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  400.7-601.  Lost and missing documents. — (1)  If a document has been lost, stolen or destroyed, a court may order delivery of the goods or issuance of a substitute document and the bailee may without liability to any person comply with such order.  If the document was negotiable the claimant must post security approved by the court to indemnify any person who may suffer loss as a result of nonsurrender of the document.  If the document was not negotiable, such security may be required at the discretion of the court.  The court may also in its discretion order payment of the bailee's reasonable costs and counsel fees.

  (2)  A bailee who without court order delivers goods to a person claiming under a missing negotiable document is liable to any person injured thereby, and if the delivery is not in good faith becomes liable for conversion.  Delivery in good faith is not conversion if made in accordance with a filed classification or tariff or, where no classification or tariff is filed, if the claimant posts security with the bailee in an amount at least double the value of the goods at the time of posting to indemnify any person injured by the delivery who files a notice of claim within one year after the delivery.


(L. 1963 p. 503 § 7-601)

---- end of effective   28 Aug 1963 ----

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400.7-601 8/28/2017
400.7-601 8/28/1963 8/28/2017

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