Goods Shall Be Kept Separate; Fungible Goods

  1. Law
  2. Georgia Code
  3. Commercial Code
  4. Warehouse Receipts, Bills of Lading, and Other Documents of Title
  5. Warehouse Receipts: Special Provisions
  6. Goods Shall Be Kept Separate; Fungible Goods

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  1. Unless the warehouse receipt provides otherwise, a warehouse shall keep separate the goods covered by each receipt so as to permit at all times identification and delivery of those goods. However, different lots of fungible goods may be commingled.
  2. If different lots of fungible goods are commingled, the goods are owned in common by the persons entitled thereto and the warehouse is severally liable to each owner for that owner's share. If, because of overissue, a mass of fungible goods is insufficient to meet all the receipts the warehouse has issued against it, the persons entitled include all holders to whom overissued receipts have been duly negotiated.

(Code 1933, § 109A-7 - 207, enacted by Ga. L. 1962, p. 156, § 1; Ga. L. 2010, p. 481, § 1-1/HB 451.)

The 2010 amendment, effective May 27, 2010, substituted "shall" for "must" in the catchline; redesignated former subsections (1) and (2) as present subsections (a) and (b), respectively; in present subsection (a), substituted "provides otherwise, a warehouse shall" for "otherwise provides, a warehouseman must" near the beginning and substituted "goods. However," for "goods except that" near the end; and, in present subsection (b), in the first sentence, substituted "If different lots of fungible goods are commingled, the goods" for "Fungible goods so commingled" near the beginning and substituted "warehouse" for "warehouseman", and, in the second sentence, substituted "If, because of overissue," for "Where because of overissue" near the beginning and substituted "the warehouse" for "which the warehouseman" in the middle. See the Editor's notes for applicability.

Editor's notes.

- Ga. L. 2010, p. 481, § 3-1, not codified by the General Assembly, provides that: "This Act applies to a document of title that is issued or a bailment that arises on or after the effective date of this Act. This Act does not apply to a document of title that is issued or a bailment that arises before the effective date of this Act even if the document of title or bailment would be subject to this Act if the document of title had been issued or bailment had arisen on or after the effective date of this Act. This Act does not apply to a right of action that has accrued before the effective date of this Act." This Act became effective May 27, 2010.

Ga. L. 2010, p. 481, § 3-2, not codified by the General Assembly, provides that: "A document of title issued or a bailment that arises before the effective date of this Act and the rights, documents, and interests flowing from that document or bailment are governed by any statute or other rule amended or repealed by this Act as if such amendment or repeal had not occurred and may be terminated, completed, consummated, or enforced under that statute or other rule." This Act became effective May 27, 2010.

JUDICIAL DECISIONS

Depletion of fungible goods without fault of warehouseman.

- Prima facie case of receipt holder made by nondelivery is completely overcome by showing that quantity of fungible goods has been depleted without fault upon part of warehousemen. Citizens Bank & Trust Co. v. SLT Whse. Co., 368 F. Supp. 1042 (M.D. Ga. 1974), aff'd, 515 F.2d 1382 (5th Cir. 1975).

RESEARCH REFERENCES

Am. Jur. 2d.

- 15A Am. Jur. 2d, Commercial Code, § 44. 78 Am. Jur. 2d, Warehouses, §§ 39, 179, 181, 228.

C.J.S.

- 93 C.J.S., Warehousemen and Safe Depositaries, § 13 et seq.

U.L.A.

- Uniform Commercial Code (U.L.A.) § 7-207.


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