N.D. Cent. Code § 41-07-28
(7-403) Obligation of bailee to deliver - Excuse
Redline — December 1, 2021 → current.View current text →
Current — January 1, 2022
As of December 1, 2021
(1) A bailee shall deliver the goods to a person entitled under a document of title if the person complies with subsections 2 and 3 unless and to the extent that the bailee establishes any of the following: Delivery of the goods to a person whose receipt was rightful as against the claimant;
(1) A bailee shall deliver the goods to a person entitled under a document of title if the person complies with subsections 2 and 3 unless and to the extent that the bailee establishes any of the following: 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;
(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;
(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 section 41-02-84 or by a lessor of its right to stop delivery pursuant to section 41-02.1-74;
(4) The exercise by a seller of its right to stop delivery pursuant to section 41-02-84 or by a lessor of its right to stop delivery pursuant to section 41-02.1-74;
(5) A diversion, reconsignment, or other disposition pursuant to section 41-07-19;
(5) A diversion, reconsignment, or other disposition pursuant to section 41-07-19;
(6) Release, satisfaction, or any other personal defense against the claimant; or
(6) Release, satisfaction, or any other personal defense against the claimant; or
(7) Any other lawful excuse.
(7) Any other lawful excuse.
(8) 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.
(8) 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.
(9) Unless a person claiming the goods is a person against which the document of title does not confer a right under subsection 1 of section 41-07-32: 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
(9) Unless a person claiming the goods is a person against which the document of title does not confer a right under subsection 1 of section 41-07-32: 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
(10) 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.
(10) 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.
(11) As under former Section 7-403, there is no requirement that a request for delivery must be accompanied by a formal tender of the amount of the charges due. Rather, the bailee must request payment of the amount of its lien when asked to deliver, and only in case this request is refused is it justified in declining to deliver because of nonpayment of charges. Where delivery without payment is forbidden by law, the request is treated as implicit. Such a prohibition reflects a policy of uniformity to prevent discrimination by failure to request payment in particular cases. Subsection (b) must be read in conjunction with the priorities given to the warehouse lien and the carrier lien under Section 7-209 and 7-307, respectively. If the parties are in dispute about whether the request for payment of the lien is legally proper, the bailee may have recourse to interpleader. See Section 7-603.
(12) Subsection (c) states the obvious duty of a bailee to take up a negotiable document or note partial deliveries conspicuously thereon, and the result of failure in that duty. It is subject to only one exception, that stated in subsection (a)(1) of this section and in Section 7-503(a). Subsection (c) is limited to cases of delivery to a claimant; it has no application, for example, where goods held under a negotiable document are lawfully sold to enforce the bailee’s lien.
(13) When courts are considering subsection (a)(7), “any other lawful excuse,” among others, refers to compliance with court orders under Sections 7-601, 7-602 and 7-603.
Official source: North Dakota Legislative Branch. Reproduced from public-domain North Dakota statutes; confirm against the official source for the current text. Not legal advice.