§ 26-1-2.1-531 — Standing to sue third parties for injury to goods

Indiana § 26-1-2.1-531

• Jurisdiction: Indiana
• Title 26: COMMERCIAL LAW
• Art. 1: UNIFORM COMMERCIAL CODE
• Ch. 2.1: 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, the party
plaintiff suit or settlement, subject to the party plaintiff's 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

As added by P.L.189-1991, SEC.3.