Section 45.12.526. Lessor's stoppage of delivery in transit or otherwise.

   (a) A lessor may stop delivery of goods in the possession of a carrier or other bailee if the lessor discovers the lessee to be insolvent and may stop delivery of carload, truckload, planeload, or larger shipments of express or freight if the lessee repudiates or fails to make a payment due before delivery, whether for rent, security, or otherwise under the lease contract, or for any other reason the lessor has a right to withhold or take possession of the goods.
   (b) In pursuing its remedies under (a) of this section, the lessor may stop delivery until
        (1) receipt of the goods by the lessee;
        (2) acknowledgment to the lessee by a bailee of the goods, except a carrier, that the bailee holds the goods for the lessee; or
        (3) an acknowledgment to the lessee under (1) or (2) of this subsection by a carrier by reshipment or as a warehouse.
   (c) To stop delivery, a lessor shall so notify as to enable the bailee by reasonable diligence to prevent delivery of the goods.
   (d) After notification, the bailee shall hold and deliver the goods according to the directions of the lessor, but the lessor is liable to the bailee for any ensuing charges or damages.
   (e) A carrier who has issued a nonnegotiable bill of lading is not obliged to obey a notification to stop received from a person other than the consignor.

Authorities

45.07.403;45.07.504;45.12.523

Notes

References

AS 45.07.403 Obligation of bailee to deliver; excuse.
AS 45.07.504 Rights acquired in absence of due negotiation; effect of diversion; stoppage of delivery.
AS 45.12.523 Lessor's remedies.

History

(Sec. 125 ch 35 SLA 1993; am Sec. 90 ch 44 SLA 2009)