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84-7-402. Duplicate document of title; overissue. A duplicate or any other document of title purporting to cover goods already represented by an outstanding document of the same issuer does not confer any right in the goods, except as provided in the case of tangible bills of lading in a set of parts, overissue of documents for fungible goods, substitutes for lost, stolen, or destroyed documents, or substitute documents issued pursuant to K.S.A. 2023 Supp. 84-7-105, and amendments thereto. The issuer is liable for damages caused by its overissue or failure to identify a duplicate document by a conspicuous notation.

History: L. 2007, ch. 90, § 27; July 1, 2008.

KANSAS COMMENT, 1996

Under this section, with the exceptions noted below, only the original document of title confers rights in the goods, but the issuer is liable for damages caused by the duplicate document. Former Kansas statutory law covered only negotiable warehouse receipts, see former K.S.A. 82-106, although similar liability had been reached by case law when duplicate bills of lading were issued without marking either as a duplicate. See Wichita Savings Bank v. Atchison, T. & S.F. R. Co., 20 K. 519 (1878). As to when the notation under this section is "conspicuous," see 84-1-201(10).

The exception for bills in a set will apply only in overseas transactions. See 84-7-304. The exception for overissue for fungible goods will apply only to warehouse receipts and will enable the bailor to share on a pro rata basis. See 84-7-207. The exception for substitutes for lost, stolen or destroyed documents corresponds to 84-7-601, and will usually apply only after adequate security has been supplied. 84-7-402 does not cover disputes between holders of documents of title not "of the same issuer," such as the holder of a warehouse receipt and the holder of a delivery order covering the same goods. See 84-7-503(2).

K.S.A. 34-257a mandates the procedure to be followed in issuing duplicate negotiable warehouse receipts which have been lost or destroyed.

Revisor's Note:

Former section 84-7-402 repealed by L. 2007, ch. 90, § 78 and the number reassigned to the current text.


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