Lost, Stolen, or Destroyed Documents of Title

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: Miscellaneous Provisions
6. Lost, Stolen, or Destroyed Documents of Title

1. If a document of title is 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 the 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 nonnegotiable, the court may require security. The court may also order payment of the bailee's reasonable costs and attorney's fees in any action under this subsection.
2. A bailee that, without a 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 year after the delivery.

(Code 1933, § 109A-7 - 601, 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 "Lost, stolen, or destroyed documents of title" for "Lost and missing documents" in the catchline; redesignated former subsections (1) and (2) as present subsections (a) and (b), respectively; rewrote present subsection (a); and, in present subsection (b), substituted "that, without a court order," for "who without court order" near the beginning, inserted "of title", substituted "thereby. If the delivery" for "thereby, and if the delivery", and substituted ", the bailee is" for "becomes", and, in the present last sentence, deleted "made in accordance with a filed classification or tariff or, where no classification or tariff is filed, if" preceding "the claimant" and substituted "which files" for "who files" near the end. See the Editor's notes for applicability.

Cross references.

- Establishment of lost documents generally, Ch. 8, T. 24.

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.

RESEARCH REFERENCES

Am. Jur. 2d.

- 13 Am. Jur. 2d, Carriers, § 462. 15A Am. Jur. 2d, Commercial Code, §§ 39, 44, 117. 78 Am. Jur. 2d, Warehouses, § 220.

C.J.S.

- 54 C.J.S., Lost Instruments, § 3.

U.L.A.

- Uniform Commercial Code (U.L.A.) § 7-601.

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