§ 25-7-601. Lost, stolen, or destroyed documents of title. - North Carolina Statutes

PART 6.

WAREHOUSE RECEIPTS AND BILLS OFLADING: MISCELLANEOUS PROVISIONS.

§ 25‑7‑601.  Lost,stolen, or destroyed documents of title.

(a)        If a document oftitle is lost, stolen, or destroyed, a court may order delivery of the goods orissuance of a substitute document, and the bailee may without liability to anyperson comply with the order. If the document was negotiable, a court may notorder delivery of the goods or issuance of a substitute document without theclaimant's posting security unless it finds that any person that may sufferloss as a result of nonsurrender of possession or control of the document isadequately protected against the loss. If the document was nonnegotiable, thecourt may require security. The court may also order payment of the bailee'sreasonable costs and attorneys' fees in any action under this subsection.

(b)        A bailee that,without a court order, delivers goods to a person claiming under a missingnegotiable document of title is liable to any person injured thereby. If the deliveryis not in good faith, the bailee is liable for conversion. Delivery in goodfaith is not conversion if the claimant posts security with the bailee in anamount at least double the value of the goods at the time of posting toindemnify any person injured by the delivery that files a notice of claimwithin one year after the delivery. (1917, c. 37, ss. 11, 14; 1919, c. 65, ss. 11, 14;C.S., ss. 293, 296, 4051, 4054; 1965, c. 700, s. 1; 2006‑112, s. 25.)