Obligation of warehouse or carrier to deliver; excuse

407.403 Obligation of warehouse or carrier to deliver; excuse. (1) A bailee shall deliver the goods to a person entitled under a document of title if the person complies with subs. (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) Damage 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 s. 402.705 or by a lessor of its right to stop delivery pursuant to s. 411.526. (e) A diversion, reconsignment, or other disposition pursuant to s. 407.303. (f) Release, satisfaction, or any other fact affording a 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 the bailee is prohibited by law from delivering the goods until the charges are paid. (3) Unless a person claiming the goods is one against which the document of title does not confer a right under s. 407.503 (1), all 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 be liable to any person to which the document is duly negotiated. History: 2009 a. 322. of the document to another person. Endorsement by the named person is not required to negotiate the document. (b) If the document’s original terms run to the order of a named person and the named person has control of the document, the effect is the same as if the document had been negotiated. (c) A document is duly negotiated if it is negotiated in the manner stated in this subsection to a holder that purchases it in good faith, without notice of any defense against or claim to it on the part of any person, and for value, unless it is established that the negotiation is not in the regular course of business or financing or involves taking delivery of the document in settlement or payment of a monetary obligation. (3) Endorsement of a nonnegotiable document of title neither makes it negotiable nor adds to the transferee’s rights. (4) The naming in a negotiable bill of lading of a person to be notified of the arrival of the goods does not limit the negotiability of the bill or constitute notice to a purchaser of the bill of any interest of that person in the goods. History: 2009 a. 322.