41-07-23. (7-307) Lien of carrier.
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/nd/title-41/chapter-41-07-documents-of-title/41-07-23·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
1. A carrier has a lien on the goods covered by a bill of lading or on the proceeds thereof
in its possession for charges after the date of the carrier's 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. However, 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, a reasonable charge.
2. A lien for charges and expenses under subsection 1 on goods that 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 those charges and expenses. Any other lien under
subsection 1 is effective against the consignor and any person that permitted the bailor
to have control or possession of the goods unless the carrier had notice that the bailor
lacked authority.
3. A carrier loses its lien on any goods that it voluntarily delivers or unjustifiably refuses to
deliver.
41-07-24. (7-308) Enforcement of carrier's lien. 1. A carrier's lien on goods may be enforced by public or private sale of the goods, in bulk
or in packages, at any time or place and on any terms that are commercially
reasonable, after notifying all persons known to claim an interest in the goods. The
notification must include a statement of the amount due, the nature of the proposed
sale, and the time and place of any public sale. The fact that a better price could have
been obtained by a sale at a different time or in a method different from that selected
by the carrier is not of itself sufficient to establish that the sale was not made in a
commercially reasonable manner. The carrier sells goods in a commercially
reasonable manner if the carrier sells the goods in the usual manner in any recognized
market therefor, sells at the price current in that market at the time of the sale, or
otherwise sells in conformity with commercially reasonable practices among dealers in
the type of goods sold. A sale of more goods than apparently necessary to be offered
to ensure satisfaction of the obligation is not commercially reasonable, except in cases
covered by the preceding sentence. 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 in
complying with this section. In that event, the goods may not be sold but must be
retained by the carrier, subject to the terms of the bill of lading and this chapter. 3. A carrier may buy at any public sale pursuant to this section. 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 which the lien was valid, despite the carrier's
noncompliance with this section. 5. A carrier may satisfy its lien from the proceeds of any sale pursuant to this section but
shall hold the balance, if any, for delivery on demand to any person to which the carrier
would have been bound to deliver the goods. 6. The rights provided by this section are in addition to all other rights allowed by law to a
creditor against a debtor. 7. A carrier's lien may be enforced pursuant to either subsection 1 or the procedure set
forth under subsection 2 of section 41-07-16. 8. A 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.
41-07-25. (7-309) Duty of care - Contractual limitation of carrier's liability. 1. A carrier that issues a bill of lading, whether negotiable or non-negotiable, shall
exercise the degree of care in relation to the goods which a reasonably careful person
would exercise under similar circumstances. This subsection does not affect any
statute, regulation, or rule of law that imposes liability upon a common carrier for
damages not caused by its negligence. 2. Damages may be limited by a term in the bill of lading or in a transportation agreement
that the carrier's liability may not exceed a value stated in the bill or transportation
agreement if the carrier's rates are dependent upon value and the consignor is
afforded an opportunity to declare a higher value and the consignor is advised of the
opportunity. However, such a limitation is not effective with respect to the carrier's
liability for conversion to its own use. 3. Reasonable provisions as to the time and manner of presenting claims and
commencing actions based on the shipment may be included in a bill of lading or a
transportation agreement.
41-07-26. (7-401) 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 even if:
1. The document does not comply with the requirements of this chapter or of any other
statute, rule, or regulation regarding its issuance, form, or content;
2. The issuer violated laws regulating the conduct of its business;
3. The goods covered by the document were owned by the bailee when the document
was issued; or
4. The person issuing the document is not a warehouse but the document purports to be
a warehouse receipt.