(a) If a document of title is lost, stolen, or destroyed, a court may order delivery
of the goods or issuance of a substitute document and the bailee may without liability
to any person comply with the order. If the document was negotiable, a court may not order delivery of the goods or issuance
of a substitute document without the claimant's posting security unless it finds that
any person that may suffer loss as a result of nonsurrender of possession or control
of the document is adequately protected against the loss. If the document was nonnegotiable, the court may require security. The court may also order payment of the bailee's reasonable costs and attorney's
fees in any action under this subsection.
(b) A bailee that without court order delivers goods to a person claiming under a
missing negotiable document of title is liable to any person injured thereby. If the delivery is not in good faith, the bailee is liable for conversion. Delivery in good faith is not conversion if the claimant posts security with the
bailee in an amount at least double the value of the goods at the time of posting
to indemnify any person injured by the delivery that files a notice of claim within
one year after the delivery.
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
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