Oregon Statutes - Chapter 586 - Warehouses; Grain and Commodity Inspection - Section 586.395 - Warehousemanís liability for injury to grain; disposal of grain which is a hazard.

(1) A warehouseman shall be liable for any loss or injury to the grain in the public warehouse of the warehouseman caused by the failure of the warehouseman to exercise such care in regard to it as a reasonably careful person would exercise in regard to similar grain of the personís own.

(2)(a) If a warehouseman discovers that as a result of a quality or condition of certain grain placed in the public warehouse of the warehouseman, of which the warehouseman had no notice at the time of deposit, such grain is a hazard to other grain or to persons or to the public warehouse, and if it is not immediately removed by the owners at the request of the warehouseman, the warehouseman may sell the grain at public or private sale without advertisement but with reasonable notification to all persons known to claim an interest in the grain. If the warehouseman after a reasonable effort is unable to sell the grain, the warehouseman may dispose of it in any other lawful manner and shall incur no liability by reason of such disposition.

(b) At any time prior to sale or disposition as authorized in this section, the warehouseman shall deliver the grain to any person entitled to it, upon proper demand and payment of charges.

(c) From the proceeds of sale or other disposition of the grain the warehouseman may satisfy the charges of the warehouseman for which otherwise the warehouseman would have a lien, and shall hold the balance thereof for delivery on the demand of any person to whom the warehouseman would have been required to deliver the grain. [1961 c.445 §14]

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Last modified: August 7, 2008