N.Y. Uniform Commercial Code Law § 2-a-531: Standing to Sue Third Parties for Injury to Goods

Section 2-A-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, his or

her suit or settlement, subject to his or her 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.