§ 336.2A-531 — Standing to Sue Third Parties for Injury to Goods
Plain-Language Summary
This section says that when a third party damages goods identified to a lease contract, the lessor can sue that third party, and the lessee can also sue if the lessee has a security interest, an insurable interest, or bears the risk of loss. If the party suing did not bear the risk of loss and there is no arrangement for splitting any recovery, that party acts as a fiduciary for the other party to the lease beyond its own interest. Either party, with the other's consent, may sue for the benefit of whomever the recovery concerns.
336.2A-531 STANDING TO SUE THIRD PARTIES FOR INJURY TO GOODS.
(1) If a third party so deals with goods that have been identified to a lease contract as to cause actionable injury to a party to the lease contract (a) the lessor has a right of action against the third party, and (b) the lessee also has a right of action against the third party if the lessee:
(i) has a security interest in the goods;
(ii) has an insurable interest in the goods; or
(iii) bears the risk of loss under the lease contract or has since the injury assumed that risk as against the lessor and the goods have been converted or destroyed.
(2) If at the time of the injury the party plaintiff did not bear the risk of loss as against the other party to the lease contract and there is no arrangement between them for disposition of the recovery, the party plaintiff’s suit or settlement, subject to the party plaintiff’s own interest, is as a fiduciary for the other party to the lease contract.
(3) Either party with the consent of the other may sue for the benefit of whom it may concern.
History:
1989 c 232 art 1 s 2A-531
History: History: 1989 c 232 art 1 s 2A-531