Standing to sue third parties for injury to goods

84-2a-531. Standing to sue third parties for injury to goods. (1) If a third party so deals with goods that have been identified to a lease contract as to cause actionable injury to a party to the lease contract (a) the lessor has a right of action against the third party, and (b) the lessee also has a right of action against the third party if the lessee: (i) Has a security interest in the goods; (ii) has an insurable interest in the goods; or (iii) bears the risk of loss under the lease contract or has since the injury assumed that risk as against the lessor and the goods have been converted or destroyed. (2) If at the time of the injury the party plaintiff did not bear the risk of loss as against the other party to the lease contract and there is no arrangement between them for disposition of the recovery, such party plaintiff's suit or settlement, subject to such party plaintiff's own interest, is as a fiduciary for the other party to the lease contract. (3) Either party with the consent of the other may sue for the benefit of whom it may concern. History: L. 1991, ch. 295, § 79; February 1, 1992. KANSAS COMMENT, 1996 This section determines the real party in interest when goods identified to a lease contract have been damaged by a third party, and is based on section 84-2-722. Paragraph (1)(a) provides that the lessor always has a right of action against the third party. Paragraph (1)(b) provides that the lessee also has a right of action when it has a security interest or an insurable interest in the goods or if it bears the risk of loss. Under subsection (2), a party who did not bear the risk of loss holds any recovery, subject to its own interest, in trust for the other party.