70A-7a-601 - Lost, stolen, or destroyed documents of title.
70A-7a-601. Lost, stolen, or destroyed documents of title.
(1) If a document of title is lost, stolen, or destroyed, a court may order delivery of thegoods or issuance of a substitute document and the bailee may without liability to any personcomply with the order. If the document was negotiable, a court may not order delivery of thegoods or issuance of a substitute document without the claimant's posting security unless it findsthat any person that may suffer loss as a result of nonsurrender of possession or control of thedocument is adequately protected against the loss. If the document was nonnegotiable, the courtmay require security. The court may also order payment of the bailee's reasonable costs andattorney's fees in any action under this Subsection (1).
(2) A bailee that, without a court order, delivers goods to a person claiming under amissing negotiable document of title is liable to any person injured thereby. If the delivery is notin good faith, the bailee is liable for conversion. Delivery in good faith is not conversion if theclaimant posts security with the bailee in an amount at least double the value of the goods at thetime of posting to indemnify any person injured by the delivery which files a notice of claimwithin one year after the delivery.
Enacted by Chapter 42, 2006 General Session