Michigan Laws 440.7403 – Delivery; exceptions; satisfaction of bailee’s lien; cancellation or indication of partial delivery
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Terms Used In Michigan Laws 440.7403
- Bailee: means a person that by a warehouse receipt, bill of lading, or other document of title acknowledges possession of goods and contracts to deliver them. See Michigan Laws 440.7102
- Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
- Delivery: means either of the following:
(i) With respect to an electronic document of title, a voluntary transfer of control. See Michigan Laws 440.1201Document of title: means a record that in the regular course of business or financing is treated as adequately evidencing that the person in possession or control of the record is entitled to receive, control, hold, and dispose of the record and the goods the record covers and that purports to be issued by or addressed to a bailee and to cover goods in the bailee's possession which are either identified or are fungible portions of an identified mass. See Michigan Laws 440.1201 Goods: means all things that are treated as movable for the purposes of a contract for storage or transportation. See Michigan Laws 440.7102 Lien: A claim against real or personal property in satisfaction of a debt. Person: means an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, government, governmental subdivision, agency, or instrumentality, public corporation, or any other legal or commercial entity. See Michigan Laws 440.1201 Right: includes remedy. See Michigan Laws 440.1201 Warehouse: means a person engaged in the business of storing goods for hire. See Michigan Laws 440.7102
(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:
(a) Delivery of the goods to a person whose receipt was rightful as against the claimant.
(b) Damages to or delay, loss, or destruction of the goods for which the bailee is not liable.
(c) Previous sale or other disposition of the goods in lawful enforcement of a lien or on a warehouse‘s lawful termination of storage.
(d) The exercise by a seller of its right to stop delivery pursuant to section 2705 or by a lessor of its right to stop delivery pursuant to section 2A526.
(e) A diversion, reconsignment, or other disposition pursuant to section 7303.
(f) Release, satisfaction, or any other personal defense against the claimant.
(g) 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 section 7503(1), both of the following apply:
(a) 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.
(b) 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.