Printable Format84-7-603. Conflicting claims; interpleader. If more than one person claims title to or possession of the goods, the bailee is excused from delivery until the bailee has a reasonable time to ascertain the validity of the adverse claims or to commence an action for interpleader. The bailee may assert an interpleader either in defending an action for nondelivery of the goods or by original action.
History: L. 2007, ch. 90, § 41; July 1, 2008.
KANSAS COMMENT, 1996
This section is a consolidation of former K.S.A. 82-116 through 82-118 and is in accord with present K.S.A. 34-260 and 34-261. A bailee is allowed to compel conflicting claimants to litigate with each other instead of with him. For illustrations of this section, see Blumenthal v. Monumental Security Storage, Inc., 271 Md. 298, 316 A.2d 243 (1974); Bishop v. Allied Van Lines, Inc., 80 Ill. App.3d 306, 399 N.E.2d 698 (1980).
In Petroleum Products, Inc. v. Mid-America Pipeline Co., 815 F. Supp. 1421 (D. Kan. 1993), the court held that a carrier did not have to bring an 84-7-603 interpleader. The buyer had gone into bankruptcy after the goods had been shipped, and the issue of whether the seller or the buyer's trustee in bankruptcy was entitled to the goods was pending before the bankruptcy court. Bringing a separate interpleader action would have served no useful purpose. The court also held the carrier was not entitled to demand a letter of credit as security from the seller as a condition for the seller's attempt to stop delivery under 84-2-705.
Revisor's Note:
Former section 84-7-603 repealed by L. 2007, ch. 90, § 78 and the number reassigned to the current text.
CASE ANNOTATIONS
1. Non-UCC option not available to seller stopping common carrier from delivering goods to insolvent buyer. Petroleum Products v. Mid-America Pipeline, 815 F. Supp. 1421, 1423 (1993).