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: 1953 Comp., § 50A-7-603, enacted by Laws 1961, ch. 96, § 7-603; 2005, ch. 144, § 91.

OFFICIAL COMMENTS

UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.

Prior Uniform Statutory Provisions. — Former Section 7-603 [55-7-603 NMSA 1978].

Changes. — Changes for style only.

1. The section enables a bailee faced with conflicting claims to the goods to compel the claimants to litigate their claims with each other rather than with the bailee. The bailee is protected from legal liability when the bailee complies with court orders from the interpleader. See e.g. Northwestern National Sales, Inc. v. Commercial Cold Storage, Inc., 162 Ga. App. 741, 293 S.E.2d. 30 (1982).

2. This section allows the bailee to bring an interpleader action but does not provide an exclusive basis for allowing interpleader. If either state or federal procedural rules allow an interpleader in other situations, the bailee may commence an interpleader under those rules. Even in an interpleader to which this section applies, the state or federal process of interpleader applies to the bailee's action for interpleader. For example, state or federal interpleader statutes or rules may permit a bailee to protect its lien or to seek attorney's fees and costs in the interpleader action.

Point 1: Section 7-403 [55-7-403 NMSA 1978].

"Action". Section 1-201 [55-1-201 NMSA 1978].

"Bailee". Section 7-102 [55-7-102 NMSA 1978].

"Delivery". Section 1-201.

"Goods". Section 7-102.

"Person". Section 1-201.

"Reasonable time". Section 1-205 [55-1-205 NMSA 1978].

Repeals and reenactments. — Laws 2005, ch. 144, § 91, effective January 1, 2006, repealed former 55-7-603 NMSA 1978 as enacted by Laws 1961, ch. 96, § 7-603, and enacted a new section. Pursuant to 12-2A-14 NMSA 1978, the 2005 revision is considered an amendment rather than a new enactment.

Am. Jur. 2d, A.L.R. and C.J.S. references. — 13 Am. Jur. 2d Carriers § 477; 78 Am. Jur. 2d Warehouses §§ 221, 264.

Jurisdiction of state courts of actions in relation to interstate shipments, 64 A.L.R. 333.

Interpleader where one claimant asserts adverse and paramount title, 97 A.L.R. 996.

Warehouseman's right to interplead rival claimants, 100 A.L.R. 425.

Allowance of attorneys' fees to party interpleading claimants to funds or property, 48 A.L.R.2d 190.

48 C.J.S. Interpleader § 12.