N.Y. Uniform Commercial Code Law § 7-302: Through Bills of Lading and Similar Documents of Title

Section 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.