Nebraska Uniform Commercial Code 7-603

UCC 7-603

7-603.

Conflicting claims; interpleader.

If more than one person claims title to or possession of the goods, the bailee is excused from delivery until the bailee has a reasonable time to ascertain the validity of the adverse claims or to commence an action for interpleader. The bailee may assert an interpleader either in defending an action for nondelivery of the goods or by original action.

Annotations

  • COMMENT

  • Prior Uniform Statutory Provisions: Former section 7-603.

  • Changes: Changes for style only.

  • Purposes:

  • 1. The section enables a bailee faced with conflicting claims to the goods to compel the claimants to litigate their claims with each other rather than with the bailee. The bailee is protected from legal liability when the bailee complies with court orders from the interpleader. See e.g. Northwestern National Sales, Inc. v. Commercial Cold Storage, Inc., 162 Ga. App. 741, 293 S.E.2d. 30 (1982).

  • 2. This section allows the bailee to bring an interpleader action but does not provide an exclusive basis for allowing interpleader. If either state or federal procedural rules allow an interpleader in other situations, the bailee may commence an interpleader under those rules. Even in an interpleader to which this section applies, the state or federal process of interpleader applies to the bailee's action for interpleader. For example, state or federal interpleader statutes or rules may permit a bailee to protect its lien or to seek attorney's fees and costs in the interpleader action.

  • Cross references:

  • Point 1: Section 7-403.

  • Definitional Cross References:

  • "Action". Section 1-201.

  • "Bailee". Section 7-102.

  • "Delivery". Section 1-201.

  • "Goods". Section 7-102.

  • "Person". Section 1-201.

  • "Reasonable time". Section 1-205.