Short answer. Yes. Under Civil Code Article 1510, a document of title bearing the words 'not negotiable' or 'non-negotiable' may nevertheless be negotiated by the holder and is treated as a negotiable document of title. The marking does not strip it of negotiability — but it may affect the obligations of the carrier or warehouseman.
What the law says
such document may nevertheless be negotiated by the holder and is a negotiable document of title within the meaning of this Title
Civil Code, Article 1510 — 'Not Negotiable' Marking. Read the full provision →
The counterintuitive rule
It seems contradictory: a document stamped 'not negotiable' is still negotiable. But that is exactly what Article 1510 provides. If a document of title — such as a bill of lading or warehouse receipt — contains an undertaking by a carrier, warehouseman, or other bailee to deliver goods to bearer, to a specified person, or to the order of a specified person, and those words of negotiability appear alongside a 'not negotiable' stamp, the negotiable language controls for purposes of transfer. The marking does not erase the negotiable character built into the document's terms.
What the 'not negotiable' stamp actually limits
The statute is careful to add that nothing in it shall be construed as limiting or defining the effect upon the obligations of the carrier, warehouseman, or other bailee issuing the document or placing the 'not negotiable' marking on it. In other words, what changes is not the ability to transfer the document — that remains — but potentially what the issuing carrier or warehouseman is obligated to do. The marking may affect delivery obligations, the rights of a transferee against the issuer, or the degree of protection a subsequent holder receives. The issuer may have valid reasons for the marking; reading the specific terms of the document matters.
Practical implications for holders and transferees
If you hold a bill of lading marked 'not negotiable' and want to transfer it, the Civil Code does not bar you from doing so. The document remains negotiable in the legal sense. However, a transferee receiving it should investigate what the 'not negotiable' notation means for the carrier's or warehouseman's delivery obligations — the transferee may not enjoy the same protections as the original consignee. In commercial transactions, this distinction can matter significantly for who bears the risk when goods are disputed or delivery is problematic.
Why this rule exists
Documents of title exist to facilitate trade in goods — especially goods in transit or in storage. Allowing a carrier's or warehouseman's notation to completely strip a document of its negotiability would create uncertainty in commercial transactions and make it harder to finance and trade in goods that are not yet physically in hand. Article 1510 preserves the negotiable character of the document while leaving room for the issuer's specific contractual arrangements to be reflected in the notation.