Sec. 42a-7-308. Enforcement of carrier's lien.
Sec. 42a-7-308. Enforcement of carrier's lien. (a) A carrier's lien on goods may
be enforced by public or private sale of the goods, in bulk or in packages, at any time
or place and on any terms that are commercially reasonable, after notifying all persons
known to claim an interest in the goods. The notification must include a statement of
the amount due, the nature of the proposed sale and the time and place of any public
sale. The fact that a better price could have been obtained by a sale at a different time
or in a method different from that selected by the carrier is not of itself sufficient to
establish that the sale was not made in a commercially reasonable manner. The carrier
sells goods in a commercially reasonable manner if the carrier sells the goods in the
usual manner in any recognized market therefor, sells at the price current in that market
at the time of the sale, or otherwise sells in conformity with commercially reasonable
practices among dealers in the type of goods sold. A sale of more goods than apparently
necessary to be offered to ensure satisfaction of the obligation is not commercially
reasonable, except in cases covered by the preceding sentence.
(b) Before any sale pursuant to this section, any person claiming a right in the goods
may pay the amount necessary to satisfy the lien and the reasonable expenses incurred
in complying with this section. In that event, the goods may not be sold but must be
retained by the carrier, subject to the terms of the bill of lading and this article.
(c) A carrier may buy at any public sale pursuant to this section.
(d) A purchaser in good faith of goods sold to enforce a carrier's lien takes the
goods free of any rights of persons against which the lien was valid, despite the carrier's
noncompliance with this section.
(e) A carrier may satisfy its lien from the proceeds of any sale pursuant to this section
but shall hold the balance, if any, for delivery on demand to any person to which the
carrier would have been bound to deliver the goods.
(f) The rights provided by this section are in addition to all other rights allowed by
law to a creditor against a debtor.
(g) A carrier's lien may be enforced pursuant to either subsection (a) of this section
or the procedure set forth in subsection (b) of section 42a-7-210.
(h) A carrier is liable for damages caused by failure to comply with the requirements
for sale under this section and, in case of wilful violation, is liable for conversion.
(1959, P.A. 133, S. 7-308; P.A. 04-64, S. 23.)
History: P.A. 04-64 amended section to adopt the 2003 Revision of Uniform Commercial Code Article 7-Documents
of Title.