- Draft Uniform Documents of Title Act 1995
- PART 1 - WAREHOUSE RECEIPTS: SPECIAL PROVISIONS
- PART 2 - BILLS OF LADING: SPECIAL PROVISIONS
- PART 3 - WAREHOUSE RECEIPTS AND BILLS OF LADING:
- PART 4 - WAREHOUSE RECEIPTS AND BILLS OF LADING:
- PART 5 - WAREHOUSE RECEIPTS AND BILLS OF LADING:
- PART 6 - REPEAL
- All Pages
PART 5 - WAREHOUSE RECEIPTS AND BILLS OF LADING:
Lost and missing documents
24 (1) 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 that order.
(2) If the document mentioned in subsection (1)
(a) was negotiable, the claimant must post security approved by the court to indemnify any person who may suffer loss as a result of non-surrender of the document, or
(b) was not negotiable, the claimant must post any security that the court, in its discretion may require.
(3) A bailee, who without an order of the court, delivers goods to a person claiming under a missing negotiable document is liable to any person injured thereby.
(4) Where delivery by a bailee under subsection (3) is not in good faith, the bailee is liable for conversion.
UCC 7-601; UWRA (Can.), s.9.
1. This provision authorizes a court order for issuance of a substitute document or for delivery of the goods. Section 9 of the UWRA (Can.) provided only for an order for delivery of the goods and only in respect of a negotiable document of title. There is no reason in principle why an order for compulsory issuance of a substitute document should not be available if a continuation of the bailment is desired. Claimants under non-negotiable documents of title are also permitted to invoke this procedure since straight bills of lading and other non-negotiable documents may sometimes provide that the goods shall not be delivered except upon production of the document. Although in the ordinary case no order for security would be needed, in the case of loss of a non-negotiable document, the court has the discretion to do so. This discretion might be exercised where there was some controversy over the negotiability of the document.
2. If the bailee chooses to deliver without a court order, the bailee remains liable for any loss caused but is not liable in conversion unless the bailee acted in bad faith.
Attachment of goods covered by a negotiable document
25 Where goods are delivered to a bailee by the owner or a person with a power of disposition over the goods and a negotiable document of title is issued for them, while they are in the possession of the bailee, the goods cannot be levied under execution, unless the document of title is surrendered to the bailee.
UWRA (Can.), s. 15; UCC 7-602.
The provision is substantially the same as section 15 of the UWRA (Can.) except that it is extended to cover all negotiable documents of title. Once a negotiable document of title is issued, the only way to levy execution against the goods is through seizure of the document of title. The provision does not apply where the goods are attached under legal process prior to the issuance of a negotiable document of title.
Conflicting claims: interpleader
26 If more than one person claims title or possession of the goods, the bailee
(a) is excused from delivery until the bailee has had a reasonable time to ascertain the validity of the adverse claims or to bring an action to compel all claimants to interplead; and
(b) may compel an interpleader, either in defending an action for non-delivery of the goods, or by original action, whichever is appropriate.
UCC 7-603; UWRA (Can.), s. 10
The provision is simply a restatement of section 10 of the UWRA (Can.) extended to cover all forms of documents of title. It enables a bailee faced with conflicting claims to goods to compel the claimants to litigate with each other.