Professional Documents
Culture Documents
> A warehouseman is a person lawfully engaged in the business of storing goods for profit. > Only a warehouseman may issue warehouse receipts
WHAT SHOULD BE DONE TO PUT THE RECEIPT WITHIN THE PURVIEW OF WAREHOUSE RECEIPTS LAW?
> The warehouse receipt should be issued by the warehouseman
owner, either solely or jointly or in common with others, the fact of such ownership 9. A statement of the amount of advances made and of liabilities incurred for which the warehouseman claims as lien. If the precise amount for such advances made or of such liabilities incurred is, at the same time of the issue of the receipt, unknown to the warehouseman or to his agent who issues it, a statement of the fact that advances have been made or liabilities incurred and the purpose thereof is sufficient
RECEIPTS
b. An offer to surrender the receipt, if negotiable with such indorsements as would be necessary for the negotiation of the receipts c. A readiness and willingness to sign, when the goods are delivered, an
acknowledgement that they have been delivered, if such signature is requested by the warehouseman
WHAT SHOULD ACCOMPANY THE DEMAND FOR THE RETURN OF THE GOODS?
1. An offer to satisfy the warehousemans lien 2. An offer to surrender the receipt, if negotiable with such indorsements as would be necessary for the negotiation of the receipts 3. A readiness and willingness to sign, when the goods are delivered, an acknowledgement that they have been delivered, if such signature is
Had information that the delivery about to be made was to one not
WHAT IS CONVERSION?
> Unauthorized assumption and exercise of the right of ownership over goods belonging to another through the alteration of their condition or the exclusion of the owners right
NEGOTIABLE RECEIPTS MUST BE CANCELLED OR MARKED WHEN GOODS DELIVERED OR WHEN PART OF IT IS DELIVERED. FAILURE TO DO SO WILL MAKE THE WAREHOUSEMAN LIABLE
> The warehouseman is liable to any one who purchases for value in good faith such receipt, for failure to deliver the goods to him, whether such purchaser acquired title to the receipt before or after the delivery of the goods by the warehouseman
1. Alteration immaterialwhether fraudulent or not, whether authorized or not, the warehouseman is liable on the altered receipt according to its original tenor 2. Alteration materialif the alteration is material, but authorized, the warehouseman is liable according to the terms of the receipt as altered 3. Material alteration innocently madethe warehouseman is liable on the altered receipt according to its original receipt 4. Material alteration fraudulently madewarehouseman is liable according to the original tenor of the receipt to a purchaser of the receipt for value without notice, and even to the alterer and subsequent purchasers with notice except that as regards to the last two, the
warehousemans liability is limited only to delivery as he is excused from any liability NOTA BENE: it is clear that even a fraudulent alteration cannot divest the title of the owner of stored goods and the warehouseman is, therefore, liable to return them to the owner. But a bona fide holder acquires no right to the goods under a negotiable receipt which has been lost or stolen or to which the endorsement of the depositor has been forged.
> The court may also in its discretion order the payment of the warehousemans reasonable costs and counsel fees > The order of the court shall not relieve the warehouseman from liability to a person to whom the negotiable receipt as been or shall be negotiated for value without notice of the proceedings or of the delivery of the goods
the deposit for storage or subsequent thereto o From the warehousemans lien
non-delivery of the goods, or as an original suit, whichever is appropriate, require all known claimants to interplead
> The warehouseman is required to exercise ordinary or reasonable care in the custody of the goods, that is, the care is reasonably careful owner would exercise over similar goods of his own. > The warehouseman isnt liable for any loss or injury to the goods, which couldnt have been avoided by the exercise of such care. Of course,
what constitutes ordinary or reasonable care depends upon the circumstances such as the character and value of the property and the character and location of the warehouse.
It would, indeed be strange if the warehouseman could escape his liability to the owner of the goods by the simple process of commingling them without authorization
of title has been duly negotiated. > While in possession of such warehouseman, the goods cannot be attached or levied upon under an execution unless o o o The document is first surrendered Its negotiation is enjoined The document is impounded by the court
> This shall not apply if the person depositing is not the owner of the goods or one who has no right to convey title to the goods binding upon the owner. > Neither shall it apply to actions for recovery or manual delivery of goods by the real owner nor to cases where the attachment is made before the issuance of the negotiable receipt of title
2. All
lawful
claims
for
money
advancedInterests, Insurance,
Transportation, Labor, Weighing, Cooperating and other charges and expenses in relation to the goods 3. All reasonable charges and expenses for notice and advertisements of sale 4. Sale of goods where default has been made in satisfying warehousemans lien
given by delivery in person or by registered mail addressed to the last known place of business or abode of the person to be notified. 2. The notice shall contain a. An itemized statement of the claim, showing the sum due at the time
of the notice and the dates when it became due b. A brief description of the goods c. A demand that such amount of the claim as stated shall be paid on or before
the day mentioned, not less than 10 days from the delivery of the notice if it is personally delivered, or
from the time when the notice shall reach its destination, according to due course of post, if the notice is sent by mail d. A statement that unless the claim is paid within the time specified, the goods will be advertised for sale and sold by auction at a specified time and place
1. Failure to stamp duplicate on copies of negotiable receipt 2. Failure to place non-negotiable or not negotiable on the not negotiable receipt 3. Misdelivery of the goods 4. Failure to effect cancellation of a negotiable receipt upon delivery of the goods 5. Issuing receipt for non-existing goods or misdescribed goods 6. Failure to take care of the goods 7. Failure to give notice in case of sale of goods to satisfy the lien or because the goods are perishable or hazardous
where a negotiable receipt has been indorsed in blank or bearer, any holder may indorse the same to himself or to any other
specified person, and in such case the receipt shall thereafter be negotiated only by the indorsement by such indorsee
enjoined 3. In case of negotiation, the holder acquires the direct obligation of the warehouseman to hold possession of the goods for him without notice to such warehouseman 4. The goods it covers arent subject to sellers lien or stoppage in transitu
debt from a person doesnt warrant thereby the genuineness of the receipt nor the quality or quantity of the goods therein described
HOW DO YOU ATTACH OR IMPOSE A LIEN OVER GOODS COVERED BY A WAREHOUSE RECEIPT?
If it is not negotiable, the court would issue a writ of attachment. If it is negotiable, the court should require the surrender of the receipt and restrict further negotiations.