§ 7-601 — Lost, Stolen, or Destroyed Documents of Title

Section 7--601. Lost, Stolen, or Destroyed Documents of Title.\n (a) If a document of title is lost, stolen, or destroyed, a court may\norder delivery of the goods or issuance of a substitute document and the\nbailee may without liability to any person comply with the order. If the\ndocument was negotiable, a court may not order delivery of the goods or\nissuance of a substitute document without the claimant's posting\nsecurity unless it finds that any person that may suffer loss as a\nresult of nonsurrender of possession or control of the document is\nadequately protected against the loss. If the document was\nnonnegotiable, the court may require security. The court may also order\npayment of the bailee's reasonable costs and attorney's fees in any\naction under this subsection.\n (b) A bailee that, without a court order, delivers goods to a person\nclaiming under a missing negotiable document of title is liable to any\nperson injured thereby. If the delivery is not in good faith, the bailee\nis liable for conversion. Delivery in good faith is not conversion if\nthe claimant posts security with the bailee in an amount at least double\nthe value of the goods at the time of posting to indemnify any person\ninjured by the delivery which files a notice of claim within one year\nafter the delivery.\n