Code of Alabama

Ala. Code § 7-2-722 (2026)

Who Can Sue Third Parties for Injury to Goods.

✓ official Alabama Legislature (ALISON) text, current July 2026

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Where a third party so deals with goods which have been identified to a contract for sale as to cause actionable injury to a party to that contract:

(a) A right of action against the third party is in either party to the contract for sale who has title to or a security interest or a special property or an insurable interest in the goods; and if the goods have been destroyed or converted a right of action is also in the party who either bore the risk of loss under the contract for sale or has since the injury assumed that risk as against the other;

(b) If at the time of the injury the party plaintiff did not bear the risk of loss as against the other party to the contract for sale and there is no arrangement between them for disposition of the recovery, his suit or settlement is, subject to his own interest, as a fiduciary for the other party to the contract;

(Acts 1965, No. 549, p. 811.)

Notes of Decisions

Cited in 1 case, 2002–2002 · leading case: Youdath v. Great Atl. & Pac. Tea Co., 844 So. 2d 1242 (Ala. Civ. App. 2002).

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Youdath v. Great Atl. & Pac. Tea Co., 844 So. 2d 1242 (Ala. Civ. App. 2002). “Youdath first argues, relying on § 7-2-722, Ala.Code 1975, that when goods are identified in a sales agreement, a party to that agreement may recover against third parties who caused the goods to be destroyed or converted.”

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