5-4-11 A bailee that fails to follow the procedure in Capezzaro v. Winfrey when faced with adverse claims can be liable for conversion under the Uniform Commercial Code. A bailee faced with adverse claims cannot avail itself of this exception where it failed to follow the procedure set forth in Capezzaro v.Winfrey, 153 N.J. Super. 267, 273 (App. Div. 1977). Specifically, in order to establish that the property was released in "good faith," the bailee must show that it either (1) investigated the competing claims and confirmed the validity of the claim underlying the release, or (2) filed an action for interpleader.
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