In Brief
A guest's car was stolen from a 5-star hotel's valet parking in 1998. After the insurer (United India Insurance) settled the claim, it sued the hotel as subrogee for recovery. The hotel argued it had no liability due to an "owner's risk" clause on the parking ticket. The Supreme Court held that: (1) the insurer had standing to sue as subrogee; (2) valet parking creates a bailment relationship, imposing a prima facie negligence standard (not strict liability) on the hotel; (3) the hotel must prove it exercised reasonable care; (4) exemption clauses cannot shield a bailee from liability for its own negligence; and (5) the hotel failed to meet its duty of care, as the car was stolen due to improper key storage. The appeal was dismissed.
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