§490:7-308 - Enforcement of carrier's lien.
§490:7-308 Enforcement of carrier's lien.
(a) A carrier's lien on goods may be enforced by public or private sale of the
goods, in bulk or in packages, at any time or place and on any terms that are
commercially reasonable, after notifying all persons known to claim an interest
in the goods. The notification must include a statement of the amount due, the
nature of the proposed sale, and the time and place of any public sale. The
fact that a better price could have been obtained by a sale at a different time
or in a method different from that selected by the carrier is not of itself
sufficient to establish that the sale was not made in a commercially reasonable
manner. The carrier sells goods in a commercially reasonable manner if the
carrier sells the goods in the usual manner in any recognized market therefor,
sells at the price current in that market at the time of the sale, or otherwise
sells in conformity with commercially reasonable practices among dealers in the
type of goods sold. A sale of more goods than apparently necessary to be
offered to ensure satisfaction of the obligation is not commercially
reasonable, except in cases covered by the preceding sentence.
(b) Before any sale pursuant to this section,
any person claiming a right in the goods may pay the amount necessary to
satisfy the lien and the reasonable expenses incurred in complying with this
section. In that event, the goods may not be sold but must be retained by the
carrier, subject to the terms of the bill of lading and this article.
(c) A carrier may buy at any public sale
pursuant to this section.
(d) A purchaser in good faith of goods sold to
enforce a carrier's lien takes the goods free of any rights of persons against
which the lien was valid, despite the carrier's noncompliance with this
section.
(e) A carrier may satisfy its lien from the
proceeds of any sale pursuant to this section but shall hold the balance, if
any, for delivery on demand to any person to which the carrier would have been
bound to deliver the goods.
(f) The rights provided by this section are in
addition to all other rights allowed by law to a creditor against a debtor.
(g) A carrier's lien may be enforced pursuant
to either subsection (a) or the procedure set forth in section 490:7-210(b).
(h) A carrier is liable for damages caused by
failure to comply with the requirements for sale under this section and, in
case of wilful violation, is liable for conversion. [L 2004, c 163, pt of §1]