§ 41-07-18 — (7-302) Through bills of lading and similar documents of title

1. The issuer of a through bill of lading, or other document of title embodying an
undertaking to be performed in part by a person acting as its agent or by a performing
carrier, is liable to any person entitled to recover on the bill or other document for any
breach by the other person or the performing carrier of its obligation under the bill or
other document. However, to the extent that the bill or other document covers an
undertaking to be performed overseas or in territory not contiguous to the continental
United States or an undertaking, including matters other than transportation, this
liability for breach by the other person or the performing carrier may be varied by
agreement of the parties.
2. If goods covered by a through bill of lading or other document of title embodying an
undertaking to be performed in part by a person other than the issuer are received by
that person, the person is subject, with respect to its own performance while the goods
are in its possession, to the obligation of the issuer. The person's obligation is
discharged by delivery of the goods to another person pursuant to the bill or other
document and does not include liability for breach by any other person or by the
issuer.
3. The issuer of a through bill of lading or other document of title described in
subsection 1 is entitled to recover from the performing carrier, or other person in
possession of the goods when the breach of the obligation under the bill or other
document occurred:
a. The amount it may be required to pay to any person entitled to recover on the bill
or other document for the breach, as may be evidenced by any receipt, judgment,
or transcript of judgment; and
b. The amount of any expense reasonably incurred by the issuer in defending any
action commenced by any person entitled to recover on the bill or other document
for the breach.