Enforcement of Carrier's Lien

  1. Law
  2. Georgia Code
  3. Commercial Code
  4. Warehouse Receipts, Bills of Lading, and Other Documents of Title
  5. Bills of Lading: Special Provisions
  6. Enforcement of Carrier's Lien

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  1. A carrier's lien on goods may be enforced by public or private sale of the goods, in bulk or in packages, at any time or place and on any terms that are commercially reasonable, after notifying all persons known to claim an interest in the goods. The notification shall include a statement of the amount due, the nature of the proposed sale, and the time and place of any public sale. The fact that a better price could have been obtained by a sale at a different time or in a method different from that selected by the carrier is not of itself sufficient to establish that the sale was not made in a commercially reasonable manner. The carrier sells goods in a commercially reasonable manner if the carrier sells the goods in the usual manner in any recognized market therefor, sells at the price current in that market at the time of the sale, or otherwise sells in conformity with commercially reasonable practices among dealers in the type of goods sold. A sale of more goods than apparently necessary to be offered to ensure satisfaction of the obligation is not commercially reasonable, except in cases covered by the preceding sentence.
  2. Before any sale pursuant to this Code section, any person claiming a right in the goods may pay the amount necessary to satisfy the lien and the reasonable expenses incurred in complying with this Code section. In that event, the goods may not be sold but shall be retained by the carrier, subject to the terms of the bill of lading and this article.
  3. The carrier may buy at any public sale pursuant to this Code section.
  4. A purchaser in good faith of goods sold to enforce a carrier's lien takes the goods free of any rights of persons against which the lien was valid, despite the carrier's noncompliance with this Code section.
  5. A carrier may satisfy its lien from the proceeds of any sale pursuant to this Code section but shall hold the balance, if any, for delivery on demand to any person to which the carrier would have been bound to deliver the goods.
  6. The rights provided by this Code section are in addition to all other rights allowed by law to a creditor against a debtor.
  7. A carrier's lien may be enforced pursuant to either subsection (a) of this Code section or the procedure set forth in subsection (b) of Code Section 11-7-210.
  8. A carrier is liable for damages caused by failure to comply with the requirements for sale under this Code section and, in case of willful violation, is liable for conversion.

(Code 1933, § 109A-7 - 308, enacted by Ga. L. 1962, p. 156, § 1; Ga. L. 2010, p. 481, § 1-1/HB 451.)

The 2010 amendment, effective May 27, 2010, rewrote this Code section. See the Editor's notes for applicability.

Cross references.

- For further provisions regarding carriers' liens, see § 46-9-190 et seq.

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

Enforcement procedure coextensive with that of warehouseman.

- O.C.G.A. § 11-7-308 is intended to give carrier an enforcement procedure of its lien coextensive with that of warehouseman. REA Express, Inc. v. Ginn, 131 Ga. App. 33, 205 S.E.2d 94 (1974).

Purpose of subsection (4).

- Provisions of O.C.G.A. § 11-7-308(4) are intended to confirm title of good-faith purchasers at foreclosure sales and to secure more bidding and better prices. REA Express, Inc. v. Ginn, 131 Ga. App. 33, 205 S.E.2d 94 (1974).

RESEARCH REFERENCES

Am. Jur. 2d.

- 13 Am. Jur. 2d, Carriers, § 533.

C.J.S.

- 13 C.J.S., Carriers, § 484. 80 C.J.S., Shipping, §§ 377, 378.

U.L.A.

- Uniform Commercial Code (U.L.A.) § 7-308.

ALR.

- Necessity of notice to consignor to render him liable for demurrage, 32 A.L.R. 642.

Validity, construction, and application of state statute giving carrier lien on goods for transportation and incidental charges, 45 A.L.R.5th 227.


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