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84-7-302. Through bills of lading and similar documents of title. (a) The issuer of a through bill of lading, or other document of title embodying an undertaking to be performed in part by a person acting as its agent or by a performing carrier, is liable to any person entitled to recover on the bill or other document for any breach by the other person or the performing carrier of its obligation under the bill or other document. However, to the extent that the bill or other document covers an undertaking to be performed overseas or in territory not contiguous to the continental United States or an undertaking including matters other than transportation, this liability for breach by the other person or the performing carrier may be varied by agreement of the parties.

(b) If goods covered by a through bill of lading or other document of title embodying an undertaking to be performed in part by a person other than the issuer are received by that person, the person is subject, with respect to its own performance while the goods are in its possession, to the obligation of the issuer. The person's obligation is discharged by delivery of the goods to another person pursuant to the bill or other document and does not include liability for breach by any other person or by the issuer.

(c) The issuer of a through bill of lading or other document of title described in subsection (a) is entitled to recover from the performing carrier, or other person in possession of the goods when the breach of the obligation under the bill or other document occurred:

(1) The amount it may be required to pay to any person entitled to recover on the bill or other document for the breach, as may be evidenced by any receipt, judgment, or transcript of judgment; and

(2) the amount of any expense reasonably incurred by the issuer in defending any action commenced by any person entitled to recover on the bill or other document for the breach.

History: L. 2007, ch. 90, § 18; July 1, 2008.

KANSAS COMMENT, 1996

This section deals with transactions involving shipment from a point of origin to a point of destination through more than one carrier. The term "through bill of lading" designates a bill of lading under which the original carrier obligates itself to make this sort of transportation. This section is patterned on the Carmack Amendment to the Interstate Commerce Act, 49 U.S.C. § 20(11) and (12).

Subsection (1) imposes liability on the original carrier to anyone entitled to recover on the bill of lading for any breach of the original carrier's or any connecting carrier's obligations. Under the common law test, a carrier was liable for the faults of a connecting carrier only if "contracted for." See Hoffman v. Union Pac. R. Co., 8 K.A. 379, 46 P. 331 (1899). Subsection (3) gives the issuer a right of indemnity from the connecting carriers for breach of the undertaking. See generally Braniff Airways, Inc. v. El Paso Coin Co., 517 S.W.2d 915 (Tex. Civ. App. 1974).

Subsection (2) restricts somewhat the rights available to an injured party under K.S.A. 66-304. That provision allows action against any of the carriers "to which said property may be delivered or over whose line or lines such property may pass." Under this subsection, the connecting carrier's responsibility is limited to the period while the goods are in its possession and does not include liability for a breach by others.

Revisor's Note:

Former section 84-7-302 repealed by L. 2007, ch. 90, § 78 and the number reassigned to the current text.


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