CO Code § 4-7-603 (2021)
2021 Colorado Code|Title 4 - Uniform Commercial Code|Article 7 - Documents of Title|Part 6 - Warehouse Receipts and Bills of Lading - Miscellaneous Provisions|§ 4-7-603. Conflicting Claims - Interpleader

 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. Source: L. 2006: Entire article R&RE, p. 489, § 2, effective September 1.    Editor's note:   This section is similar to former § 4-7-603 as it existed prior to 2006.   OFFICIAL COMMENT   Prior Uniform Statutory Provisions: Former Section 7-603.   Changes: Changes for style only.   Purposes:   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.   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.   Cross reference:   Point 1: Section 7-403.   Definitional Cross References:   “Action”. Section 1-201.   “Bailee”. Section 7-102.   “Delivery”. Section 1-201.   “Goods”. Section 7-102.   “Person”. Section 1-201.   “Reasonable time”. Section 1-205.   ANNOTATION   Annotator's note. Since § 4-7-603 is similar to repealed § 146-2-11, CRS 53, uniform warehouse receipts act, a relevant case construing that provision, CRS 53 has been included in the annotations to this section.   The intent of this section is to protect warehousemen from situations whereby they would be required to determine adverse claims at their peril. Petzoldt v. Lawrence Whse. Co., 157 F. Supp. 184 (D. Colo. 1957 ), aff'd sub nom. First Nat'l Bank v. Petzoldt, 262 F.2d 540 (10th Cir. 1958).   Where adverse claims are made on a warehouseman for goods and their possession, then, under this section the warehouseman is under no duty to deliver to either claimant until the lapse of reasonable time. Petzoldt v. Lawrence Whse. Co., 157 F. Supp. 184 (D. Colo. 1957 ), aff'd sub nom. First Nat'l Bank v. Petzoldt, 262 F.2d 540 (10th Cir. 1958).   Its sole duty, after demand is made, is either to compel interpleader or to make reasonable efforts to investigate the validity of the adverse claims. Petzoldt v. Lawrence Whse. Co., 157 F. Supp. 184 (D. Colo. 1957 ), aff'd sub nom. First Nat'l Bank v. Petzoldt, 262 F.2d 540 (10th Cir. 1958).   Where before the warehouseman has time to determine the claims or to interplead the claimants, the goods are replevied, and therefore, are no longer under the warehouseman's control, then for subsequent nondelivery, when it is no longer in its power to do so, the warehouseman cannot be under any liability. Petzoldt v. Lawrence Whse. Co., 157 F. Supp. 184 (D. Colo. 1957 ), aff'd sub nom. First Nat'l Bank v. Petzoldt, 262 F.2d 540 (10th Cir. 1958).   A warehouseman may excuse his failure to deliver property by showing that it has been taken under judicial process, and that he gave due notice to the depositor, or made reasonable efforts to do so. Petzoldt v. Lawrence Whse. Co., 157 F. Supp. 184 (D. Colo. 1957 ), aff'd sub nom. First Nat'l Bank v. Pelzoldt, 262 F.2d 540 (10th Cir. 1958).   A warehouseman is not the guarantor of title to goods for which he gave a receipt and is not liable for failure of the title thereunder. Petzoldt v. Lawrence Whse. Co., 157 F. Supp. 184 (D. Colo. 1957 ), aff'd sub nom. First Nat'l Bank v. Petzoldt, 262 F.2d 540 (10th Cir. 1958).