(a) 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:
(1) The lessor has a right of action against the third party, and
(2) 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.
(b) 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, his or her suit or settlement, subject to his or her own interest, is as a fiduciary for the other party to the lease contract.
(c) Either party with the consent of the other may sue for the benefit of whom it may concern.
CREDIT(S)
(July 22, 1992, D.C. Law 9-128, § 2(b), 39 DCR 3830.)
Uniform Statutory Source: Section 2-722.
Changes: Revised to reflect leasing practices and terminology.
Definitional Cross References:
“Action”. Section 1-201(1).
“Goods”. Section 2A-103(1)(h).
“Lease contract”. Section 2A-103(1)(l).
“Lessee”. Section 2A-103(1)(n).
“Lessor”. Section 2A-103(1)(p).
“Party”. Section 1-201(29).
“Rights”. Section 1-201(36).
“Security interest”. Section 1-201(37).
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 28:2A-531.
Legislative History of Laws
For legislative history of D.C. Law 9-128, see Historical and Statutory Notes following § 28:2A-101.