep his litter intrigued for hours on end.

Always an opportunist, Swift took advantage of the high profile temporary offer to join the CHSRP (California High Speed Rail Project); filling the post of Senior High Speed Rail Project Manager for the environmental and preliminary engineering of a 163 mile segment of the project.

A light traveler, Oren began the bi- monthly non-stop commute from Ben Gurion to LAX International.

Last week, Larry Sanders, a business acquaintance, asked Oren if he would mind bringing back to Israel a gold watch for his son-in-law to be. Oren graciously agreed.

Arriving in Ben Gurion, Oren unassumingly headed straight towards the exit . Suddenly, the customs officer called him over and asked what he had in his carry on. "A gold watch for the new bridegroom" "Please open up the bag." Oren opened the bag in shock and disbelief. Five gold watches! "How many engaged daughters do you have?" barked the officer!

"Open up your bags sir." "Are these ten mp3 players for the bridegroom as well?" "No sir. They're for my grandchildren." No sir, you meant they're for My grandchildren! The officer snatched Oren's passport for a minute, typed a warning note for the next time on to the computer, confiscated the watches and mp3's and sent Oren off.

"Larry! You've gotten me into trouble with the authorities and caused me a significant financial loss as well. I would expect you to reimburse me for the mp3 players and a punitive fee for the future distress I will expect to encounter next time I enter the country.

"Oren, I understand your distress over this matter. But let me just ask you one question. If I would have told you beforehand that there were five watches in the bag you would have taken it, right?

So it was all on your risk ... thanks for trying.

What is the law?

The Answer

We present you here with a concise ruling. For a more intricate elucidation, please see the detailed explanation below.

Larry may not fool Oren into taking the additional watches. He is not liable for Oren's unexpected financial distress. Unless Oren behaved in a manner which aroused suspicion is absolved from compensating Larry for the confiscated watches.

Detailed Explanation

To answer Watch Out!, we must appreciate the following three laws:

1. An unpaid trustee assumes liability solely for damages due to negligence. So long as the unpaid trustee is not negligent, he or she is absolved from paying for any loss incurred [Choshen Mishpat 291: 1].

2. One may not directly or indirectly cause his/her fellow a financial loss.

One is liable for direct damages both intentional and unintentional. One is liable and should pay as well, for intentional indirect damages.

The Heavenly Court retains the sole right to prosecute an offender to pay for indirect damages. Beis Din is vested with the power to prosecute for direct damages [Choshen Mishpat 386].
See PDF for The P.D.L [Prosecution of Damage Liabilities] Chart
3. It is forbidden to fool another in business [Choshen Mishpat 228:6]

Application

Oren

Oren, no more than an unpaid trustee is only liable for damages due to negligence. Unless Oren behaved in a manner which aroused the authorities suspicion, he was not negligent with his trust and as such, is absolved from reimbursing Larry for the confiscated watches

Larry

Disclaimer: Our discussion centers around the Halachic liabilities between the Larry and Oren. Under no circumstances are we sanctioning dodging the law of the land.

Aside from smuggling, Larry was wrong for fooling Oren into taking the five watches. Oren unfortunately suffered a significant financial loss and inconvenience. Let us analyze the story to ascertain whether Larry is liable for Oren's mp3s and legal inconveniences and if liable - which court would prosecute him should he be delinquent in paying.

At best the losses of the mp3s and the future inconveniences are indirect in nature. As such, prosecution thereof would be relegated to the Heavenly Court.

Yet, there is reason to regard these indirect damages as unintentional in nature. Consequently absolving Larry from any liabilities thereof. Larry tool a risk. He did not intend or expect Oren to get caught. In addition, he did not know that the repercussions for Oren's getting caught would entail the loss of the mp3s and a mark on his passport. Even if Oren were to get caught, the reactions of the authorities often cannot be foretold.

Thus, with Larry not expecting Oren to get caught, it is difficult to require Larry to pay for the financial distress Oren suffered as a result.

Answered by: The Fellow - Yesharim Research Center

Note:

Although we aim to present the correct ruling, varying details are always important and decisively influence every individual case. Our readers are thus encouraged to present their personal cases to a competent authority and not solely rely on the information provided.
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