§ 4-7-601 — Lost, stolen, or destroyed documents of title

(a) If a document of
title is 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 the order. If the document was negotiable, a court may not order delivery of
the goods or issuance of a substitute document without the claimant's posting
security unless it finds that any person that may suffer loss as a result of
nonsurrender of possession or control of the document is adequately protected
against the loss. If the document was nonnegotiable, the court may require security.
The court may also order payment of the bailee's reasonable costs and attorney's
fees in any action under this subsection (a).

(b) A bailee that, without a court order, delivers goods to a person claiming
under a missing negotiable document of title is liable to any person injured thereby.
If the delivery is not in good faith, the bailee is liable for conversion. Delivery in good
faith is not conversion 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
that is injured by the delivery and that files a notice of claim within one year after
the delivery.

Legislative History

Source: L. 2006: Entire article R&RE, p. 488, � 2, effective September 1. L. 2007: Entire section amended, p. 373, � 23, effective August 3.