Obligation of Bailee to Deliver; Excuse

1. Law
2. Georgia Code
3. Commercial Code
4. Warehouse Receipts, Bills of Lading, and Other Documents of Title
5. Warehouse Receipts and Bills of Lading: General Obligations
6. Obligation of Bailee to Deliver; Excuse

1. A bailee shall deliver the goods to a person entitled under a document of title if the person complies with subsections (b) and (c) of this Code section, unless and to the extent that the bailee establishes any of the following:
   1. Delivery of the goods to a person whose receipt was rightful as against the claimant;
   2. Damage to or delay, loss, or destruction of the goods for which the bailee is not liable;
   3. Previous sale or other disposition of the goods in lawful enforcement of a lien or on a warehouse's lawful termination of storage;
   4. The exercise by a seller of its right to stop delivery pursuant to Code Section 11-2-705 or by a lessor of its right to stop delivery pursuant to Code Section 11-2A-526;
   5. A diversion, reconsignment, or other disposition pursuant to Code Section 11-7-303;
   6. Release, satisfaction, or any other personal defense against the claimant; or
   7. Any other lawful excuse.
2. A person claiming goods covered by a document of title shall satisfy the bailee's lien if the bailee so requests or if the bailee is prohibited by law from delivering the goods until the charges are paid.
3. Unless a person claiming the goods is a person against which the document of title does not confer a right under subsection (a) of Code Section 11-7-503:
   1. The person claiming under a document shall surrender possession or control of any outstanding negotiable document covering the goods for cancellation or indication of partial deliveries; and
   2. The bailee shall cancel the document or conspicuously indicate in the document the partial delivery or the bailee is liable to any person to which the document is duly negotiated.

(Code 1933, § 109A-7 - 403, 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 "bailee" for "warehouseman or carrier" in the catchline; redesignated former paragraphs (1) through (3) as present subsections (a) through (c), respectively; rewrote present subsection (a); in present subsection (b), substituted "shall" for "must" and substituted "if" for "where" twice; rewrote present subsection (c); and deleted former subsection (4), which read: "'Person entitled under the document' means holder in the case of a negotiable document, or the person to whom delivery is to be made by the terms of or pursuant to written instructions under a nonnegotiable document." 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

Protection of bona fide purchaser of warehouse receipt.

- A bona fide purchaser of negotiable warehouse receipt obtains full protection of Uniform Commercial Code only if purchaser obtains negotiable receipt by due negotiation. 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.

- 8A Am. Jur. 2d, Bailments, § 225. 13 Am. Jur. 2d, Carriers, §§ 460, 463, 473. 78 Am. Jur. 2d, Warehouses, §§ 38, 201, 212, 217, 219, 255, 293.

C.J.S.

- 13 C.J.S., Carriers, §§ 394, 484. 80 C.J.S., Shipping, §§ 260 et seq., 377, 378. 93 C.J.S., Warehousemen and Safe Depositaries, §§ 41 et seq., 109.

U.L.A.

- Uniform Commercial Code (U.L.A.) § 7-403.

ALR.

- Assumption of risk and contributory negligence in connection with injuries arising from improper manner of loading or fastening load on freight car, 106 A.L.R. 1140.

Duty of warehouseman to take up and cancel negotiable receipt upon delivering goods as delegable or nondelegable, 139 A.L.R. 1488.

Initial carrier's liability as that of carrier or of warehouseman in respect of goods while in its warehouse awaiting delivery to connecting carrier, 172 A.L.R. 802.

Deviation by carrier in transportation of property, 33 A.L.R.2d 145.

Presumption and burden of proof where subject of bailment is destroyed or damaged by windstorm or other meteorological phenomena, 43 A.L.R.3d 607.

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