Okla. Stat. tit. 12A § 7-601

Current through Laws 2024, c. 453.

Section 7-601 - Lost, stolen, or destroyed documents of title

(a) If a document has been 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 not negotiable, the court may require security. The court may also order payment of the bailee's reasonable costs and attorney fees in any action under this section.

(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 which files a notice of claim within one (1) year after the delivery.

Okla. Stat. tit. 12A, § 7-601

Laws 1961, p. 151, § 7-601; Amended by Laws 2005 , HB 2035, c. 140, § 37, eff. 1/1/2006.

Oklahoma Code Comment

Prior Statutory Provisions:

2 O.S. §§ 9-29, 9-30, 9-73, 9-113.

Text and derivation of prior provisions, see Appendix at end of this title.

Comment:

( 1) This somewhat changes previous Oklahoma law as in the prior statutory provisions. A court may order delivery of the goods or issuance of a substitute document. Under Section 7-402 a duplicate issued without court order, does not confer title to the goods represented by an outstanding document, and the issuer must mark the document "Duplicate" to avoid personal liability.

Former 2 O.S. § 9-73 contained provisions for judicial action to compel the delivery of the goods, but not for the issuance of a substitute document, and was limited to cases in which the original receipt was lost or destroyed. The Commercial Code extends the remedy to stolen documents.

There is no previous Oklahoma law on duplicate or substitute bills of lading.

(2) Former 2 O.S. § 9-113 imposed heavy criminal sanctions [maximum of 20 years imprisonment and $10,000 fine] upon a warehouseman who delivered goods without surrender of the receipt. This had been held applicable in some states, but not all, even though the bailee in good faith delivered to one claiming the original receipt had been lost, and even though the one taking possession posted sufficient security to protect the owner of the receipt .

This Section of the Code is to avoid the harsh results of those cases: a bailee is permitted to deliver the goods to one claiming under a missing document. However, if he delivers in bad faith, the bailee is liable to the true owner in conversion, but if delivery is made in good faith, he is liable only for damages caused by the misdelivery.