Bailment case

Judy owned a diamond ring for which the appraised value was $15,000.00.She took it to the Peeple's Pricey Jewelry store ("PPJ") in downtown Rutland for repairs.Unbeknownst to Judy, but in accord with its standard practice, PPJ decided to forward the ring to FineStone's, a specialty jeweler in Vancouver, to do the repair work.PPJ sent the ring to FineStone's via registered mail, listing the value for insurance purposes at $100.00.

By the time FineStone's had completed the repairs, Canada Post workers were on strike.FineStone's decided to use a private courier service, OnTimeEveryTime Couriers ("OTET"), to deliver the ring back to PPJ.OTET's standard clause in its courier contract entered into with FineStone's limited its liability to $50.00, or declared value, for lost or damaged items.FineStone's declared the value of the ring to be $100.00.Again, Judy was not consulted as to the means by which FineStone's intended to return the ring to PPJ.

The ring was never delivered to PPJ.It was later found that the OTET delivery driver had stolen the ring.Following a criminal trial, the driver went to jail, but the ring was never recovered.Judy then sued PPJ, FineStone's, and OTET for damages for the loss of the ring.

State the legal issues that arise on these facts.What are the legal tests the court will employ to resolve the issues?Decide whether Judy will be successful in any or all of her claims.Give reasons for your answers, referring to the relevant legal principles.