§ 26-1-2-722 — Who can sue third parties for injury to goods

Where a third party so deals with goods
which have been identified to a contract for sale as to cause actionable
injury to a party to that contract
(a) a right of action against the third party is in either party to the
contract for sale who has title to or a security interest or a special
property or an insurable interest in the goods; and if the goods have
been destroyed or converted a right of action is also in the party who
either bore the risk of loss under the contract for sale or has since the
injury assumed that risk as against the other;
(b) if at the time of the injury the party plaintiff did not bear the risk
of loss as against the other party to the contract for sale and there is no
arrangement between them for disposition of the recovery, his suit or
settlement is, subject to his own interest, as a fiduciary for the other
party to the contract;
(c) either party may with the consent of the other sue for the benefit
of whom it may concern.
Formerly: Acts 1963, c.317, s.2-722.