State Codes and Statutes

Statutes > Wisconsin > 407 > 407.603

407.603

407.603 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.

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History: 2009 a. 322.

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NOTE: Chapter 407 is shown as repealed and recreated eff. 8-1-10 by 2009 Wis. Act 322. Prior to 8-1-10 it reads:

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SUBCHAPTER I

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GENERAL

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407.101 Short title. This chapter shall be known and may be cited as uniform commercial codedocuments of title.

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407.102 Definitions and index of definitions. (1) In this chapter, unless the context otherwise requires:

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(a) "Bailee" means the person who by a warehouse receipt, bill of lading or other document of title acknowledges possession of goods and contracts to deliver them.

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(b) "Consignee" means the person named in a bill to whom or to whose order the bill promises delivery.

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(c) "Consignor" means the person named in a bill as the person from whom the goods have been received for shipment.

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(d) "Delivery order" means a written order to deliver goods directed to a warehouse keeper, carrier or other person who in the ordinary course of business issues warehouse receipts or bills of lading.

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(e) "Document" means document of title as defined in s. 401.201.

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(f) "Goods" means all things which are treated as movable for the purposes of a contract of storage or transportation.

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(g) "Issuer" means a bailee who issues a document except that in relation to an unaccepted delivery order it means the person who orders the possessor of goods to deliver. Issuer includes any person for whom an agent or employee purports to act in issuing a document if the agent or employee has real or apparent authority to issue documents notwithstanding that the issuer received no goods or that the goods were misdescribed or that in any other respect the agent or employee violated the issuer's instructions.

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(h) "Warehouse keeper" is a person engaged in the business of storing goods for hire.

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(2) Other definitions applying to this chapter or to specified sections thereof, and the sections in which they appear are:

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(a) "Duly negotiate" s. 407.501.

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(b) "Person entitled under the document" s. 407.403 (4).

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(3) Definitions in other chapters applying to this chapter and the sections in which they appear are:

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(a) "Contract for sale" s. 402.106.

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(am) "Lessor" s. 411.103 (1) (p).

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(b) "Overseas" s. 402.323.

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(c) "Receipt" of goods s. 402.103.

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(4) In addition ch. 401 contains general definitions and principles of construction and interpretation applicable throughout this chapter.

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History: 1983 a. 500 s. 43; 1991 a. 148, 316.

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407.103 Relation of chapter to treaty, statute, tariff, classification or regulation; laws not repealed. (1) To the extent that any treaty or statute of the United States, regulatory statute of this state or tariff, classification or regulation filed or issued pursuant thereto is applicable, the provisions of this chapter are subject thereto.

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(2) This chapter does not repeal or modify any laws prescribing the form or contents of documents of title or the services or facilities to be afforded by bailees, or otherwise regulating bailees' businesses in respects not specifically dealt with herein; but the fact that such laws are violated does not affect the status of a document of title which otherwise complies with the definition of a document of title in s. 401.201.

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407.104 Negotiable and nonnegotiable warehouse receipt, bill of lading or other document of title. (1) A warehouse receipt, bill of lading or other document of title is negotiable:

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(a) If by its terms the goods are to be delivered to bearer or to the order of a named person; or

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(b) Where recognized in overseas trade, if it runs to a named person or assigns.

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(2) Any other document is nonnegotiable. A bill of lading in which it is stated that the goods are consigned to a named person is not made negotiable by a provision that the goods are to be delivered only against a written order signed by the same or another named person.

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407.105 Construction against negative implication. The omission from either ss. 407.201 to 407.210 or ss. 407.301 to 407.309 of a provision corresponding to a provision contained in the other group of sections does not imply that a corresponding rule of law is not applicable.

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SUBCHAPTER II

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WAREHOUSE RECEIPTS: SPECIAL PROVISIONS

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407.201 Who may issue a warehouse receipt; storage under government bond. (1) A warehouse receipt may be issued by any warehouse keeper.

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(2) Where goods including distilled spirits and agricultural commodities are stored under a statute requiring a bond against withdrawal or a license for the issuance of receipts in the nature of warehouse receipts, a receipt issued for the goods has like effect as a warehouse receipt even though issued by a person who is the owner of the goods and is not a warehouse keeper.

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History: 1983 a. 500 s. 43.

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407.202 Form of warehouse receipt; essential terms; optional terms. (1) A warehouse receipt need not be in any particular form.

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(2) Unless a warehouse receipt embodies within its written or printed terms each of the following, the warehouse keeper is liable for damages caused by the omission to a person injured thereby:

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(a) The location of the warehouse where the goods are stored;

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(b) The date of issue of the receipt;

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(c) The consecutive number of the receipt;

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(d) A statement whether the goods received will be delivered to the bearer, to a specified person, or to a specified person or the specified person's order;

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(e) The rate of storage and handling charges, except that where goods are stored under a field warehousing arrangement a statement of that fact is sufficient on a nonnegotiable receipt;

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(f) A description of the goods or of the packages containing them;

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(g) The signature of the warehouse keeper, which may be made by the warehouse keeper's authorized agent;

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(h) If the receipt is issued for goods of which the warehouse keeper is owner, either solely or jointly or in common with others, the fact of such ownership; and

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(i) A statement of the amount of advances made and of liabilities incurred for which the warehouse keeper claims a lien or security interest (s. 407.209). If the precise amount of such advances made or of such liabilities incurred is, at the time of the issue of the receipt, unknown to the warehouse keeper or to the warehouse keeper's agent who issues it, a statement of the fact that advances have been made or liabilities incurred and the purpose thereof is sufficient.

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(3) A warehouse keeper may insert in his or her receipt any other terms which are not contrary to chs. 401 to 411 and do not impair his or her obligation of delivery (s. 407.403) or his or her duty of care (s. 407.204). Any contrary provisions are ineffective.

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History: 1979 c. 89; 1983 a. 500 s. 43; 1991 a. 148, 304, 315, 316.

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407.203 Liability for nonreceipt or misdescription. A party to or purchaser for value in good faith of a document of title other than a bill of lading relying in either case upon the description therein of the goods may recover from the issuer damages caused by the nonreceipt or misdescription of the goods, except to the extent that the document conspicuously indicates that the issuer does not know whether any part or all of the goods in fact were received or conform to the description, as where the description is in terms of marks or labels or kind, quantity or condition, or the receipt or description is qualified by "contents, condition and quality unknown", "said to contain" or the like, if such indication be true, or the party or purchaser otherwise has notice.

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407.204 Duty of care; contractual limitation of warehouse keeper's liability. (1) A warehouse keeper is liable for damages for loss of or injury to the goods caused by failure to exercise such care in regard to them as a reasonably careful person would exercise under like circumstances but unless otherwise agreed the warehouse keeper is not liable for damages which could not have been avoided by the exercise of such care.

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(2) Damages may be limited by a conspicuous term in the warehouse receipt or storage agreement limiting the amount of liability in case of loss or damage, and setting forth a specific liability per article or item, or value per unit of weight, beyond which the warehouse keeper shall not be liable; however, such liability may on written request of the bailor at the time of signing such storage agreement or within a reasonable time after receipt of the warehouse receipt be increased on part or all of the goods thereunder, in which event increased rates may be charged based on such increased valuation, but no such increase shall be permitted contrary to a lawful limitation of liability contained in the warehouse keeper's tariff, if any. No such limitation is effective with respect to the warehouse keeper's liability for conversion to the warehouse keeper's own use.

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(3) Reasonable provisions as to the time and manner of presenting claims and instituting actions based on the bailment may be included in the warehouse receipt or tariff.

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History: 1975 c. 94, 200; 1983 a. 500 s. 43; 1991 a. 316.

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407.205 Title under warehouse receipt defeated in certain cases. A buyer in the ordinary course of business of fungible goods sold and delivered by a warehouse keeper who is also in the business of buying and selling such goods takes free of any claim under a warehouse receipt even though it has been duly negotiated.

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History: 1983 a. 500 s. 43.

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407.206 Termination of storage at warehouse keeper's option. (1) A warehouse keeper may on notifying the person on whose account the goods are held and any other person known to claim an interest in the goods require payment of any charges and removal of the goods from the warehouse at the termination of the period of storage fixed by the document, or, if no period is fixed, within a stated period not less than 30 days after the notification. If the goods are not removed before the date specified in the notification, the warehouse keeper may sell them in accordance with s. 407.210 on enforcement of a warehouse keeper's lien.

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(2) If a warehouse keeper in good faith believes that the goods are about to deteriorate or decline in value to less than the amount of the warehouse keeper's lien within the time prescribed in sub. (1) for notification, advertisement and sale, the warehouse keeper may specify in the notification any reasonable shorter time for removal of the goods and in case the goods are not removed, may sell them at public sale held not less than one week after publication of a class 1 notice, under ch. 985.

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(3) If as a result of a quality or condition of the goods of which the warehouse keeper had no notice at the time of deposit the goods are a hazard to other property or to the warehouse or to persons, the warehouse keeper may sell the goods at public or private sale without advertisement on reasonable notification to all persons known to claim an interest in the goods. If the warehouse keeper after a reasonable effort is unable to sell the goods the warehouse keeper may dispose of them in any lawful manner and shall incur no liability by reason of such disposition.

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(4) The warehouse keeper must deliver the goods to any person entitled to them under this chapter upon due demand made at any time prior to sale or other disposition under this section.

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(5) The warehouse keeper may satisfy the warehouse keeper's lien from the proceeds of any sale or disposition under this section but must hold the balance for delivery on the demand of any person to whom the warehouse keeper would have been bound to deliver the goods.

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History: 1983 a. 500 s. 43; 1991 a. 316.

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407.207 Goods must be kept separate; fungible goods. (1) Unless the warehouse receipt otherwise provides, a warehouse keeper must keep separate the goods covered by each receipt so as to permit at all times identification and delivery of those goods except that different lots of fungible goods may be commingled.

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(2) Fungible goods so commingled are owned in common by the persons entitled thereto and the warehouse keeper is severally liable to each owner for that owner's share. Where because of overissue a mass of fungible goods is insufficient to meet all the receipts which the warehouse keeper has issued against it, the persons entitled include all holders to whom overissued receipts have been duly negotiated.

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History: 1983 a. 500 s. 43.

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407.208 Altered warehouse receipts. Where a blank in a negotiable warehouse receipt has been filled in without authority, a purchaser for value and without notice of the want of authority may treat the insertion as authorized. Any other unauthorized alteration leaves any receipt enforceable against the issuer according to its original tenor.

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407.209 Lien of warehouse keeper. (1) A warehouse keeper has a lien against the bailor on the goods covered by a warehouse receipt or on the proceeds thereof in the warehouse keeper's possession for charges for storage or transportation (including demurrage and terminal charges), insurance, labor, or charges present or future in relation to the goods, and for expenses necessary for preservation of the goods or reasonably incurred in their sale pursuant to law. If the person on whose account the goods are held is liable for like charges or expenses in relation to other goods whenever deposited and it is stated in the receipt that a lien is claimed for charges and expenses in relation to other goods, the warehouse keeper also has a lien against that person for such charges and expenses whether or not the other goods have been delivered by the warehouse keeper. But against a person to whom a negotiable warehouse receipt is duly negotiated a warehouse keeper's lien is limited to charges in an amount or at a rate specified on the receipt or if no charges are so specified then to a reasonable charge for storage of the goods covered by the receipt subsequent to the date of the receipt.

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(2) The warehouse keeper may also reserve a security interest against the bailor for a maximum amount specified on the receipt for charges other than those specified in sub. (1), such as for money advanced and interest. Such a security interest is governed by ch. 409.

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(3) A warehouse keeper's lien for charges and expenses under sub. (1) or a security interest under sub. (2) is also effective against any person who so entrusted the bailor with possession of the goods that a pledge of them by the bailor to a good faith purchaser for value would have been valid but is not effective against a person as to whom the document confers no right in the goods covered by it under s. 407.503.

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(4) A warehouse keeper loses the warehouse keeper's lien on any goods which the warehouse keeper voluntarily delivers or unjustifiably refuses to deliver.

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History: 1983 a. 500 s. 43; 1991 a. 316.

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407.210 Enforcement of warehouse keeper's lien. (1) Except as provided in sub. (2), a warehouse keeper's lien may be enforced by public or private sale of the goods in bloc or in parcels, at any time or place and on any terms which are commercially reasonable, after notifying all persons known to claim an interest in the goods. Such 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 different method from that selected by the warehouse keeper is not of itself sufficient to establish that the sale was not made in a commercially reasonable manner. If the warehouse keeper either sells the goods in the usual manner in any recognized market therefor, or at the price current in such market at the time of the sale, or if the warehouse keeper has otherwise sold in conformity with commercially reasonable practices among dealers in the type of goods sold, the warehouse keeper has sold in a commercially reasonable manner. A sale of more goods than apparently necessary to be offered to insure satisfaction of the obligation is not commercially reasonable except in cases covered by the preceding sentence.

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(2) A warehouse keeper's lien on goods, other than goods stored by a merchant in the course of his or her business, may be enforced as provided in sub. (1) if all of the following are satisfied:

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(a) The warehouse keeper notifies all persons known to claim an interest in the goods by delivering in person or sending by registered or certified mail to the last-known address of persons known to claim an interest in the goods the notice specified in par. (b).

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(b) The notice includes an itemized statement of the claim, a description of the goods subject to the lien, a demand for payment within a specified time not less than 30 days after receipt of the notification, and a conspicuous statement that unless the claim is paid within that time the goods will be sold by public or private sale.

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(3) 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 under this section. In that event the goods must not be sold, but must be retained by the warehouse keeper subject to the terms of the receipt and this chapter.

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(4) The warehouse keeper may buy at any public sale pursuant to this section.

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(5) A purchaser in good faith of goods sold to enforce a warehouse keeper's lien takes the goods free of any rights of persons against whom the lien was valid, despite noncompliance by the warehouse keeper with the requirements of this section.

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(6) The warehouse keeper may satisfy the warehouse keeper's lien from the proceeds of any sale pursuant to this section but must hold the balance, if any, for delivery on demand to any person to whom the warehouse keeper would have been bound to deliver the goods.

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(7) The rights provided by this section shall be in addition to all other rights allowed by law to a creditor against the creditor's debtor.

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(8) Where a lien is on goods stored by a merchant in the course of the merchant's business the lien may be enforced in accordance with either sub. (1) or (2).

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(9) The warehouse keeper is liable for damages caused by failure to comply with the requirements for sale under this section and in case of willful violation is liable for conversion.

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History: 1983 a. 500 s. 43; 1987 a. 213; 1991 a. 316.

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A warehouse keeper's proposed sale of goods entrusted to him for storage was not an action properly attributable to the state. Flagg Bros., Inc. v. Brooks, 436 U.S. 149 (1978).

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Warehouse keeper's liens may constitutionally be enforced against tenants dispossessed under s. 299.45, 1977 stats. [now s. 799.45]. Wegwart v. Eagle Movers, Inc. 441 F. Supp. 872 (1977).

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A warehouse keeper's conduct in enforcing liens against a dispossessed tenant was not attributable to the state. Wegwart v. Eagle Movers, Inc. 467 F. Supp. 573 (1979).

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SUBCHAPTER III

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BILLS OF LADING: SPECIAL PROVISIONS

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407.301 Liability for nonreceipt or misdescription; "said to contain"; "shipper's load and count"; improper handling. (1) A consignee of a nonnegotiable bill who has given value in good faith or a holder to whom a negotiable bill has been duly negotiated relying in either case upon the description therein of the goods, or upon the date therein shown, may recover from the issuer damages caused by the misdating of the bill or the nonreceipt or misdescription of the goods, except to the extent that the document indicates that the issuer does not know whether any part or all of the goods in fact were received or conform to the description, as where the description is in terms of marks or labels or kind, quantity, or condition or the receipt or description is qualified by "contents or condition of contents of packages unknown", "said to contain", "shipper's weight, load and count" or the like, if such indication is true.

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(2) When goods are loaded by an issuer who is a common carrier, the issuer must count the packages of goods if package freight and ascertain the kind and quantity if bulk freight. In such cases "shipper's weight, load and count" or other words indicating that the description was made by the shipper are ineffective except as to freight concealed by packages.

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(3) When bulk freight is loaded by a shipper who makes available to the issuer adequate facilities for weighing such freight, an issuer who is a common carrier must ascertain the kind and quantity within a reasonable time after receiving the written request of the shipper to do so. In such cases "shipper's weight" or other words of like purport are ineffective.

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(4) The issuer may by inserting in the bill the words "shipper's weight, load and count" or other words of like purport indicate that the goods were loaded by the shipper; and if such statement is true the issuer shall not be liable for damages caused by the improper loading. But their omission does not imply liability for such damages.

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(5) The shipper shall be deemed to have guaranteed to the issuer the accuracy at the time of shipment of the description, marks, labels, number, kind, quantity, condition and weight, as furnished by the shipper; and the shipper shall indemnify the issuer against damage caused by inaccuracies in such particulars. The right of the issuer to such indemnity shall in no way limit the issuer's responsibility and liability under the contract of carriage to any person other than the shipper.

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History: 1991 a. 316.

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407.302 Through bills of lading and similar documents. (1) The issuer of a through bill of lading or other document embodying an undertaking to be performed in part by persons acting as its agents or by connecting carriers is liable to anyone entitled to recover on the document for any breach by such other persons or by a connecting carrier of its obligation under the document but to the extent that the bill covers an undertaking to be performed overseas or in territory not contiguous to the continental United States or an undertaking including matters other than transportation this liability may be varied by agreement of the parties.

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(2) Where goods covered by a through bill of lading or other document embodying an undertaking to be performed in part by persons other than the issuer are received by any such person, that person is subject with respect to that person's own performance while the goods are in that person's possession to the obligation of the issuer. That person's obligation is discharged by delivery of the goods to another such person pursuant to the document, and does not include liability for breach by any other such persons or by the issuer.

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(3) The issuer of such through bill of lading or other document shall be entitled to recover from the connecting carrier or such other person in possession of the goods when the breach of the obligation under the document occurred, the amount it may be required to pay to anyone entitled to recover on the document therefor, as may be evidenced by any receipt, judgment, or transcript thereof, and the amount of any expense reasonably incurred by it in defending any action brought by anyone entitled to recover on the document therefor.

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History: 1991 a. 316.

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407.303 Diversion; reconsignment; change of instructions. (1) Unless the bill of lading otherwise provides, the carrier may deliver the goods to a person or destination other than that stated in the bill or may otherwise dispose of the goods on instructions from:

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(a) The holder of a negotiable bill; or

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(b) The consignor on a nonnegotiable bill notwithstanding contrary instructions from the consignee; or

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(c) The consignee on a nonnegotiable bill in the absence of contrary instructions from the consignor, if the goods have arrived at the billed destination or if the consignee is in possession of the bill; or

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(d) The consignee on a nonnegotiable bill if the consignee is entitled as against the consignor to dispose of them.

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(2) Unless such instructions are noted on a negotiable bill of lading, a person to whom the bill is duly negotiated can hold the bailee according to the original terms.

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History: 1991 a. 316.

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407.304 Bills of lading in a set. (1) Except where customary in overseas transportation, a bill of lading must not be issued in a set of parts. The issuer is liable for damages caused by violation of this subsection.

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(2) Where a bill of lading is lawfully drawn in a set of parts, each of which is numbered and expressed to be valid only if the goods have not been delivered against any other part, the whole of the parts constitute one bill.

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(3) Where a bill of lading is lawfully issued in a set of parts and different parts are negotiated to different persons, the title of the holder to whom the first due negotiation is made prevails as to both the document and the goods even though any later holder may have received the goods from the carrier in good faith and discharged the carrier's obligation by surrender of his or her part.

407.603 - ANNOT.

(4) Any person who negotiates or transfers a single part of a bill of lading drawn in a set is liable to holders of that part as if it were the whole set.

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(5) The bailee is obliged to deliver in accordance with ss. 407.401 to 407.404 against the first presented part of a bill of lading lawfully drawn in a set. Such delivery discharges the bailee's obligation on the whole bill.

407.603 - ANNOT.

History: 1991 a. 316.

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407.305 Destination bills. (1) Instead of issuing a bill of lading to the consignor at the place of shipment a carrier may at the request of the consignor procure the bill to be issued at destination or at any other place designated in the request.

407.603 - ANNOT.

(2) Upon request of anyone entitled as against the carrier to control the goods while in transit and on surrender of any outstanding bill of lading or other receipt covering such goods, the issuer may procure a substitute bill to be issued at any place designated in the request.

407.603 - ANNOT.

407.306 Altered bills of lading. An unauthorized alteration or filling in of a blank in a bill of lading leaves the bill enforceable according to its original tenor.

407.603 - ANNOT.

407.307 Lien of carrier. (1) A carrier has a lien on the goods covered by a bill of lading for charges subsequent to the date of its receipt of the goods for storage or transportation (including demurrage and terminal charges) and for expenses necessary for preservation of the goods incident to their transportation or reasonably incurred in their sale pursuant to law. But against a purchaser for value of a negotiable bill of lading a carrier's lien is limited to charges stated in the bill or the applicable tariffs, or if no charges are stated then to a reasonable charge.

407.603 - ANNOT.

(2) A lien for charges and expenses under sub. (1) on goods which the carrier was required by law to receive for transportation is effective against the consignor or any person entitled to the goods unless the carrier had notice that the consignor lacked authority to subject the goods to such charges and expenses. Any other lien under sub. (1) is effective against the consignor and any person who permitted the bailor to have control or possession of the goods unless the carrier had notice that the bailor lacked such authority.

407.603 - ANNOT.

(3) A carrier loses the carrier's lien on any goods which the carrier voluntarily delivers or which the carrier unjustifiably refuses to deliver.

407.603 - ANNOT.

History: 1991 a. 316.

407.603 - ANNOT.

407.308 Enforcement of carrier's lien. (1) A carrier's lien may be enforced by public or private sale of the goods, in bloc or in parcels, at any time or place and on any terms which are commercially reasonable, after notifying all persons known to claim an interest in the goods. Such 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 different method from that selected by the carrier is not of itself sufficient to establish that the sale was not made in a commercially reasonable manner. If the carrier either sells the goods in the usual manner in any recognized market therefor or if the carrier sells at the price current in such market at the time of the sale or if the carrier has otherwise sold in conformity with commercially reasonable practices among dealers in the type of goods sold, the carrier has sold in a commercially reasonable manner. 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.

407.603 - ANNOT.

(2) 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 under this section. In that event the goods must not be sold, but must be retained by the carrier subject to the terms of the bill and this chapter.

407.603 - ANNOT.

(3) The carrier may buy at any public sale pursuant to this section.

407.603 - ANNOT.

(4) A purchaser in good faith of goods sold to enforce a carrier's lien takes the goods free of any rights of persons against whom the lien was valid, despite noncompliance by the carrier with the requirements of this section.

407.603 - ANNOT.

(5) The carrier may satisfy the carrier's lien from the proceeds of any sale pursuant to this section but must hold the balance, if any, for delivery on demand to any person to whom the carrier would have been bound to deliver the goods.

407.603 - ANNOT.

(6) The rights provided by this section are in addition to all other rights allowed by law to a creditor against the creditor's debtor.

407.603 - ANNOT.

(7) A carrier's lien may be enforced in accordance with either sub. (1) or the procedure set forth in s. 407.210 (2).

407.603 - ANNOT.

(8) The carrier is liable for damages caused by failure to comply with the requirements for sale under this section and in case of willful violation is liable for conversion.

407.603 - ANNOT.

History: 1991 a. 316.

407.603 - ANNOT.

407.309 Duty of care; contractual limitation of carrier's liability. (1) A carrier who issues a bill of lading whether negotiable or nonnegotiable must exercise the degree of care in relation to the goods which a reasonably careful person would exercise under like circumstances. This subsection does not repeal or change any law or rule of law which imposes liability upon a common carrier for damages not caused by its negligence.

407.603 - ANNOT.

(2) Damages may be limited by a provision that the carrier's liability shall not exceed a value stated in the document if the carrier's rates are dependent upon value and the consignor by the carrier's tariff is afforded an opportunity to declare a higher value or a value as lawfully provided in the tariff, or where no tariff is filed he or she is otherwise advised of such opportunity; but no such limitation is effective with respect to the carrier's liability for conversion to its own use.

407.603 - ANNOT.

(3) Reasonable provisions as to the time and manner of presenting claims and instituting actions based on the shipment may be included in a bill of lading or tariff.

407.603 - ANNOT.

History: 1975 c. 94 s. 91 (12); 1991 a. 316.

407.603 - ANNOT.

SUBCHAPTER IV

407.603 - ANNOT.

WAREHOUSE RECEIPTS AND BILLS OF LADING:
GENERAL OBLIGATIONS

407.603 - ANNOT.

407.401 Irregularities in issue of receipt or bill or conduct of issuer. The obligations imposed by this chapter on an issuer apply to a document of title regardless of the fact that:

407.603 - ANNOT.

(1) The document may not comply with the requirements of this chapter or of any other law or regulation regarding its issue, form or content; or

407.603 - ANNOT.

(2) The issuer may have violated laws regulating the conduct of the issuer's business; or

407.603 - ANNOT.

(3) The goods covered by the document were owned by the bailee at the time the document was issued; or

407.603 - ANNOT.

(4) The person issuing the document does not come within the definition of warehouse keeper if it purports to be a warehouse receipt.

407.603 - ANNOT.

History: 1983 a. 500 s. 43; 1991 a. 316.

407.603 - ANNOT.

407.402 Duplicate receipt or bill; overissue. Neither a duplicate nor any other document of title purporting to cover goods already represented by an outstanding document of the same issuer confers any right in the goods, except as provided in the case of bills in a set, overissue of documents for fungible goods and substitutes for lost, stolen or destroyed documents. But the issuer is liable for damages caused by the issuer's overissue or failure to identify a duplicate document as such by conspicuous notation on its face.

407.603 - ANNOT.

History: 1991 a. 316.

407.603 - ANNOT.

407.403 Obligation of warehouse keeper or carrier to deliver; excuse. (1) The bailee must deliver the goods to a person entitled under the document who complies with subs. (2) and (3), unless and to the extent that the bailee establishes any of the following:

407.603 - ANNOT.

(a) Delivery of the goods to a person whose receipt was rightful as against the claimant;

407.603 - ANNOT.

(b) Damage to or delay, loss or destruction of the goods for which the bailee is not liable;

407.603 - ANNOT.

(c) Previous sale or other disposition of the goods in lawful enforcement of a lien or on warehouse keeper's lawful termination of storage;

407.603 - ANNOT.

(d) The exercise by a seller or lessor of the right to stop delivery pursuant to s. 402.705 or 411.526;

407.603 - ANNOT.

(e) A diversion, reconsignment or other disposition pursuant to s. 407.303 or tariff regulating such right;

407.603 - ANNOT.

(f) Release, satisfaction or any other fact affording a personal defense against the claimant;

407.603 - ANNOT.

(g) Any other lawful excuse.

407.603 - ANNOT.

(2) A person claiming goods covered by a document of title must satisfy the bailee's lien where the bailee so requests or where the bailee is prohibited by law from delivering the goods until the charges are paid.

407.603 - ANNOT.

(3) Unless the person claiming is one against whom the document confers no right under s. 407.503 (1), that person must surrender for cancellation or notation of partial deliveries any outstanding negotiable document covering the goods, and the bailee must cancel the document or conspicuously note the partial delivery thereon or be liable to any person to whom the document is duly negotiated.

407.603 - ANNOT.

(4) "Person entitled under the document" means holder in the case of a negotiable document, or the person to whom delivery is to be made by the terms of or pursuant to written instructions under a nonnegotiable document.

407.603 - ANNOT.

History: 1983 a. 500 s. 43; 1991 a. 148, 316.

407.603 - ANNOT.

407.404 No liability for good faith delivery pursuant to receipt or bill. A bailee who in good faith including observance of reasonable commercial standards has received goods and delivered or otherwise disposed of them according to the terms of the document of title or pursuant to this chapter is not liable therefor. This rule applies even though the person from whom the bailee received the goods had no authority to procure the document or to dispose of the goods and even though the person to whom the bailee delivered the goods had no authority to receive them.

407.603 - ANNOT.

History: 1991 a. 316.

407.603 - ANNOT.

SUBCHAPTER V

407.603 - ANNOT.

WAREHOUSE RECEIPTS AND BILLS OF LADING: NEGOTIATION AND TRANSFER

407.603 - ANNOT.

407.501 Form of negotiation and requirements of "due negotiation". (1) A negotiable document of title running to the order of a named person is negotiated by that named person's endorsement and delivery. After the named person's endorsement in blank or to bearer any person can negotiate it by delivery alone.

407.603 - ANNOT.

(2) (a) A negotiable document of title is also negotiated by delivery alone when by its original terms it runs to bearer and has not been endorsed to a specified person.

407.603 - ANNOT.

(b) When a document running to the order of a named person is delivered to the named person the effect is the same as if the document had been negotiated.

407.603 - ANNOT.

(3) Negotiation of a negotiable document of title after it has been endorsed to a specified person requires endorsement by the special endorsee as well as delivery.

407.603 - ANNOT.

(4) A negotiable document of title is "duly negotiated" when it is negotiated in the manner stated in this section to a holder who 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 receiving the document in settlement or payment of a money obligation.

407.603 - ANNOT.

(5) Endorsement of a nonnegotiable document neither makes it negotiable nor adds to the transferee's rights.

407.603 - ANNOT.

(6) The naming in a negotiable bill of a person to be notified of the arrival of the goods does not limit the negotiability of the bill nor constitute notice to a purchaser thereof of any interest of such person in the goods.

407.603 - ANNOT.

History: 1991 a. 316.

407.603 - ANNOT.

Buyer in ordinary course of business under article 9 of the uniform commercial code (and related matters). Skilton, 1974 WLR 1.

407.603 - ANNOT.

407.502 Rights acquired by due negotiation. (1) Subject to s. 407.503 and to s. 407.205 on fungible goods, a holder to whom a negotiable document of title has been duly negotiated acquires thereby:

407.603 - ANNOT.

(a) Title to the document;

407.603 - ANNOT.

(b) Title to the goods;

407.603 - ANNOT.

(c) All rights accruing under the law of agency or estoppel, including rights to goods delivered to the bailee after the document was issued; and

407.603 - ANNOT.

(d) The direct obligation of the issuer to hold or deliver the goods according to the terms of the document free of any defense or claim by the issuer except those arising under the terms of the document or under this chapter. In the case of a delivery order the bailee's obligation accrues only upon acceptance and the obligation acquired by the holder is that the issuer and any endorser will procure the acceptance of the bailee.

407.603 - ANNOT.

(2) Subject to s. 407.503, title and rights so acquired are not defeated by any stoppage of the goods represented by the document or by surrender of such goods by the bailee, and are not impaired even though the negotiation or any prior negotiation constituted a breach of duty or even though any person has been deprived of possession of the document by misrepresentation, fraud, accident, mistake, duress, loss, theft or conversion, or even though a previous sale or other transfer of the goods or document has been made to a 3rd person.

407.603 - ANNOT.

History: 1991 a. 316; 2005 a. 253.

407.603 - ANNOT.

407.503 Document of title to goods defeated in certain cases. (1) A document of title confers no right in goods against a person who before issuance of the document had a legal interest or a perfected security interest in them and who neither:

407.603 - ANNOT.

(a) Delivered or entrusted them or any document of title covering them to the bailor or the bailor's nominee with actual or apparent authority to ship, store, or sell or with power to obtain delivery under s. 407.403 or with power of disposition under s. 402.403 or 409.320 or other statute or rule of law; nor

407.603 - ANNOT.

(b) Acquiesced in the procurement by the bailor or the bailor's nominee of any document of title.

407.603 - ANNOT.

(2) Title to goods based upon an unaccepted delivery order is subject to the rights of anyone to whom a negotiable warehouse receipt or bill of lading covering the goods has been duly negotiated. Such a title may be defeated under s. 407.504 to the same extent as the rights of the issuer or a transferee from the issuer.

407.603 - ANNOT.

(3) Title to goods based upon a bill of lading issued to a freight forwarder is subject to the rights of anyone to whom a bill issued by the freight forwarder is duly negotiated; but delivery by the carrier in accordance with ss. 407.401 to 407.404 pursuant to its own bill of lading discharges the carrier's obligation to deliver.

407.603 - ANNOT.

History: 1991 a. 316; 2001 a. 10.

407.603 - ANNOT.

407.504 Rights acquired in the absence of due negotiation; effect of diversion; seller's stoppage of delivery. (1) A transferee of a document, whether negotiable or nonnegotiable, to whom the document has been delivered but not duly negotiated, acquires the title and rights which the transferee's transferor had or had actual authority to convey.

407.603 - ANNOT.

(2) In the case of a nonnegotiable document, until but not after the bailee receives notification of the transfer, the rights of the transferee may be defeated:

407.603 - ANNOT.

(a) By those creditors of the transferor who could treat the sale as void under s. 402.402; or

407.603 - ANNOT.

(b) By a buyer from the transferor in ordinary course of business if the bailee has delivered the goods to the buyer or received notification of the buyer's rights; or

407.603 - ANNOT.

(c) As against the bailee by good faith dealings of the bailee with the transferor.

407.603 - ANNOT.

(3) A diversion or other change of shipping instructions by the consignor in a nonnegotiable bill of lading which causes the bailee not to deliver to the consignee defeats the consignee's title to the goods if they have been delivered to a buyer in ordinary course of business and in any event defeats the consignee's rights against the bailee.

407.603 - ANNOT.

(4) Delivery pursuant to a nonnegotiable document may be stopped by a seller under s. 402.705 or a lessor under s. 411.526, and subject to the requirement of due notification there provided. A bailee honoring the instructions of the seller or lessor is entitled to be indemnified by the seller or lessor against any resulting loss or expense.

407.603 - ANNOT.

History: 1991 a. 148, 316.

407.603 - ANNOT.

407.505 Endorser not a guarantor for other parties. The endorsement of a document of title issued by a bailee does not make the endorser liable for any default by the bailee or by previous endorsers.

407.603 - ANNOT.

407.506 Delivery without endorsement: right to compel endorsement. The transferee of a negotiable document of title has a specifically enforceable right to have the transferee's transferor supply any necessary endorsement but the transfer becomes a negotiation only as of the time the endorsement is supplied.

407.603 - ANNOT.

History: 1991 a. 316.

407.603 - ANNOT.

407.507 Warranties on negotiation or transfer of receipt or bill. Where a person negotiates or transfers a document of title for value otherwise than as a mere intermediary under s. 407.508, then unless otherwise agreed that person warrants to that person's immediate purchaser only in addition to any warranty made in selling the goods:

407.603 - ANNOT.

(1) That the document is genuine; and

407.603 - ANNOT.

(2) That that person has no knowledge of any fact which would impair its validity or worth; and

407.603 - ANNOT.

(3) That that person's negotiation or transfer is rightful and fully effective with respect to the title to the document and the goods it represents.

407.603 - ANNOT.

History: 1991 a. 316.

407.603 - ANNOT.

407.508 Warranties of collecting bank as to documents. A collecting bank or other intermediary known to be entrusted with documents on behalf of another or with collection of a draft or other claim against delivery of documents warrants by such delivery of the documents only its own good faith and authority. This rule applies even though the intermediary has purchased or made advances against the claim or draft to be collected.

407.603 - ANNOT.

407.509 Receipt or bill: when adequate compliance with commercial contract. The question whether a document is adequate to fulfill the obligations of a contract for sale or the conditions of a credit is governed by chs. 402 and 405.

407.603 - ANNOT.

SUBCHAPTER VI

407.603 - ANNOT.

WAREHOUSE RECEIPTS AND BILLS OF LADING:
MISCELLANEOUS PROVISIONS

407.603 - ANNOT.

407.601 Lost and missing documents. (1) If a document has been lost, stolen or destroyed, a court may order delivery of the goods or issuance of a substitute document and the bailee may without liability to any person comply with such order. If the document was negotiable the claimant must post security approved by the court to indemnify any person who may suffer loss as a result of nonsurrender of the document. If the document was not negotiable, such security may be required at the discretion of the court. The court may also in its discretion order payment of the bailee's reasonable costs and counsel fees.

407.603 - ANNOT.

(2) A bailee who without court order delivers goods to a person claiming under a missing negotiable document is liable to any person injured thereby, and if the delivery is not in good faith becomes liable for conversion. Delivery in good faith is not conversion if made in accordance with a filed classification or tariff or, where no classification or tariff is filed, if the claimant posts security with the bailee in an amount at least double the value of the goods at the time of posting to indemnify any person injured by the delivery who files a notice of claim within one year after the delivery.

407.603 - ANNOT.

407.602 Attachment of goods covered by a negotiable document. Except where the document was originally issued upon delivery of the goods by a person who had no power to dispose of them, no lien attaches by virtue of any judicial process to goods in the possession of a bailee for which a negotiable document of title is outstanding unless the document be first surrendered to the bailee or its negotiation enjoined, and the bailee shall not be compelled to deliver the goods pursuant to process until the document is surrendered to the bailee or impounded by the court. One who purchases the document for value without notice of the process or injunction takes free of the lien imposed by judicial process.

407.603 - ANNOT.

History: 1991 a. 316.

407.603 - ANNOT.

407.603 Conflicting claims; interpleader. If more than one person claims title or possession of the goods, the bailee is excused from delivery until the bailee has had a reasonable time to ascertain the validity of the adverse claims or to bring an action to compel all claimants to interplead and may compel such interpleader, either in defending an action for nondelivery of the goods, or by original action, whichever is appropriate.

407.603 - ANNOT.

History: 1991 a. 316.

State Codes and Statutes

Statutes > Wisconsin > 407 > 407.603

407.603

407.603 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.

407.603 - ANNOT.

History: 2009 a. 322.

407.603 - ANNOT.

NOTE: Chapter 407 is shown as repealed and recreated eff. 8-1-10 by 2009 Wis. Act 322. Prior to 8-1-10 it reads:

407.603 - ANNOT.

SUBCHAPTER I

407.603 - ANNOT.

GENERAL

407.603 - ANNOT.

407.101 Short title. This chapter shall be known and may be cited as uniform commercial codedocuments of title.

407.603 - ANNOT.

407.102 Definitions and index of definitions. (1) In this chapter, unless the context otherwise requires:

407.603 - ANNOT.

(a) "Bailee" means the person who by a warehouse receipt, bill of lading or other document of title acknowledges possession of goods and contracts to deliver them.

407.603 - ANNOT.

(b) "Consignee" means the person named in a bill to whom or to whose order the bill promises delivery.

407.603 - ANNOT.

(c) "Consignor" means the person named in a bill as the person from whom the goods have been received for shipment.

407.603 - ANNOT.

(d) "Delivery order" means a written order to deliver goods directed to a warehouse keeper, carrier or other person who in the ordinary course of business issues warehouse receipts or bills of lading.

407.603 - ANNOT.

(e) "Document" means document of title as defined in s. 401.201.

407.603 - ANNOT.

(f) "Goods" means all things which are treated as movable for the purposes of a contract of storage or transportation.

407.603 - ANNOT.

(g) "Issuer" means a bailee who issues a document except that in relation to an unaccepted delivery order it means the person who orders the possessor of goods to deliver. Issuer includes any person for whom an agent or employee purports to act in issuing a document if the agent or employee has real or apparent authority to issue documents notwithstanding that the issuer received no goods or that the goods were misdescribed or that in any other respect the agent or employee violated the issuer's instructions.

407.603 - ANNOT.

(h) "Warehouse keeper" is a person engaged in the business of storing goods for hire.

407.603 - ANNOT.

(2) Other definitions applying to this chapter or to specified sections thereof, and the sections in which they appear are:

407.603 - ANNOT.

(a) "Duly negotiate" s. 407.501.

407.603 - ANNOT.

(b) "Person entitled under the document" s. 407.403 (4).

407.603 - ANNOT.

(3) Definitions in other chapters applying to this chapter and the sections in which they appear are:

407.603 - ANNOT.

(a) "Contract for sale" s. 402.106.

407.603 - ANNOT.

(am) "Lessor" s. 411.103 (1) (p).

407.603 - ANNOT.

(b) "Overseas" s. 402.323.

407.603 - ANNOT.

(c) "Receipt" of goods s. 402.103.

407.603 - ANNOT.

(4) In addition ch. 401 contains general definitions and principles of construction and interpretation applicable throughout this chapter.

407.603 - ANNOT.

History: 1983 a. 500 s. 43; 1991 a. 148, 316.

407.603 - ANNOT.

407.103 Relation of chapter to treaty, statute, tariff, classification or regulation; laws not repealed. (1) To the extent that any treaty or statute of the United States, regulatory statute of this state or tariff, classification or regulation filed or issued pursuant thereto is applicable, the provisions of this chapter are subject thereto.

407.603 - ANNOT.

(2) This chapter does not repeal or modify any laws prescribing the form or contents of documents of title or the services or facilities to be afforded by bailees, or otherwise regulating bailees' businesses in respects not specifically dealt with herein; but the fact that such laws are violated does not affect the status of a document of title which otherwise complies with the definition of a document of title in s. 401.201.

407.603 - ANNOT.

407.104 Negotiable and nonnegotiable warehouse receipt, bill of lading or other document of title. (1) A warehouse receipt, bill of lading or other document of title is negotiable:

407.603 - ANNOT.

(a) If by its terms the goods are to be delivered to bearer or to the order of a named person; or

407.603 - ANNOT.

(b) Where recognized in overseas trade, if it runs to a named person or assigns.

407.603 - ANNOT.

(2) Any other document is nonnegotiable. A bill of lading in which it is stated that the goods are consigned to a named person is not made negotiable by a provision that the goods are to be delivered only against a written order signed by the same or another named person.

407.603 - ANNOT.

407.105 Construction against negative implication. The omission from either ss. 407.201 to 407.210 or ss. 407.301 to 407.309 of a provision corresponding to a provision contained in the other group of sections does not imply that a corresponding rule of law is not applicable.

407.603 - ANNOT.

SUBCHAPTER II

407.603 - ANNOT.

WAREHOUSE RECEIPTS: SPECIAL PROVISIONS

407.603 - ANNOT.

407.201 Who may issue a warehouse receipt; storage under government bond. (1) A warehouse receipt may be issued by any warehouse keeper.

407.603 - ANNOT.

(2) Where goods including distilled spirits and agricultural commodities are stored under a statute requiring a bond against withdrawal or a license for the issuance of receipts in the nature of warehouse receipts, a receipt issued for the goods has like effect as a warehouse receipt even though issued by a person who is the owner of the goods and is not a warehouse keeper.

407.603 - ANNOT.

History: 1983 a. 500 s. 43.

407.603 - ANNOT.

407.202 Form of warehouse receipt; essential terms; optional terms. (1) A warehouse receipt need not be in any particular form.

407.603 - ANNOT.

(2) Unless a warehouse receipt embodies within its written or printed terms each of the following, the warehouse keeper is liable for damages caused by the omission to a person injured thereby:

407.603 - ANNOT.

(a) The location of the warehouse where the goods are stored;

407.603 - ANNOT.

(b) The date of issue of the receipt;

407.603 - ANNOT.

(c) The consecutive number of the receipt;

407.603 - ANNOT.

(d) A statement whether the goods received will be delivered to the bearer, to a specified person, or to a specified person or the specified person's order;

407.603 - ANNOT.

(e) The rate of storage and handling charges, except that where goods are stored under a field warehousing arrangement a statement of that fact is sufficient on a nonnegotiable receipt;

407.603 - ANNOT.

(f) A description of the goods or of the packages containing them;

407.603 - ANNOT.

(g) The signature of the warehouse keeper, which may be made by the warehouse keeper's authorized agent;

407.603 - ANNOT.

(h) If the receipt is issued for goods of which the warehouse keeper is owner, either solely or jointly or in common with others, the fact of such ownership; and

407.603 - ANNOT.

(i) A statement of the amount of advances made and of liabilities incurred for which the warehouse keeper claims a lien or security interest (s. 407.209). If the precise amount of such advances made or of such liabilities incurred is, at the time of the issue of the receipt, unknown to the warehouse keeper or to the warehouse keeper's agent who issues it, a statement of the fact that advances have been made or liabilities incurred and the purpose thereof is sufficient.

407.603 - ANNOT.

(3) A warehouse keeper may insert in his or her receipt any other terms which are not contrary to chs. 401 to 411 and do not impair his or her obligation of delivery (s. 407.403) or his or her duty of care (s. 407.204). Any contrary provisions are ineffective.

407.603 - ANNOT.

History: 1979 c. 89; 1983 a. 500 s. 43; 1991 a. 148, 304, 315, 316.

407.603 - ANNOT.

407.203 Liability for nonreceipt or misdescription. A party to or purchaser for value in good faith of a document of title other than a bill of lading relying in either case upon the description therein of the goods may recover from the issuer damages caused by the nonreceipt or misdescription of the goods, except to the extent that the document conspicuously indicates that the issuer does not know whether any part or all of the goods in fact were received or conform to the description, as where the description is in terms of marks or labels or kind, quantity or condition, or the receipt or description is qualified by "contents, condition and quality unknown", "said to contain" or the like, if such indication be true, or the party or purchaser otherwise has notice.

407.603 - ANNOT.

407.204 Duty of care; contractual limitation of warehouse keeper's liability. (1) A warehouse keeper is liable for damages for loss of or injury to the goods caused by failure to exercise such care in regard to them as a reasonably careful person would exercise under like circumstances but unless otherwise agreed the warehouse keeper is not liable for damages which could not have been avoided by the exercise of such care.

407.603 - ANNOT.

(2) Damages may be limited by a conspicuous term in the warehouse receipt or storage agreement limiting the amount of liability in case of loss or damage, and setting forth a specific liability per article or item, or value per unit of weight, beyond which the warehouse keeper shall not be liable; however, such liability may on written request of the bailor at the time of signing such storage agreement or within a reasonable time after receipt of the warehouse receipt be increased on part or all of the goods thereunder, in which event increased rates may be charged based on such increased valuation, but no such increase shall be permitted contrary to a lawful limitation of liability contained in the warehouse keeper's tariff, if any. No such limitation is effective with respect to the warehouse keeper's liability for conversion to the warehouse keeper's own use.

407.603 - ANNOT.

(3) Reasonable provisions as to the time and manner of presenting claims and instituting actions based on the bailment may be included in the warehouse receipt or tariff.

407.603 - ANNOT.

History: 1975 c. 94, 200; 1983 a. 500 s. 43; 1991 a. 316.

407.603 - ANNOT.

407.205 Title under warehouse receipt defeated in certain cases. A buyer in the ordinary course of business of fungible goods sold and delivered by a warehouse keeper who is also in the business of buying and selling such goods takes free of any claim under a warehouse receipt even though it has been duly negotiated.

407.603 - ANNOT.

History: 1983 a. 500 s. 43.

407.603 - ANNOT.

407.206 Termination of storage at warehouse keeper's option. (1) A warehouse keeper may on notifying the person on whose account the goods are held and any other person known to claim an interest in the goods require payment of any charges and removal of the goods from the warehouse at the termination of the period of storage fixed by the document, or, if no period is fixed, within a stated period not less than 30 days after the notification. If the goods are not removed before the date specified in the notification, the warehouse keeper may sell them in accordance with s. 407.210 on enforcement of a warehouse keeper's lien.

407.603 - ANNOT.

(2) If a warehouse keeper in good faith believes that the goods are about to deteriorate or decline in value to less than the amount of the warehouse keeper's lien within the time prescribed in sub. (1) for notification, advertisement and sale, the warehouse keeper may specify in the notification any reasonable shorter time for removal of the goods and in case the goods are not removed, may sell them at public sale held not less than one week after publication of a class 1 notice, under ch. 985.

407.603 - ANNOT.

(3) If as a result of a quality or condition of the goods of which the warehouse keeper had no notice at the time of deposit the goods are a hazard to other property or to the warehouse or to persons, the warehouse keeper may sell the goods at public or private sale without advertisement on reasonable notification to all persons known to claim an interest in the goods. If the warehouse keeper after a reasonable effort is unable to sell the goods the warehouse keeper may dispose of them in any lawful manner and shall incur no liability by reason of such disposition.

407.603 - ANNOT.

(4) The warehouse keeper must deliver the goods to any person entitled to them under this chapter upon due demand made at any time prior to sale or other disposition under this section.

407.603 - ANNOT.

(5) The warehouse keeper may satisfy the warehouse keeper's lien from the proceeds of any sale or disposition under this section but must hold the balance for delivery on the demand of any person to whom the warehouse keeper would have been bound to deliver the goods.

407.603 - ANNOT.

History: 1983 a. 500 s. 43; 1991 a. 316.

407.603 - ANNOT.

407.207 Goods must be kept separate; fungible goods. (1) Unless the warehouse receipt otherwise provides, a warehouse keeper must keep separate the goods covered by each receipt so as to permit at all times identification and delivery of those goods except that different lots of fungible goods may be commingled.

407.603 - ANNOT.

(2) Fungible goods so commingled are owned in common by the persons entitled thereto and the warehouse keeper is severally liable to each owner for that owner's share. Where because of overissue a mass of fungible goods is insufficient to meet all the receipts which the warehouse keeper has issued against it, the persons entitled include all holders to whom overissued receipts have been duly negotiated.

407.603 - ANNOT.

History: 1983 a. 500 s. 43.

407.603 - ANNOT.

407.208 Altered warehouse receipts. Where a blank in a negotiable warehouse receipt has been filled in without authority, a purchaser for value and without notice of the want of authority may treat the insertion as authorized. Any other unauthorized alteration leaves any receipt enforceable against the issuer according to its original tenor.

407.603 - ANNOT.

407.209 Lien of warehouse keeper. (1) A warehouse keeper has a lien against the bailor on the goods covered by a warehouse receipt or on the proceeds thereof in the warehouse keeper's possession for charges for storage or transportation (including demurrage and terminal charges), insurance, labor, or charges present or future in relation to the goods, and for expenses necessary for preservation of the goods or reasonably incurred in their sale pursuant to law. If the person on whose account the goods are held is liable for like charges or expenses in relation to other goods whenever deposited and it is stated in the receipt that a lien is claimed for charges and expenses in relation to other goods, the warehouse keeper also has a lien against that person for such charges and expenses whether or not the other goods have been delivered by the warehouse keeper. But against a person to whom a negotiable warehouse receipt is duly negotiated a warehouse keeper's lien is limited to charges in an amount or at a rate specified on the receipt or if no charges are so specified then to a reasonable charge for storage of the goods covered by the receipt subsequent to the date of the receipt.

407.603 - ANNOT.

(2) The warehouse keeper may also reserve a security interest against the bailor for a maximum amount specified on the receipt for charges other than those specified in sub. (1), such as for money advanced and interest. Such a security interest is governed by ch. 409.

407.603 - ANNOT.

(3) A warehouse keeper's lien for charges and expenses under sub. (1) or a security interest under sub. (2) is also effective against any person who so entrusted the bailor with possession of the goods that a pledge of them by the bailor to a good faith purchaser for value would have been valid but is not effective against a person as to whom the document confers no right in the goods covered by it under s. 407.503.

407.603 - ANNOT.

(4) A warehouse keeper loses the warehouse keeper's lien on any goods which the warehouse keeper voluntarily delivers or unjustifiably refuses to deliver.

407.603 - ANNOT.

History: 1983 a. 500 s. 43; 1991 a. 316.

407.603 - ANNOT.

407.210 Enforcement of warehouse keeper's lien. (1) Except as provided in sub. (2), a warehouse keeper's lien may be enforced by public or private sale of the goods in bloc or in parcels, at any time or place and on any terms which are commercially reasonable, after notifying all persons known to claim an interest in the goods. Such 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 different method from that selected by the warehouse keeper is not of itself sufficient to establish that the sale was not made in a commercially reasonable manner. If the warehouse keeper either sells the goods in the usual manner in any recognized market therefor, or at the price current in such market at the time of the sale, or if the warehouse keeper has otherwise sold in conformity with commercially reasonable practices among dealers in the type of goods sold, the warehouse keeper has sold in a commercially reasonable manner. A sale of more goods than apparently necessary to be offered to insure satisfaction of the obligation is not commercially reasonable except in cases covered by the preceding sentence.

407.603 - ANNOT.

(2) A warehouse keeper's lien on goods, other than goods stored by a merchant in the course of his or her business, may be enforced as provided in sub. (1) if all of the following are satisfied:

407.603 - ANNOT.

(a) The warehouse keeper notifies all persons known to claim an interest in the goods by delivering in person or sending by registered or certified mail to the last-known address of persons known to claim an interest in the goods the notice specified in par. (b).

407.603 - ANNOT.

(b) The notice includes an itemized statement of the claim, a description of the goods subject to the lien, a demand for payment within a specified time not less than 30 days after receipt of the notification, and a conspicuous statement that unless the claim is paid within that time the goods will be sold by public or private sale.

407.603 - ANNOT.

(3) 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 under this section. In that event the goods must not be sold, but must be retained by the warehouse keeper subject to the terms of the receipt and this chapter.

407.603 - ANNOT.

(4) The warehouse keeper may buy at any public sale pursuant to this section.

407.603 - ANNOT.

(5) A purchaser in good faith of goods sold to enforce a warehouse keeper's lien takes the goods free of any rights of persons against whom the lien was valid, despite noncompliance by the warehouse keeper with the requirements of this section.

407.603 - ANNOT.

(6) The warehouse keeper may satisfy the warehouse keeper's lien from the proceeds of any sale pursuant to this section but must hold the balance, if any, for delivery on demand to any person to whom the warehouse keeper would have been bound to deliver the goods.

407.603 - ANNOT.

(7) The rights provided by this section shall be in addition to all other rights allowed by law to a creditor against the creditor's debtor.

407.603 - ANNOT.

(8) Where a lien is on goods stored by a merchant in the course of the merchant's business the lien may be enforced in accordance with either sub. (1) or (2).

407.603 - ANNOT.

(9) The warehouse keeper is liable for damages caused by failure to comply with the requirements for sale under this section and in case of willful violation is liable for conversion.

407.603 - ANNOT.

History: 1983 a. 500 s. 43; 1987 a. 213; 1991 a. 316.

407.603 - ANNOT.

A warehouse keeper's proposed sale of goods entrusted to him for storage was not an action properly attributable to the state. Flagg Bros., Inc. v. Brooks, 436 U.S. 149 (1978).

407.603 - ANNOT.

Warehouse keeper's liens may constitutionally be enforced against tenants dispossessed under s. 299.45, 1977 stats. [now s. 799.45]. Wegwart v. Eagle Movers, Inc. 441 F. Supp. 872 (1977).

407.603 - ANNOT.

A warehouse keeper's conduct in enforcing liens against a dispossessed tenant was not attributable to the state. Wegwart v. Eagle Movers, Inc. 467 F. Supp. 573 (1979).

407.603 - ANNOT.

SUBCHAPTER III

407.603 - ANNOT.

BILLS OF LADING: SPECIAL PROVISIONS

407.603 - ANNOT.

407.301 Liability for nonreceipt or misdescription; "said to contain"; "shipper's load and count"; improper handling. (1) A consignee of a nonnegotiable bill who has given value in good faith or a holder to whom a negotiable bill has been duly negotiated relying in either case upon the description therein of the goods, or upon the date therein shown, may recover from the issuer damages caused by the misdating of the bill or the nonreceipt or misdescription of the goods, except to the extent that the document indicates that the issuer does not know whether any part or all of the goods in fact were received or conform to the description, as where the description is in terms of marks or labels or kind, quantity, or condition or the receipt or description is qualified by "contents or condition of contents of packages unknown", "said to contain", "shipper's weight, load and count" or the like, if such indication is true.

407.603 - ANNOT.

(2) When goods are loaded by an issuer who is a common carrier, the issuer must count the packages of goods if package freight and ascertain the kind and quantity if bulk freight. In such cases "shipper's weight, load and count" or other words indicating that the description was made by the shipper are ineffective except as to freight concealed by packages.

407.603 - ANNOT.

(3) When bulk freight is loaded by a shipper who makes available to the issuer adequate facilities for weighing such freight, an issuer who is a common carrier must ascertain the kind and quantity within a reasonable time after receiving the written request of the shipper to do so. In such cases "shipper's weight" or other words of like purport are ineffective.

407.603 - ANNOT.

(4) The issuer may by inserting in the bill the words "shipper's weight, load and count" or other words of like purport indicate that the goods were loaded by the shipper; and if such statement is true the issuer shall not be liable for damages caused by the improper loading. But their omission does not imply liability for such damages.

407.603 - ANNOT.

(5) The shipper shall be deemed to have guaranteed to the issuer the accuracy at the time of shipment of the description, marks, labels, number, kind, quantity, condition and weight, as furnished by the shipper; and the shipper shall indemnify the issuer against damage caused by inaccuracies in such particulars. The right of the issuer to such indemnity shall in no way limit the issuer's responsibility and liability under the contract of carriage to any person other than the shipper.

407.603 - ANNOT.

History: 1991 a. 316.

407.603 - ANNOT.

407.302 Through bills of lading and similar documents. (1) The issuer of a through bill of lading or other document embodying an undertaking to be performed in part by persons acting as its agents or by connecting carriers is liable to anyone entitled to recover on the document for any breach by such other persons or by a connecting carrier of its obligation under the document but to the extent that the bill covers an undertaking to be performed overseas or in territory not contiguous to the continental United States or an undertaking including matters other than transportation this liability may be varied by agreement of the parties.

407.603 - ANNOT.

(2) Where goods covered by a through bill of lading or other document embodying an undertaking to be performed in part by persons other than the issuer are received by any such person, that person is subject with respect to that person's own performance while the goods are in that person's possession to the obligation of the issuer. That person's obligation is discharged by delivery of the goods to another such person pursuant to the document, and does not include liability for breach by any other such persons or by the issuer.

407.603 - ANNOT.

(3) The issuer of such through bill of lading or other document shall be entitled to recover from the connecting carrier or such other person in possession of the goods when the breach of the obligation under the document occurred, the amount it may be required to pay to anyone entitled to recover on the document therefor, as may be evidenced by any receipt, judgment, or transcript thereof, and the amount of any expense reasonably incurred by it in defending any action brought by anyone entitled to recover on the document therefor.

407.603 - ANNOT.

History: 1991 a. 316.

407.603 - ANNOT.

407.303 Diversion; reconsignment; change of instructions. (1) Unless the bill of lading otherwise provides, the carrier may deliver the goods to a person or destination other than that stated in the bill or may otherwise dispose of the goods on instructions from:

407.603 - ANNOT.

(a) The holder of a negotiable bill; or

407.603 - ANNOT.

(b) The consignor on a nonnegotiable bill notwithstanding contrary instructions from the consignee; or

407.603 - ANNOT.

(c) The consignee on a nonnegotiable bill in the absence of contrary instructions from the consignor, if the goods have arrived at the billed destination or if the consignee is in possession of the bill; or

407.603 - ANNOT.

(d) The consignee on a nonnegotiable bill if the consignee is entitled as against the consignor to dispose of them.

407.603 - ANNOT.

(2) Unless such instructions are noted on a negotiable bill of lading, a person to whom the bill is duly negotiated can hold the bailee according to the original terms.

407.603 - ANNOT.

History: 1991 a. 316.

407.603 - ANNOT.

407.304 Bills of lading in a set. (1) Except where customary in overseas transportation, a bill of lading must not be issued in a set of parts. The issuer is liable for damages caused by violation of this subsection.

407.603 - ANNOT.

(2) Where a bill of lading is lawfully drawn in a set of parts, each of which is numbered and expressed to be valid only if the goods have not been delivered against any other part, the whole of the parts constitute one bill.

407.603 - ANNOT.

(3) Where a bill of lading is lawfully issued in a set of parts and different parts are negotiated to different persons, the title of the holder to whom the first due negotiation is made prevails as to both the document and the goods even though any later holder may have received the goods from the carrier in good faith and discharged the carrier's obligation by surrender of his or her part.

407.603 - ANNOT.

(4) Any person who negotiates or transfers a single part of a bill of lading drawn in a set is liable to holders of that part as if it were the whole set.

407.603 - ANNOT.

(5) The bailee is obliged to deliver in accordance with ss. 407.401 to 407.404 against the first presented part of a bill of lading lawfully drawn in a set. Such delivery discharges the bailee's obligation on the whole bill.

407.603 - ANNOT.

History: 1991 a. 316.

407.603 - ANNOT.

407.305 Destination bills. (1) Instead of issuing a bill of lading to the consignor at the place of shipment a carrier may at the request of the consignor procure the bill to be issued at destination or at any other place designated in the request.

407.603 - ANNOT.

(2) Upon request of anyone entitled as against the carrier to control the goods while in transit and on surrender of any outstanding bill of lading or other receipt covering such goods, the issuer may procure a substitute bill to be issued at any place designated in the request.

407.603 - ANNOT.

407.306 Altered bills of lading. An unauthorized alteration or filling in of a blank in a bill of lading leaves the bill enforceable according to its original tenor.

407.603 - ANNOT.

407.307 Lien of carrier. (1) A carrier has a lien on the goods covered by a bill of lading for charges subsequent to the date of its receipt of the goods for storage or transportation (including demurrage and terminal charges) and for expenses necessary for preservation of the goods incident to their transportation or reasonably incurred in their sale pursuant to law. But against a purchaser for value of a negotiable bill of lading a carrier's lien is limited to charges stated in the bill or the applicable tariffs, or if no charges are stated then to a reasonable charge.

407.603 - ANNOT.

(2) A lien for charges and expenses under sub. (1) on goods which the carrier was required by law to receive for transportation is effective against the consignor or any person entitled to the goods unless the carrier had notice that the consignor lacked authority to subject the goods to such charges and expenses. Any other lien under sub. (1) is effective against the consignor and any person who permitted the bailor to have control or possession of the goods unless the carrier had notice that the bailor lacked such authority.

407.603 - ANNOT.

(3) A carrier loses the carrier's lien on any goods which the carrier voluntarily delivers or which the carrier unjustifiably refuses to deliver.

407.603 - ANNOT.

History: 1991 a. 316.

407.603 - ANNOT.

407.308 Enforcement of carrier's lien. (1) A carrier's lien may be enforced by public or private sale of the goods, in bloc or in parcels, at any time or place and on any terms which are commercially reasonable, after notifying all persons known to claim an interest in the goods. Such 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 different method from that selected by the carrier is not of itself sufficient to establish that the sale was not made in a commercially reasonable manner. If the carrier either sells the goods in the usual manner in any recognized market therefor or if the carrier sells at the price current in such market at the time of the sale or if the carrier has otherwise sold in conformity with commercially reasonable practices among dealers in the type of goods sold, the carrier has sold in a commercially reasonable manner. 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.

407.603 - ANNOT.

(2) 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 under this section. In that event the goods must not be sold, but must be retained by the carrier subject to the terms of the bill and this chapter.

407.603 - ANNOT.

(3) The carrier may buy at any public sale pursuant to this section.

407.603 - ANNOT.

(4) A purchaser in good faith of goods sold to enforce a carrier's lien takes the goods free of any rights of persons against whom the lien was valid, despite noncompliance by the carrier with the requirements of this section.

407.603 - ANNOT.

(5) The carrier may satisfy the carrier's lien from the proceeds of any sale pursuant to this section but must hold the balance, if any, for delivery on demand to any person to whom the carrier would have been bound to deliver the goods.

407.603 - ANNOT.

(6) The rights provided by this section are in addition to all other rights allowed by law to a creditor against the creditor's debtor.

407.603 - ANNOT.

(7) A carrier's lien may be enforced in accordance with either sub. (1) or the procedure set forth in s. 407.210 (2).

407.603 - ANNOT.

(8) The carrier is liable for damages caused by failure to comply with the requirements for sale under this section and in case of willful violation is liable for conversion.

407.603 - ANNOT.

History: 1991 a. 316.

407.603 - ANNOT.

407.309 Duty of care; contractual limitation of carrier's liability. (1) A carrier who issues a bill of lading whether negotiable or nonnegotiable must exercise the degree of care in relation to the goods which a reasonably careful person would exercise under like circumstances. This subsection does not repeal or change any law or rule of law which imposes liability upon a common carrier for damages not caused by its negligence.

407.603 - ANNOT.

(2) Damages may be limited by a provision that the carrier's liability shall not exceed a value stated in the document if the carrier's rates are dependent upon value and the consignor by the carrier's tariff is afforded an opportunity to declare a higher value or a value as lawfully provided in the tariff, or where no tariff is filed he or she is otherwise advised of such opportunity; but no such limitation is effective with respect to the carrier's liability for conversion to its own use.

407.603 - ANNOT.

(3) Reasonable provisions as to the time and manner of presenting claims and instituting actions based on the shipment may be included in a bill of lading or tariff.

407.603 - ANNOT.

History: 1975 c. 94 s. 91 (12); 1991 a. 316.

407.603 - ANNOT.

SUBCHAPTER IV

407.603 - ANNOT.

WAREHOUSE RECEIPTS AND BILLS OF LADING:
GENERAL OBLIGATIONS

407.603 - ANNOT.

407.401 Irregularities in issue of receipt or bill or conduct of issuer. The obligations imposed by this chapter on an issuer apply to a document of title regardless of the fact that:

407.603 - ANNOT.

(1) The document may not comply with the requirements of this chapter or of any other law or regulation regarding its issue, form or content; or

407.603 - ANNOT.

(2) The issuer may have violated laws regulating the conduct of the issuer's business; or

407.603 - ANNOT.

(3) The goods covered by the document were owned by the bailee at the time the document was issued; or

407.603 - ANNOT.

(4) The person issuing the document does not come within the definition of warehouse keeper if it purports to be a warehouse receipt.

407.603 - ANNOT.

History: 1983 a. 500 s. 43; 1991 a. 316.

407.603 - ANNOT.

407.402 Duplicate receipt or bill; overissue. Neither a duplicate nor any other document of title purporting to cover goods already represented by an outstanding document of the same issuer confers any right in the goods, except as provided in the case of bills in a set, overissue of documents for fungible goods and substitutes for lost, stolen or destroyed documents. But the issuer is liable for damages caused by the issuer's overissue or failure to identify a duplicate document as such by conspicuous notation on its face.

407.603 - ANNOT.

History: 1991 a. 316.

407.603 - ANNOT.

407.403 Obligation of warehouse keeper or carrier to deliver; excuse. (1) The bailee must deliver the goods to a person entitled under the document who complies with subs. (2) and (3), unless and to the extent that the bailee establishes any of the following:

407.603 - ANNOT.

(a) Delivery of the goods to a person whose receipt was rightful as against the claimant;

407.603 - ANNOT.

(b) Damage to or delay, loss or destruction of the goods for which the bailee is not liable;

407.603 - ANNOT.

(c) Previous sale or other disposition of the goods in lawful enforcement of a lien or on warehouse keeper's lawful termination of storage;

407.603 - ANNOT.

(d) The exercise by a seller or lessor of the right to stop delivery pursuant to s. 402.705 or 411.526;

407.603 - ANNOT.

(e) A diversion, reconsignment or other disposition pursuant to s. 407.303 or tariff regulating such right;

407.603 - ANNOT.

(f) Release, satisfaction or any other fact affording a personal defense against the claimant;

407.603 - ANNOT.

(g) Any other lawful excuse.

407.603 - ANNOT.

(2) A person claiming goods covered by a document of title must satisfy the bailee's lien where the bailee so requests or where the bailee is prohibited by law from delivering the goods until the charges are paid.

407.603 - ANNOT.

(3) Unless the person claiming is one against whom the document confers no right under s. 407.503 (1), that person must surrender for cancellation or notation of partial deliveries any outstanding negotiable document covering the goods, and the bailee must cancel the document or conspicuously note the partial delivery thereon or be liable to any person to whom the document is duly negotiated.

407.603 - ANNOT.

(4) "Person entitled under the document" means holder in the case of a negotiable document, or the person to whom delivery is to be made by the terms of or pursuant to written instructions under a nonnegotiable document.

407.603 - ANNOT.

History: 1983 a. 500 s. 43; 1991 a. 148, 316.

407.603 - ANNOT.

407.404 No liability for good faith delivery pursuant to receipt or bill. A bailee who in good faith including observance of reasonable commercial standards has received goods and delivered or otherwise disposed of them according to the terms of the document of title or pursuant to this chapter is not liable therefor. This rule applies even though the person from whom the bailee received the goods had no authority to procure the document or to dispose of the goods and even though the person to whom the bailee delivered the goods had no authority to receive them.

407.603 - ANNOT.

History: 1991 a. 316.

407.603 - ANNOT.

SUBCHAPTER V

407.603 - ANNOT.

WAREHOUSE RECEIPTS AND BILLS OF LADING: NEGOTIATION AND TRANSFER

407.603 - ANNOT.

407.501 Form of negotiation and requirements of "due negotiation". (1) A negotiable document of title running to the order of a named person is negotiated by that named person's endorsement and delivery. After the named person's endorsement in blank or to bearer any person can negotiate it by delivery alone.

407.603 - ANNOT.

(2) (a) A negotiable document of title is also negotiated by delivery alone when by its original terms it runs to bearer and has not been endorsed to a specified person.

407.603 - ANNOT.

(b) When a document running to the order of a named person is delivered to the named person the effect is the same as if the document had been negotiated.

407.603 - ANNOT.

(3) Negotiation of a negotiable document of title after it has been endorsed to a specified person requires endorsement by the special endorsee as well as delivery.

407.603 - ANNOT.

(4) A negotiable document of title is "duly negotiated" when it is negotiated in the manner stated in this section to a holder who 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 receiving the document in settlement or payment of a money obligation.

407.603 - ANNOT.

(5) Endorsement of a nonnegotiable document neither makes it negotiable nor adds to the transferee's rights.

407.603 - ANNOT.

(6) The naming in a negotiable bill of a person to be notified of the arrival of the goods does not limit the negotiability of the bill nor constitute notice to a purchaser thereof of any interest of such person in the goods.

407.603 - ANNOT.

History: 1991 a. 316.

407.603 - ANNOT.

Buyer in ordinary course of business under article 9 of the uniform commercial code (and related matters). Skilton, 1974 WLR 1.

407.603 - ANNOT.

407.502 Rights acquired by due negotiation. (1) Subject to s. 407.503 and to s. 407.205 on fungible goods, a holder to whom a negotiable document of title has been duly negotiated acquires thereby:

407.603 - ANNOT.

(a) Title to the document;

407.603 - ANNOT.

(b) Title to the goods;

407.603 - ANNOT.

(c) All rights accruing under the law of agency or estoppel, including rights to goods delivered to the bailee after the document was issued; and

407.603 - ANNOT.

(d) The direct obligation of the issuer to hold or deliver the goods according to the terms of the document free of any defense or claim by the issuer except those arising under the terms of the document or under this chapter. In the case of a delivery order the bailee's obligation accrues only upon acceptance and the obligation acquired by the holder is that the issuer and any endorser will procure the acceptance of the bailee.

407.603 - ANNOT.

(2) Subject to s. 407.503, title and rights so acquired are not defeated by any stoppage of the goods represented by the document or by surrender of such goods by the bailee, and are not impaired even though the negotiation or any prior negotiation constituted a breach of duty or even though any person has been deprived of possession of the document by misrepresentation, fraud, accident, mistake, duress, loss, theft or conversion, or even though a previous sale or other transfer of the goods or document has been made to a 3rd person.

407.603 - ANNOT.

History: 1991 a. 316; 2005 a. 253.

407.603 - ANNOT.

407.503 Document of title to goods defeated in certain cases. (1) A document of title confers no right in goods against a person who before issuance of the document had a legal interest or a perfected security interest in them and who neither:

407.603 - ANNOT.

(a) Delivered or entrusted them or any document of title covering them to the bailor or the bailor's nominee with actual or apparent authority to ship, store, or sell or with power to obtain delivery under s. 407.403 or with power of disposition under s. 402.403 or 409.320 or other statute or rule of law; nor

407.603 - ANNOT.

(b) Acquiesced in the procurement by the bailor or the bailor's nominee of any document of title.

407.603 - ANNOT.

(2) Title to goods based upon an unaccepted delivery order is subject to the rights of anyone to whom a negotiable warehouse receipt or bill of lading covering the goods has been duly negotiated. Such a title may be defeated under s. 407.504 to the same extent as the rights of the issuer or a transferee from the issuer.

407.603 - ANNOT.

(3) Title to goods based upon a bill of lading issued to a freight forwarder is subject to the rights of anyone to whom a bill issued by the freight forwarder is duly negotiated; but delivery by the carrier in accordance with ss. 407.401 to 407.404 pursuant to its own bill of lading discharges the carrier's obligation to deliver.

407.603 - ANNOT.

History: 1991 a. 316; 2001 a. 10.

407.603 - ANNOT.

407.504 Rights acquired in the absence of due negotiation; effect of diversion; seller's stoppage of delivery. (1) A transferee of a document, whether negotiable or nonnegotiable, to whom the document has been delivered but not duly negotiated, acquires the title and rights which the transferee's transferor had or had actual authority to convey.

407.603 - ANNOT.

(2) In the case of a nonnegotiable document, until but not after the bailee receives notification of the transfer, the rights of the transferee may be defeated:

407.603 - ANNOT.

(a) By those creditors of the transferor who could treat the sale as void under s. 402.402; or

407.603 - ANNOT.

(b) By a buyer from the transferor in ordinary course of business if the bailee has delivered the goods to the buyer or received notification of the buyer's rights; or

407.603 - ANNOT.

(c) As against the bailee by good faith dealings of the bailee with the transferor.

407.603 - ANNOT.

(3) A diversion or other change of shipping instructions by the consignor in a nonnegotiable bill of lading which causes the bailee not to deliver to the consignee defeats the consignee's title to the goods if they have been delivered to a buyer in ordinary course of business and in any event defeats the consignee's rights against the bailee.

407.603 - ANNOT.

(4) Delivery pursuant to a nonnegotiable document may be stopped by a seller under s. 402.705 or a lessor under s. 411.526, and subject to the requirement of due notification there provided. A bailee honoring the instructions of the seller or lessor is entitled to be indemnified by the seller or lessor against any resulting loss or expense.

407.603 - ANNOT.

History: 1991 a. 148, 316.

407.603 - ANNOT.

407.505 Endorser not a guarantor for other parties. The endorsement of a document of title issued by a bailee does not make the endorser liable for any default by the bailee or by previous endorsers.

407.603 - ANNOT.

407.506 Delivery without endorsement: right to compel endorsement. The transferee of a negotiable document of title has a specifically enforceable right to have the transferee's transferor supply any necessary endorsement but the transfer becomes a negotiation only as of the time the endorsement is supplied.

407.603 - ANNOT.

History: 1991 a. 316.

407.603 - ANNOT.

407.507 Warranties on negotiation or transfer of receipt or bill. Where a person negotiates or transfers a document of title for value otherwise than as a mere intermediary under s. 407.508, then unless otherwise agreed that person warrants to that person's immediate purchaser only in addition to any warranty made in selling the goods:

407.603 - ANNOT.

(1) That the document is genuine; and

407.603 - ANNOT.

(2) That that person has no knowledge of any fact which would impair its validity or worth; and

407.603 - ANNOT.

(3) That that person's negotiation or transfer is rightful and fully effective with respect to the title to the document and the goods it represents.

407.603 - ANNOT.

History: 1991 a. 316.

407.603 - ANNOT.

407.508 Warranties of collecting bank as to documents. A collecting bank or other intermediary known to be entrusted with documents on behalf of another or with collection of a draft or other claim against delivery of documents warrants by such delivery of the documents only its own good faith and authority. This rule applies even though the intermediary has purchased or made advances against the claim or draft to be collected.

407.603 - ANNOT.

407.509 Receipt or bill: when adequate compliance with commercial contract. The question whether a document is adequate to fulfill the obligations of a contract for sale or the conditions of a credit is governed by chs. 402 and 405.

407.603 - ANNOT.

SUBCHAPTER VI

407.603 - ANNOT.

WAREHOUSE RECEIPTS AND BILLS OF LADING:
MISCELLANEOUS PROVISIONS

407.603 - ANNOT.

407.601 Lost and missing documents. (1) If a document has been lost, stolen or destroyed, a court may order delivery of the goods or issuance of a substitute document and the bailee may without liability to any person comply with such order. If the document was negotiable the claimant must post security approved by the court to indemnify any person who may suffer loss as a result of nonsurrender of the document. If the document was not negotiable, such security may be required at the discretion of the court. The court may also in its discretion order payment of the bailee's reasonable costs and counsel fees.

407.603 - ANNOT.

(2) A bailee who without court order delivers goods to a person claiming under a missing negotiable document is liable to any person injured thereby, and if the delivery is not in good faith becomes liable for conversion. Delivery in good faith is not conversion if made in accordance with a filed classification or tariff or, where no classification or tariff is filed, if the claimant posts security with the bailee in an amount at least double the value of the goods at the time of posting to indemnify any person injured by the delivery who files a notice of claim within one year after the delivery.

407.603 - ANNOT.

407.602 Attachment of goods covered by a negotiable document. Except where the document was originally issued upon delivery of the goods by a person who had no power to dispose of them, no lien attaches by virtue of any judicial process to goods in the possession of a bailee for which a negotiable document of title is outstanding unless the document be first surrendered to the bailee or its negotiation enjoined, and the bailee shall not be compelled to deliver the goods pursuant to process until the document is surrendered to the bailee or impounded by the court. One who purchases the document for value without notice of the process or injunction takes free of the lien imposed by judicial process.

407.603 - ANNOT.

History: 1991 a. 316.

407.603 - ANNOT.

407.603 Conflicting claims; interpleader. If more than one person claims title or possession of the goods, the bailee is excused from delivery until the bailee has had a reasonable time to ascertain the validity of the adverse claims or to bring an action to compel all claimants to interplead and may compel such interpleader, either in defending an action for nondelivery of the goods, or by original action, whichever is appropriate.

407.603 - ANNOT.

History: 1991 a. 316.

State Codes and Statutes

State Codes and Statutes

Statutes > Wisconsin > 407 > 407.603

407.603

407.603 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.

407.603 - ANNOT.

History: 2009 a. 322.

407.603 - ANNOT.

NOTE: Chapter 407 is shown as repealed and recreated eff. 8-1-10 by 2009 Wis. Act 322. Prior to 8-1-10 it reads:

407.603 - ANNOT.

SUBCHAPTER I

407.603 - ANNOT.

GENERAL

407.603 - ANNOT.

407.101 Short title. This chapter shall be known and may be cited as uniform commercial codedocuments of title.

407.603 - ANNOT.

407.102 Definitions and index of definitions. (1) In this chapter, unless the context otherwise requires:

407.603 - ANNOT.

(a) "Bailee" means the person who by a warehouse receipt, bill of lading or other document of title acknowledges possession of goods and contracts to deliver them.

407.603 - ANNOT.

(b) "Consignee" means the person named in a bill to whom or to whose order the bill promises delivery.

407.603 - ANNOT.

(c) "Consignor" means the person named in a bill as the person from whom the goods have been received for shipment.

407.603 - ANNOT.

(d) "Delivery order" means a written order to deliver goods directed to a warehouse keeper, carrier or other person who in the ordinary course of business issues warehouse receipts or bills of lading.

407.603 - ANNOT.

(e) "Document" means document of title as defined in s. 401.201.

407.603 - ANNOT.

(f) "Goods" means all things which are treated as movable for the purposes of a contract of storage or transportation.

407.603 - ANNOT.

(g) "Issuer" means a bailee who issues a document except that in relation to an unaccepted delivery order it means the person who orders the possessor of goods to deliver. Issuer includes any person for whom an agent or employee purports to act in issuing a document if the agent or employee has real or apparent authority to issue documents notwithstanding that the issuer received no goods or that the goods were misdescribed or that in any other respect the agent or employee violated the issuer's instructions.

407.603 - ANNOT.

(h) "Warehouse keeper" is a person engaged in the business of storing goods for hire.

407.603 - ANNOT.

(2) Other definitions applying to this chapter or to specified sections thereof, and the sections in which they appear are:

407.603 - ANNOT.

(a) "Duly negotiate" s. 407.501.

407.603 - ANNOT.

(b) "Person entitled under the document" s. 407.403 (4).

407.603 - ANNOT.

(3) Definitions in other chapters applying to this chapter and the sections in which they appear are:

407.603 - ANNOT.

(a) "Contract for sale" s. 402.106.

407.603 - ANNOT.

(am) "Lessor" s. 411.103 (1) (p).

407.603 - ANNOT.

(b) "Overseas" s. 402.323.

407.603 - ANNOT.

(c) "Receipt" of goods s. 402.103.

407.603 - ANNOT.

(4) In addition ch. 401 contains general definitions and principles of construction and interpretation applicable throughout this chapter.

407.603 - ANNOT.

History: 1983 a. 500 s. 43; 1991 a. 148, 316.

407.603 - ANNOT.

407.103 Relation of chapter to treaty, statute, tariff, classification or regulation; laws not repealed. (1) To the extent that any treaty or statute of the United States, regulatory statute of this state or tariff, classification or regulation filed or issued pursuant thereto is applicable, the provisions of this chapter are subject thereto.

407.603 - ANNOT.

(2) This chapter does not repeal or modify any laws prescribing the form or contents of documents of title or the services or facilities to be afforded by bailees, or otherwise regulating bailees' businesses in respects not specifically dealt with herein; but the fact that such laws are violated does not affect the status of a document of title which otherwise complies with the definition of a document of title in s. 401.201.

407.603 - ANNOT.

407.104 Negotiable and nonnegotiable warehouse receipt, bill of lading or other document of title. (1) A warehouse receipt, bill of lading or other document of title is negotiable:

407.603 - ANNOT.

(a) If by its terms the goods are to be delivered to bearer or to the order of a named person; or

407.603 - ANNOT.

(b) Where recognized in overseas trade, if it runs to a named person or assigns.

407.603 - ANNOT.

(2) Any other document is nonnegotiable. A bill of lading in which it is stated that the goods are consigned to a named person is not made negotiable by a provision that the goods are to be delivered only against a written order signed by the same or another named person.

407.603 - ANNOT.

407.105 Construction against negative implication. The omission from either ss. 407.201 to 407.210 or ss. 407.301 to 407.309 of a provision corresponding to a provision contained in the other group of sections does not imply that a corresponding rule of law is not applicable.

407.603 - ANNOT.

SUBCHAPTER II

407.603 - ANNOT.

WAREHOUSE RECEIPTS: SPECIAL PROVISIONS

407.603 - ANNOT.

407.201 Who may issue a warehouse receipt; storage under government bond. (1) A warehouse receipt may be issued by any warehouse keeper.

407.603 - ANNOT.

(2) Where goods including distilled spirits and agricultural commodities are stored under a statute requiring a bond against withdrawal or a license for the issuance of receipts in the nature of warehouse receipts, a receipt issued for the goods has like effect as a warehouse receipt even though issued by a person who is the owner of the goods and is not a warehouse keeper.

407.603 - ANNOT.

History: 1983 a. 500 s. 43.

407.603 - ANNOT.

407.202 Form of warehouse receipt; essential terms; optional terms. (1) A warehouse receipt need not be in any particular form.

407.603 - ANNOT.

(2) Unless a warehouse receipt embodies within its written or printed terms each of the following, the warehouse keeper is liable for damages caused by the omission to a person injured thereby:

407.603 - ANNOT.

(a) The location of the warehouse where the goods are stored;

407.603 - ANNOT.

(b) The date of issue of the receipt;

407.603 - ANNOT.

(c) The consecutive number of the receipt;

407.603 - ANNOT.

(d) A statement whether the goods received will be delivered to the bearer, to a specified person, or to a specified person or the specified person's order;

407.603 - ANNOT.

(e) The rate of storage and handling charges, except that where goods are stored under a field warehousing arrangement a statement of that fact is sufficient on a nonnegotiable receipt;

407.603 - ANNOT.

(f) A description of the goods or of the packages containing them;

407.603 - ANNOT.

(g) The signature of the warehouse keeper, which may be made by the warehouse keeper's authorized agent;

407.603 - ANNOT.

(h) If the receipt is issued for goods of which the warehouse keeper is owner, either solely or jointly or in common with others, the fact of such ownership; and

407.603 - ANNOT.

(i) A statement of the amount of advances made and of liabilities incurred for which the warehouse keeper claims a lien or security interest (s. 407.209). If the precise amount of such advances made or of such liabilities incurred is, at the time of the issue of the receipt, unknown to the warehouse keeper or to the warehouse keeper's agent who issues it, a statement of the fact that advances have been made or liabilities incurred and the purpose thereof is sufficient.

407.603 - ANNOT.

(3) A warehouse keeper may insert in his or her receipt any other terms which are not contrary to chs. 401 to 411 and do not impair his or her obligation of delivery (s. 407.403) or his or her duty of care (s. 407.204). Any contrary provisions are ineffective.

407.603 - ANNOT.

History: 1979 c. 89; 1983 a. 500 s. 43; 1991 a. 148, 304, 315, 316.

407.603 - ANNOT.

407.203 Liability for nonreceipt or misdescription. A party to or purchaser for value in good faith of a document of title other than a bill of lading relying in either case upon the description therein of the goods may recover from the issuer damages caused by the nonreceipt or misdescription of the goods, except to the extent that the document conspicuously indicates that the issuer does not know whether any part or all of the goods in fact were received or conform to the description, as where the description is in terms of marks or labels or kind, quantity or condition, or the receipt or description is qualified by "contents, condition and quality unknown", "said to contain" or the like, if such indication be true, or the party or purchaser otherwise has notice.

407.603 - ANNOT.

407.204 Duty of care; contractual limitation of warehouse keeper's liability. (1) A warehouse keeper is liable for damages for loss of or injury to the goods caused by failure to exercise such care in regard to them as a reasonably careful person would exercise under like circumstances but unless otherwise agreed the warehouse keeper is not liable for damages which could not have been avoided by the exercise of such care.

407.603 - ANNOT.

(2) Damages may be limited by a conspicuous term in the warehouse receipt or storage agreement limiting the amount of liability in case of loss or damage, and setting forth a specific liability per article or item, or value per unit of weight, beyond which the warehouse keeper shall not be liable; however, such liability may on written request of the bailor at the time of signing such storage agreement or within a reasonable time after receipt of the warehouse receipt be increased on part or all of the goods thereunder, in which event increased rates may be charged based on such increased valuation, but no such increase shall be permitted contrary to a lawful limitation of liability contained in the warehouse keeper's tariff, if any. No such limitation is effective with respect to the warehouse keeper's liability for conversion to the warehouse keeper's own use.

407.603 - ANNOT.

(3) Reasonable provisions as to the time and manner of presenting claims and instituting actions based on the bailment may be included in the warehouse receipt or tariff.

407.603 - ANNOT.

History: 1975 c. 94, 200; 1983 a. 500 s. 43; 1991 a. 316.

407.603 - ANNOT.

407.205 Title under warehouse receipt defeated in certain cases. A buyer in the ordinary course of business of fungible goods sold and delivered by a warehouse keeper who is also in the business of buying and selling such goods takes free of any claim under a warehouse receipt even though it has been duly negotiated.

407.603 - ANNOT.

History: 1983 a. 500 s. 43.

407.603 - ANNOT.

407.206 Termination of storage at warehouse keeper's option. (1) A warehouse keeper may on notifying the person on whose account the goods are held and any other person known to claim an interest in the goods require payment of any charges and removal of the goods from the warehouse at the termination of the period of storage fixed by the document, or, if no period is fixed, within a stated period not less than 30 days after the notification. If the goods are not removed before the date specified in the notification, the warehouse keeper may sell them in accordance with s. 407.210 on enforcement of a warehouse keeper's lien.

407.603 - ANNOT.

(2) If a warehouse keeper in good faith believes that the goods are about to deteriorate or decline in value to less than the amount of the warehouse keeper's lien within the time prescribed in sub. (1) for notification, advertisement and sale, the warehouse keeper may specify in the notification any reasonable shorter time for removal of the goods and in case the goods are not removed, may sell them at public sale held not less than one week after publication of a class 1 notice, under ch. 985.

407.603 - ANNOT.

(3) If as a result of a quality or condition of the goods of which the warehouse keeper had no notice at the time of deposit the goods are a hazard to other property or to the warehouse or to persons, the warehouse keeper may sell the goods at public or private sale without advertisement on reasonable notification to all persons known to claim an interest in the goods. If the warehouse keeper after a reasonable effort is unable to sell the goods the warehouse keeper may dispose of them in any lawful manner and shall incur no liability by reason of such disposition.

407.603 - ANNOT.

(4) The warehouse keeper must deliver the goods to any person entitled to them under this chapter upon due demand made at any time prior to sale or other disposition under this section.

407.603 - ANNOT.

(5) The warehouse keeper may satisfy the warehouse keeper's lien from the proceeds of any sale or disposition under this section but must hold the balance for delivery on the demand of any person to whom the warehouse keeper would have been bound to deliver the goods.

407.603 - ANNOT.

History: 1983 a. 500 s. 43; 1991 a. 316.

407.603 - ANNOT.

407.207 Goods must be kept separate; fungible goods. (1) Unless the warehouse receipt otherwise provides, a warehouse keeper must keep separate the goods covered by each receipt so as to permit at all times identification and delivery of those goods except that different lots of fungible goods may be commingled.

407.603 - ANNOT.

(2) Fungible goods so commingled are owned in common by the persons entitled thereto and the warehouse keeper is severally liable to each owner for that owner's share. Where because of overissue a mass of fungible goods is insufficient to meet all the receipts which the warehouse keeper has issued against it, the persons entitled include all holders to whom overissued receipts have been duly negotiated.

407.603 - ANNOT.

History: 1983 a. 500 s. 43.

407.603 - ANNOT.

407.208 Altered warehouse receipts. Where a blank in a negotiable warehouse receipt has been filled in without authority, a purchaser for value and without notice of the want of authority may treat the insertion as authorized. Any other unauthorized alteration leaves any receipt enforceable against the issuer according to its original tenor.

407.603 - ANNOT.

407.209 Lien of warehouse keeper. (1) A warehouse keeper has a lien against the bailor on the goods covered by a warehouse receipt or on the proceeds thereof in the warehouse keeper's possession for charges for storage or transportation (including demurrage and terminal charges), insurance, labor, or charges present or future in relation to the goods, and for expenses necessary for preservation of the goods or reasonably incurred in their sale pursuant to law. If the person on whose account the goods are held is liable for like charges or expenses in relation to other goods whenever deposited and it is stated in the receipt that a lien is claimed for charges and expenses in relation to other goods, the warehouse keeper also has a lien against that person for such charges and expenses whether or not the other goods have been delivered by the warehouse keeper. But against a person to whom a negotiable warehouse receipt is duly negotiated a warehouse keeper's lien is limited to charges in an amount or at a rate specified on the receipt or if no charges are so specified then to a reasonable charge for storage of the goods covered by the receipt subsequent to the date of the receipt.

407.603 - ANNOT.

(2) The warehouse keeper may also reserve a security interest against the bailor for a maximum amount specified on the receipt for charges other than those specified in sub. (1), such as for money advanced and interest. Such a security interest is governed by ch. 409.

407.603 - ANNOT.

(3) A warehouse keeper's lien for charges and expenses under sub. (1) or a security interest under sub. (2) is also effective against any person who so entrusted the bailor with possession of the goods that a pledge of them by the bailor to a good faith purchaser for value would have been valid but is not effective against a person as to whom the document confers no right in the goods covered by it under s. 407.503.

407.603 - ANNOT.

(4) A warehouse keeper loses the warehouse keeper's lien on any goods which the warehouse keeper voluntarily delivers or unjustifiably refuses to deliver.

407.603 - ANNOT.

History: 1983 a. 500 s. 43; 1991 a. 316.

407.603 - ANNOT.

407.210 Enforcement of warehouse keeper's lien. (1) Except as provided in sub. (2), a warehouse keeper's lien may be enforced by public or private sale of the goods in bloc or in parcels, at any time or place and on any terms which are commercially reasonable, after notifying all persons known to claim an interest in the goods. Such 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 different method from that selected by the warehouse keeper is not of itself sufficient to establish that the sale was not made in a commercially reasonable manner. If the warehouse keeper either sells the goods in the usual manner in any recognized market therefor, or at the price current in such market at the time of the sale, or if the warehouse keeper has otherwise sold in conformity with commercially reasonable practices among dealers in the type of goods sold, the warehouse keeper has sold in a commercially reasonable manner. A sale of more goods than apparently necessary to be offered to insure satisfaction of the obligation is not commercially reasonable except in cases covered by the preceding sentence.

407.603 - ANNOT.

(2) A warehouse keeper's lien on goods, other than goods stored by a merchant in the course of his or her business, may be enforced as provided in sub. (1) if all of the following are satisfied:

407.603 - ANNOT.

(a) The warehouse keeper notifies all persons known to claim an interest in the goods by delivering in person or sending by registered or certified mail to the last-known address of persons known to claim an interest in the goods the notice specified in par. (b).

407.603 - ANNOT.

(b) The notice includes an itemized statement of the claim, a description of the goods subject to the lien, a demand for payment within a specified time not less than 30 days after receipt of the notification, and a conspicuous statement that unless the claim is paid within that time the goods will be sold by public or private sale.

407.603 - ANNOT.

(3) 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 under this section. In that event the goods must not be sold, but must be retained by the warehouse keeper subject to the terms of the receipt and this chapter.

407.603 - ANNOT.

(4) The warehouse keeper may buy at any public sale pursuant to this section.

407.603 - ANNOT.

(5) A purchaser in good faith of goods sold to enforce a warehouse keeper's lien takes the goods free of any rights of persons against whom the lien was valid, despite noncompliance by the warehouse keeper with the requirements of this section.

407.603 - ANNOT.

(6) The warehouse keeper may satisfy the warehouse keeper's lien from the proceeds of any sale pursuant to this section but must hold the balance, if any, for delivery on demand to any person to whom the warehouse keeper would have been bound to deliver the goods.

407.603 - ANNOT.

(7) The rights provided by this section shall be in addition to all other rights allowed by law to a creditor against the creditor's debtor.

407.603 - ANNOT.

(8) Where a lien is on goods stored by a merchant in the course of the merchant's business the lien may be enforced in accordance with either sub. (1) or (2).

407.603 - ANNOT.

(9) The warehouse keeper is liable for damages caused by failure to comply with the requirements for sale under this section and in case of willful violation is liable for conversion.

407.603 - ANNOT.

History: 1983 a. 500 s. 43; 1987 a. 213; 1991 a. 316.

407.603 - ANNOT.

A warehouse keeper's proposed sale of goods entrusted to him for storage was not an action properly attributable to the state. Flagg Bros., Inc. v. Brooks, 436 U.S. 149 (1978).

407.603 - ANNOT.

Warehouse keeper's liens may constitutionally be enforced against tenants dispossessed under s. 299.45, 1977 stats. [now s. 799.45]. Wegwart v. Eagle Movers, Inc. 441 F. Supp. 872 (1977).

407.603 - ANNOT.

A warehouse keeper's conduct in enforcing liens against a dispossessed tenant was not attributable to the state. Wegwart v. Eagle Movers, Inc. 467 F. Supp. 573 (1979).

407.603 - ANNOT.

SUBCHAPTER III

407.603 - ANNOT.

BILLS OF LADING: SPECIAL PROVISIONS

407.603 - ANNOT.

407.301 Liability for nonreceipt or misdescription; "said to contain"; "shipper's load and count"; improper handling. (1) A consignee of a nonnegotiable bill who has given value in good faith or a holder to whom a negotiable bill has been duly negotiated relying in either case upon the description therein of the goods, or upon the date therein shown, may recover from the issuer damages caused by the misdating of the bill or the nonreceipt or misdescription of the goods, except to the extent that the document indicates that the issuer does not know whether any part or all of the goods in fact were received or conform to the description, as where the description is in terms of marks or labels or kind, quantity, or condition or the receipt or description is qualified by "contents or condition of contents of packages unknown", "said to contain", "shipper's weight, load and count" or the like, if such indication is true.

407.603 - ANNOT.

(2) When goods are loaded by an issuer who is a common carrier, the issuer must count the packages of goods if package freight and ascertain the kind and quantity if bulk freight. In such cases "shipper's weight, load and count" or other words indicating that the description was made by the shipper are ineffective except as to freight concealed by packages.

407.603 - ANNOT.

(3) When bulk freight is loaded by a shipper who makes available to the issuer adequate facilities for weighing such freight, an issuer who is a common carrier must ascertain the kind and quantity within a reasonable time after receiving the written request of the shipper to do so. In such cases "shipper's weight" or other words of like purport are ineffective.

407.603 - ANNOT.

(4) The issuer may by inserting in the bill the words "shipper's weight, load and count" or other words of like purport indicate that the goods were loaded by the shipper; and if such statement is true the issuer shall not be liable for damages caused by the improper loading. But their omission does not imply liability for such damages.

407.603 - ANNOT.

(5) The shipper shall be deemed to have guaranteed to the issuer the accuracy at the time of shipment of the description, marks, labels, number, kind, quantity, condition and weight, as furnished by the shipper; and the shipper shall indemnify the issuer against damage caused by inaccuracies in such particulars. The right of the issuer to such indemnity shall in no way limit the issuer's responsibility and liability under the contract of carriage to any person other than the shipper.

407.603 - ANNOT.

History: 1991 a. 316.

407.603 - ANNOT.

407.302 Through bills of lading and similar documents. (1) The issuer of a through bill of lading or other document embodying an undertaking to be performed in part by persons acting as its agents or by connecting carriers is liable to anyone entitled to recover on the document for any breach by such other persons or by a connecting carrier of its obligation under the document but to the extent that the bill covers an undertaking to be performed overseas or in territory not contiguous to the continental United States or an undertaking including matters other than transportation this liability may be varied by agreement of the parties.

407.603 - ANNOT.

(2) Where goods covered by a through bill of lading or other document embodying an undertaking to be performed in part by persons other than the issuer are received by any such person, that person is subject with respect to that person's own performance while the goods are in that person's possession to the obligation of the issuer. That person's obligation is discharged by delivery of the goods to another such person pursuant to the document, and does not include liability for breach by any other such persons or by the issuer.

407.603 - ANNOT.

(3) The issuer of such through bill of lading or other document shall be entitled to recover from the connecting carrier or such other person in possession of the goods when the breach of the obligation under the document occurred, the amount it may be required to pay to anyone entitled to recover on the document therefor, as may be evidenced by any receipt, judgment, or transcript thereof, and the amount of any expense reasonably incurred by it in defending any action brought by anyone entitled to recover on the document therefor.

407.603 - ANNOT.

History: 1991 a. 316.

407.603 - ANNOT.

407.303 Diversion; reconsignment; change of instructions. (1) Unless the bill of lading otherwise provides, the carrier may deliver the goods to a person or destination other than that stated in the bill or may otherwise dispose of the goods on instructions from:

407.603 - ANNOT.

(a) The holder of a negotiable bill; or

407.603 - ANNOT.

(b) The consignor on a nonnegotiable bill notwithstanding contrary instructions from the consignee; or

407.603 - ANNOT.

(c) The consignee on a nonnegotiable bill in the absence of contrary instructions from the consignor, if the goods have arrived at the billed destination or if the consignee is in possession of the bill; or

407.603 - ANNOT.

(d) The consignee on a nonnegotiable bill if the consignee is entitled as against the consignor to dispose of them.

407.603 - ANNOT.

(2) Unless such instructions are noted on a negotiable bill of lading, a person to whom the bill is duly negotiated can hold the bailee according to the original terms.

407.603 - ANNOT.

History: 1991 a. 316.

407.603 - ANNOT.

407.304 Bills of lading in a set. (1) Except where customary in overseas transportation, a bill of lading must not be issued in a set of parts. The issuer is liable for damages caused by violation of this subsection.

407.603 - ANNOT.

(2) Where a bill of lading is lawfully drawn in a set of parts, each of which is numbered and expressed to be valid only if the goods have not been delivered against any other part, the whole of the parts constitute one bill.

407.603 - ANNOT.

(3) Where a bill of lading is lawfully issued in a set of parts and different parts are negotiated to different persons, the title of the holder to whom the first due negotiation is made prevails as to both the document and the goods even though any later holder may have received the goods from the carrier in good faith and discharged the carrier's obligation by surrender of his or her part.

407.603 - ANNOT.

(4) Any person who negotiates or transfers a single part of a bill of lading drawn in a set is liable to holders of that part as if it were the whole set.

407.603 - ANNOT.

(5) The bailee is obliged to deliver in accordance with ss. 407.401 to 407.404 against the first presented part of a bill of lading lawfully drawn in a set. Such delivery discharges the bailee's obligation on the whole bill.

407.603 - ANNOT.

History: 1991 a. 316.

407.603 - ANNOT.

407.305 Destination bills. (1) Instead of issuing a bill of lading to the consignor at the place of shipment a carrier may at the request of the consignor procure the bill to be issued at destination or at any other place designated in the request.

407.603 - ANNOT.

(2) Upon request of anyone entitled as against the carrier to control the goods while in transit and on surrender of any outstanding bill of lading or other receipt covering such goods, the issuer may procure a substitute bill to be issued at any place designated in the request.

407.603 - ANNOT.

407.306 Altered bills of lading. An unauthorized alteration or filling in of a blank in a bill of lading leaves the bill enforceable according to its original tenor.

407.603 - ANNOT.

407.307 Lien of carrier. (1) A carrier has a lien on the goods covered by a bill of lading for charges subsequent to the date of its receipt of the goods for storage or transportation (including demurrage and terminal charges) and for expenses necessary for preservation of the goods incident to their transportation or reasonably incurred in their sale pursuant to law. But against a purchaser for value of a negotiable bill of lading a carrier's lien is limited to charges stated in the bill or the applicable tariffs, or if no charges are stated then to a reasonable charge.

407.603 - ANNOT.

(2) A lien for charges and expenses under sub. (1) on goods which the carrier was required by law to receive for transportation is effective against the consignor or any person entitled to the goods unless the carrier had notice that the consignor lacked authority to subject the goods to such charges and expenses. Any other lien under sub. (1) is effective against the consignor and any person who permitted the bailor to have control or possession of the goods unless the carrier had notice that the bailor lacked such authority.

407.603 - ANNOT.

(3) A carrier loses the carrier's lien on any goods which the carrier voluntarily delivers or which the carrier unjustifiably refuses to deliver.

407.603 - ANNOT.

History: 1991 a. 316.

407.603 - ANNOT.

407.308 Enforcement of carrier's lien. (1) A carrier's lien may be enforced by public or private sale of the goods, in bloc or in parcels, at any time or place and on any terms which are commercially reasonable, after notifying all persons known to claim an interest in the goods. Such 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 different method from that selected by the carrier is not of itself sufficient to establish that the sale was not made in a commercially reasonable manner. If the carrier either sells the goods in the usual manner in any recognized market therefor or if the carrier sells at the price current in such market at the time of the sale or if the carrier has otherwise sold in conformity with commercially reasonable practices among dealers in the type of goods sold, the carrier has sold in a commercially reasonable manner. 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.

407.603 - ANNOT.

(2) 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 under this section. In that event the goods must not be sold, but must be retained by the carrier subject to the terms of the bill and this chapter.

407.603 - ANNOT.

(3) The carrier may buy at any public sale pursuant to this section.

407.603 - ANNOT.

(4) A purchaser in good faith of goods sold to enforce a carrier's lien takes the goods free of any rights of persons against whom the lien was valid, despite noncompliance by the carrier with the requirements of this section.

407.603 - ANNOT.

(5) The carrier may satisfy the carrier's lien from the proceeds of any sale pursuant to this section but must hold the balance, if any, for delivery on demand to any person to whom the carrier would have been bound to deliver the goods.

407.603 - ANNOT.

(6) The rights provided by this section are in addition to all other rights allowed by law to a creditor against the creditor's debtor.

407.603 - ANNOT.

(7) A carrier's lien may be enforced in accordance with either sub. (1) or the procedure set forth in s. 407.210 (2).

407.603 - ANNOT.

(8) The carrier is liable for damages caused by failure to comply with the requirements for sale under this section and in case of willful violation is liable for conversion.

407.603 - ANNOT.

History: 1991 a. 316.

407.603 - ANNOT.

407.309 Duty of care; contractual limitation of carrier's liability. (1) A carrier who issues a bill of lading whether negotiable or nonnegotiable must exercise the degree of care in relation to the goods which a reasonably careful person would exercise under like circumstances. This subsection does not repeal or change any law or rule of law which imposes liability upon a common carrier for damages not caused by its negligence.

407.603 - ANNOT.

(2) Damages may be limited by a provision that the carrier's liability shall not exceed a value stated in the document if the carrier's rates are dependent upon value and the consignor by the carrier's tariff is afforded an opportunity to declare a higher value or a value as lawfully provided in the tariff, or where no tariff is filed he or she is otherwise advised of such opportunity; but no such limitation is effective with respect to the carrier's liability for conversion to its own use.

407.603 - ANNOT.

(3) Reasonable provisions as to the time and manner of presenting claims and instituting actions based on the shipment may be included in a bill of lading or tariff.

407.603 - ANNOT.

History: 1975 c. 94 s. 91 (12); 1991 a. 316.

407.603 - ANNOT.

SUBCHAPTER IV

407.603 - ANNOT.

WAREHOUSE RECEIPTS AND BILLS OF LADING:
GENERAL OBLIGATIONS

407.603 - ANNOT.

407.401 Irregularities in issue of receipt or bill or conduct of issuer. The obligations imposed by this chapter on an issuer apply to a document of title regardless of the fact that:

407.603 - ANNOT.

(1) The document may not comply with the requirements of this chapter or of any other law or regulation regarding its issue, form or content; or

407.603 - ANNOT.

(2) The issuer may have violated laws regulating the conduct of the issuer's business; or

407.603 - ANNOT.

(3) The goods covered by the document were owned by the bailee at the time the document was issued; or

407.603 - ANNOT.

(4) The person issuing the document does not come within the definition of warehouse keeper if it purports to be a warehouse receipt.

407.603 - ANNOT.

History: 1983 a. 500 s. 43; 1991 a. 316.

407.603 - ANNOT.

407.402 Duplicate receipt or bill; overissue. Neither a duplicate nor any other document of title purporting to cover goods already represented by an outstanding document of the same issuer confers any right in the goods, except as provided in the case of bills in a set, overissue of documents for fungible goods and substitutes for lost, stolen or destroyed documents. But the issuer is liable for damages caused by the issuer's overissue or failure to identify a duplicate document as such by conspicuous notation on its face.

407.603 - ANNOT.

History: 1991 a. 316.

407.603 - ANNOT.

407.403 Obligation of warehouse keeper or carrier to deliver; excuse. (1) The bailee must deliver the goods to a person entitled under the document who complies with subs. (2) and (3), unless and to the extent that the bailee establishes any of the following:

407.603 - ANNOT.

(a) Delivery of the goods to a person whose receipt was rightful as against the claimant;

407.603 - ANNOT.

(b) Damage to or delay, loss or destruction of the goods for which the bailee is not liable;

407.603 - ANNOT.

(c) Previous sale or other disposition of the goods in lawful enforcement of a lien or on warehouse keeper's lawful termination of storage;

407.603 - ANNOT.

(d) The exercise by a seller or lessor of the right to stop delivery pursuant to s. 402.705 or 411.526;

407.603 - ANNOT.

(e) A diversion, reconsignment or other disposition pursuant to s. 407.303 or tariff regulating such right;

407.603 - ANNOT.

(f) Release, satisfaction or any other fact affording a personal defense against the claimant;

407.603 - ANNOT.

(g) Any other lawful excuse.

407.603 - ANNOT.

(2) A person claiming goods covered by a document of title must satisfy the bailee's lien where the bailee so requests or where the bailee is prohibited by law from delivering the goods until the charges are paid.

407.603 - ANNOT.

(3) Unless the person claiming is one against whom the document confers no right under s. 407.503 (1), that person must surrender for cancellation or notation of partial deliveries any outstanding negotiable document covering the goods, and the bailee must cancel the document or conspicuously note the partial delivery thereon or be liable to any person to whom the document is duly negotiated.

407.603 - ANNOT.

(4) "Person entitled under the document" means holder in the case of a negotiable document, or the person to whom delivery is to be made by the terms of or pursuant to written instructions under a nonnegotiable document.

407.603 - ANNOT.

History: 1983 a. 500 s. 43; 1991 a. 148, 316.

407.603 - ANNOT.

407.404 No liability for good faith delivery pursuant to receipt or bill. A bailee who in good faith including observance of reasonable commercial standards has received goods and delivered or otherwise disposed of them according to the terms of the document of title or pursuant to this chapter is not liable therefor. This rule applies even though the person from whom the bailee received the goods had no authority to procure the document or to dispose of the goods and even though the person to whom the bailee delivered the goods had no authority to receive them.

407.603 - ANNOT.

History: 1991 a. 316.

407.603 - ANNOT.

SUBCHAPTER V

407.603 - ANNOT.

WAREHOUSE RECEIPTS AND BILLS OF LADING: NEGOTIATION AND TRANSFER

407.603 - ANNOT.

407.501 Form of negotiation and requirements of "due negotiation". (1) A negotiable document of title running to the order of a named person is negotiated by that named person's endorsement and delivery. After the named person's endorsement in blank or to bearer any person can negotiate it by delivery alone.

407.603 - ANNOT.

(2) (a) A negotiable document of title is also negotiated by delivery alone when by its original terms it runs to bearer and has not been endorsed to a specified person.

407.603 - ANNOT.

(b) When a document running to the order of a named person is delivered to the named person the effect is the same as if the document had been negotiated.

407.603 - ANNOT.

(3) Negotiation of a negotiable document of title after it has been endorsed to a specified person requires endorsement by the special endorsee as well as delivery.

407.603 - ANNOT.

(4) A negotiable document of title is "duly negotiated" when it is negotiated in the manner stated in this section to a holder who 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 receiving the document in settlement or payment of a money obligation.

407.603 - ANNOT.

(5) Endorsement of a nonnegotiable document neither makes it negotiable nor adds to the transferee's rights.

407.603 - ANNOT.

(6) The naming in a negotiable bill of a person to be notified of the arrival of the goods does not limit the negotiability of the bill nor constitute notice to a purchaser thereof of any interest of such person in the goods.

407.603 - ANNOT.

History: 1991 a. 316.

407.603 - ANNOT.

Buyer in ordinary course of business under article 9 of the uniform commercial code (and related matters). Skilton, 1974 WLR 1.

407.603 - ANNOT.

407.502 Rights acquired by due negotiation. (1) Subject to s. 407.503 and to s. 407.205 on fungible goods, a holder to whom a negotiable document of title has been duly negotiated acquires thereby:

407.603 - ANNOT.

(a) Title to the document;

407.603 - ANNOT.

(b) Title to the goods;

407.603 - ANNOT.

(c) All rights accruing under the law of agency or estoppel, including rights to goods delivered to the bailee after the document was issued; and

407.603 - ANNOT.

(d) The direct obligation of the issuer to hold or deliver the goods according to the terms of the document free of any defense or claim by the issuer except those arising under the terms of the document or under this chapter. In the case of a delivery order the bailee's obligation accrues only upon acceptance and the obligation acquired by the holder is that the issuer and any endorser will procure the acceptance of the bailee.

407.603 - ANNOT.

(2) Subject to s. 407.503, title and rights so acquired are not defeated by any stoppage of the goods represented by the document or by surrender of such goods by the bailee, and are not impaired even though the negotiation or any prior negotiation constituted a breach of duty or even though any person has been deprived of possession of the document by misrepresentation, fraud, accident, mistake, duress, loss, theft or conversion, or even though a previous sale or other transfer of the goods or document has been made to a 3rd person.

407.603 - ANNOT.

History: 1991 a. 316; 2005 a. 253.

407.603 - ANNOT.

407.503 Document of title to goods defeated in certain cases. (1) A document of title confers no right in goods against a person who before issuance of the document had a legal interest or a perfected security interest in them and who neither:

407.603 - ANNOT.

(a) Delivered or entrusted them or any document of title covering them to the bailor or the bailor's nominee with actual or apparent authority to ship, store, or sell or with power to obtain delivery under s. 407.403 or with power of disposition under s. 402.403 or 409.320 or other statute or rule of law; nor

407.603 - ANNOT.

(b) Acquiesced in the procurement by the bailor or the bailor's nominee of any document of title.

407.603 - ANNOT.

(2) Title to goods based upon an unaccepted delivery order is subject to the rights of anyone to whom a negotiable warehouse receipt or bill of lading covering the goods has been duly negotiated. Such a title may be defeated under s. 407.504 to the same extent as the rights of the issuer or a transferee from the issuer.

407.603 - ANNOT.

(3) Title to goods based upon a bill of lading issued to a freight forwarder is subject to the rights of anyone to whom a bill issued by the freight forwarder is duly negotiated; but delivery by the carrier in accordance with ss. 407.401 to 407.404 pursuant to its own bill of lading discharges the carrier's obligation to deliver.

407.603 - ANNOT.

History: 1991 a. 316; 2001 a. 10.

407.603 - ANNOT.

407.504 Rights acquired in the absence of due negotiation; effect of diversion; seller's stoppage of delivery. (1) A transferee of a document, whether negotiable or nonnegotiable, to whom the document has been delivered but not duly negotiated, acquires the title and rights which the transferee's transferor had or had actual authority to convey.

407.603 - ANNOT.

(2) In the case of a nonnegotiable document, until but not after the bailee receives notification of the transfer, the rights of the transferee may be defeated:

407.603 - ANNOT.

(a) By those creditors of the transferor who could treat the sale as void under s. 402.402; or

407.603 - ANNOT.

(b) By a buyer from the transferor in ordinary course of business if the bailee has delivered the goods to the buyer or received notification of the buyer's rights; or

407.603 - ANNOT.

(c) As against the bailee by good faith dealings of the bailee with the transferor.

407.603 - ANNOT.

(3) A diversion or other change of shipping instructions by the consignor in a nonnegotiable bill of lading which causes the bailee not to deliver to the consignee defeats the consignee's title to the goods if they have been delivered to a buyer in ordinary course of business and in any event defeats the consignee's rights against the bailee.

407.603 - ANNOT.

(4) Delivery pursuant to a nonnegotiable document may be stopped by a seller under s. 402.705 or a lessor under s. 411.526, and subject to the requirement of due notification there provided. A bailee honoring the instructions of the seller or lessor is entitled to be indemnified by the seller or lessor against any resulting loss or expense.

407.603 - ANNOT.

History: 1991 a. 148, 316.

407.603 - ANNOT.

407.505 Endorser not a guarantor for other parties. The endorsement of a document of title issued by a bailee does not make the endorser liable for any default by the bailee or by previous endorsers.

407.603 - ANNOT.

407.506 Delivery without endorsement: right to compel endorsement. The transferee of a negotiable document of title has a specifically enforceable right to have the transferee's transferor supply any necessary endorsement but the transfer becomes a negotiation only as of the time the endorsement is supplied.

407.603 - ANNOT.

History: 1991 a. 316.

407.603 - ANNOT.

407.507 Warranties on negotiation or transfer of receipt or bill. Where a person negotiates or transfers a document of title for value otherwise than as a mere intermediary under s. 407.508, then unless otherwise agreed that person warrants to that person's immediate purchaser only in addition to any warranty made in selling the goods:

407.603 - ANNOT.

(1) That the document is genuine; and

407.603 - ANNOT.

(2) That that person has no knowledge of any fact which would impair its validity or worth; and

407.603 - ANNOT.

(3) That that person's negotiation or transfer is rightful and fully effective with respect to the title to the document and the goods it represents.

407.603 - ANNOT.

History: 1991 a. 316.

407.603 - ANNOT.

407.508 Warranties of collecting bank as to documents. A collecting bank or other intermediary known to be entrusted with documents on behalf of another or with collection of a draft or other claim against delivery of documents warrants by such delivery of the documents only its own good faith and authority. This rule applies even though the intermediary has purchased or made advances against the claim or draft to be collected.

407.603 - ANNOT.

407.509 Receipt or bill: when adequate compliance with commercial contract. The question whether a document is adequate to fulfill the obligations of a contract for sale or the conditions of a credit is governed by chs. 402 and 405.

407.603 - ANNOT.

SUBCHAPTER VI

407.603 - ANNOT.

WAREHOUSE RECEIPTS AND BILLS OF LADING:
MISCELLANEOUS PROVISIONS

407.603 - ANNOT.

407.601 Lost and missing documents. (1) If a document has been lost, stolen or destroyed, a court may order delivery of the goods or issuance of a substitute document and the bailee may without liability to any person comply with such order. If the document was negotiable the claimant must post security approved by the court to indemnify any person who may suffer loss as a result of nonsurrender of the document. If the document was not negotiable, such security may be required at the discretion of the court. The court may also in its discretion order payment of the bailee's reasonable costs and counsel fees.

407.603 - ANNOT.

(2) A bailee who without court order delivers goods to a person claiming under a missing negotiable document is liable to any person injured thereby, and if the delivery is not in good faith becomes liable for conversion. Delivery in good faith is not conversion if made in accordance with a filed classification or tariff or, where no classification or tariff is filed, if the claimant posts security with the bailee in an amount at least double the value of the goods at the time of posting to indemnify any person injured by the delivery who files a notice of claim within one year after the delivery.

407.603 - ANNOT.

407.602 Attachment of goods covered by a negotiable document. Except where the document was originally issued upon delivery of the goods by a person who had no power to dispose of them, no lien attaches by virtue of any judicial process to goods in the possession of a bailee for which a negotiable document of title is outstanding unless the document be first surrendered to the bailee or its negotiation enjoined, and the bailee shall not be compelled to deliver the goods pursuant to process until the document is surrendered to the bailee or impounded by the court. One who purchases the document for value without notice of the process or injunction takes free of the lien imposed by judicial process.

407.603 - ANNOT.

History: 1991 a. 316.

407.603 - ANNOT.

407.603 Conflicting claims; interpleader. If more than one person claims title or possession of the goods, the bailee is excused from delivery until the bailee has had a reasonable time to ascertain the validity of the adverse claims or to bring an action to compel all claimants to interplead and may compel such interpleader, either in defending an action for nondelivery of the goods, or by original action, whichever is appropriate.

407.603 - ANNOT.

History: 1991 a. 316.

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