§ 4-2.5-531 — Standing to sue third parties for injury to goods

Colorado § 4-2.5-531

• Jurisdiction: Colorado
• Title 04: Uniform
• Art.: Leases

Text

(1) If a third
party so deals with goods that have been identified to a lease contract as to cause
actionable injury to a party to the lease contract (a) the lessor has a right of action
against the third party, and (b) the lessee also has a right of action against the third
party if the lessee:

(i) Has a security interest in the goods;

(ii) Has an insurable interest in the goods; or

(iii) Bears the risk of loss under the lease contract or has since the injury
assumed that risk as against the lessor and the goods have been converted or
destroyed.

(2) If at the time of the injury the party plaintiff did not bear the risk of loss
as against the other party to the lease contract and there is no arrangement
between them for disposition of the recovery, his or her suit or settlement, subject
to his or her own interest, is as a fiduciary for the other party to the lease contract.

(3) Either party with the consent of the other may sue for the benefit of
whom it may concern.

Legislative History

Source: L. 91: Entire article added, p. 318, � 1, effective July 1, 1992.