§ 41-02.1-79 — (2A-531) Standing to sue third parties for injury to goods

North Dakota § 41-02.1-79

• Jurisdiction: North Dakota
• Title 41: Uniform Commercial Code
• Ch. 41-02.1: 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, the lessor has a right of action
against the third party, and the lessee also has a right of action against the third party
if the lessee:
a. Has a security interest in the goods;
b. Has an insurable interest in the goods; or
c. 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 plaintiff's suit or settlement, subject to the 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.