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.
HISTORY: 1962 Code Section 10.7-603; 1966 (54) 2716; 2014 Act No. 213 (S.343), Section 2, eff October 1, 2014.
OFFICIAL 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 reference:
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.
Editor's Note
2014 Act No. 213, Section 51, provides as follows:
"SECTION 51. This act becomes effective on October 1, 2014. It applies to transactions entered into and events occurring after that date."
Structure South Carolina Code of Laws
Chapter 7 - Commercial Code - Warehouse Receipts, Bills Of Lading And Other Documents Of Title
Section 36-7-101. Short title.
Section 36-7-102. Definitions and index of definitions.
Section 36-7-103. Relation of chapter to treaty, statute, tariff, classification or regulation.
Section 36-7-105. Reissuance in alternative medium.
Section 36-7-106. Control of electronic document of title.
Section 36-7-201. Who may issue a warehouse receipt; storage under government bond.
Section 36-7-202. Form of warehouse receipt; essential terms; optional terms.
Section 36-7-203. Liability for nonreceipt or misdescription.
Section 36-7-204. Duty of care; contractual limitation of warehouse's liability.
Section 36-7-205. Title under warehouse receipt defeated in certain cases.
Section 36-7-206. Termination of storage at warehouse's option.
Section 36-7-207. Goods must be kept separate; fungible goods.
Section 36-7-208. Altered warehouse receipts.
Section 36-7-209. Lien of warehouse.
Section 36-7-210. Enforcement of warehouse's Lien.
Section 36-7-302. Through bills of lading and similar documents.
Section 36-7-303. Diversion; reconsignment; change of instructions.
Section 36-7-304. Tangible bills of lading in a set.
Section 36-7-305. Destination bills.
Section 36-7-306. Altered bills of lading.
Section 36-7-307. Lien of carrier.
Section 36-7-308. Enforcement of carrier's lien.
Section 36-7-309. Duty of care; contractual limitation of carrier's liability.
Section 36-7-401. Irregularities in issue of receipt or bill or conduct of issuer.
Section 36-7-402. Duplicate document of title; overissue.
Section 36-7-403. Obligation of bailee to deliver; excuse.
Section 36-7-404. No liability for good-faith delivery pursuant to document of title.
Section 36-7-501. Form of negotiation and requirements of "due negotiation".
Section 36-7-502. Rights acquired by due negotiation.
Section 36-7-503. Document of title to goods defeated in certain cases.
Section 36-7-505. Indorser not a guarantor for other parties.
Section 36-7-506. Delivery without indorsement; right to compel indorsement.
Section 36-7-507. Warranties on negotiation or delivery of document of title.
Section 36-7-508. Warranties of collecting bank as to documents of title.
Section 36-7-509. Adequate compliance with commercial contract.
Section 36-7-601. Lost, stolen, or destroyed documents of title.
Section 36-7-602. Judicial process against goods covered by negotiable document of title.