§271-28.5 - Motor carrier lien.
[§271-28.5] Motor carrier lien. (a)
In addition to the lien provided by section 490:7-307, a carrier has a lien on
freight in its possession for the total amount owed the carrier by the shipper
for freightage, charges for services and advances due on freight previously
delivered upon the promise of the shipper to pay freightage, charges and
advances, as provided in this section.
(b) The lien provided by this section shall
not arise:
(1) Unless the carrier has given the shipper and the
consignee ten days notice in writing, that failure to pay billed charges may
result in a lien on future shipments; or
(2) As to any freight which consists of perishable
goods; or
(3) As to any freight, the freight charges for which
have been prepaid by the consignee or the intended recipient; or
(4) As to any freight, if the applicable charges were
paid to a third party legally obligated to remit the payment to the carrier but
the amount due has not been received by the carrier; or
(5) As to any property legally owned by anyone other
than the debtor, or as to which the current identity of the owner is unknown.
(c) Except as otherwise provided in this
section, the notice and sale provisions of section 490:7-308, shall apply to
the sale of property subject to a lien provided by this section.
(d) No sale of property subject to a lien
provided by this section may take place for at least thirty-five days from the
date that possession of the property is delivered to the carrier but the notice
period set forth in section 490:7-308 may run concurrently with the
thirty-five-day period provided by this [subsection]. In addition to the
notices required by section 490:7-308, the lienholder, at least ten days prior
to any sale of the property, shall notify the shipper and the consignee of the
property, and each secured party having a perfected security interest in the
property, of the date, time and place of the intended sale. This notice shall
include the names of both the shipper and the consignee and shall describe the
property to be sold.
(e) Any perfected security interest in the
property is prior to the lien provided by this section. No sale of the
property may be concluded if the amount bid at the sale is not at least equal
to the total amount of all outstanding obligations secured by a perfected
security interest in the property. If the minimum bid required for the sale of
property pursuant to this [subsection] is not received, the lienholder shall
promptly release the property to the legal owner upon payment of the current
amount for freightage, charges for services and advances due for shipment of
that property, not including amounts due on freight previously delivered.
The proceeds of the sale shall be applied as
follows:
(1) First, to secured parties having a perfected
security interest, in the amounts to which they are respectively entitled.
(2) Second, to the discharge of the lien provided by
this section.
(3) The remainder, if any, to the legal owner of the
property.
In the event of any violation by the lienholder
of any provision of this [subsection] the lienholder shall be liable to any
secured party for all damages sustained by the secured party as a result
thereof plus all expenses reasonably and necessarily incurred in the
enforcement of the secured party's rights, including reasonable attorney's fees
and costs of suit.
(f) The shipper shall be liable to the
consignee for any damage which results from the failure of the property to
reach the consignee as scheduled due to the carrier's proper exercise of its
lien rights pursuant to this section.
(g) The carrier shall be liable to the
consignee for any damage which results from the failure of the property to
reach the consignee as scheduled due to the carrier's violation or misuse of
any lien obtained under this section. The measure of damages shall be
determined as set forth in section 490:2-713. [L 1986, c 203, §1]