Repairer's Liens
How and When to File a Repairer's Lien
Scenario:
You have performed the repair work on the vehicle as authorized by the registered owner of the vehicle, or some authorized person on behalf of the registered owner, preferably via a signature or otherwise properly documented on the work order.
Procedure Where the Repairer Keeps Possession (i.e.: Customer does not pick up the vehicle):
1. Contact the customer to ask them to pay the bill. If the customer refuses, move to next step.
2. Do a search of the vehicle in the Personal Property Registry (the“PPR”) through B.C. OnLine or a registry agent. If the search shows a lien or charge in favour of some financial institution or someone else with an interest in the vehicle, contact them to see if they will pay the bill. If not, move to the next step.
3. Wait 90 days from the date the repair work was completed and the bill prepared.
4. After the 90 day period is up, put a notice in the newspaper published in the city, town or county in which the work was done at least two weeks before the date for sale of vehicle stating:
(a) name of the person indebted (usually the registered owner(s)/lessee(s));
(b) amount of the indebtedness (i.e.: the bill);
(c) description of the vehicle being sold; and
(d) time and place of the sale.
5. If the bill is not paid, conduct the sale at the time and place specified in the advertisement.
6. After the sale has been completed, pay the proceeds:
(a) first, to the repairer/dealer for the amount of the repair bill and costs of advertising and sale;
(b) second, if there is any money left, it goes to any lender or other lien claimant who has registered a lien against the vehicle in the PPR up to the amount it is owed; and
(c) third, if there is any money left, it goes to the registered owner(s).
7. After the sale, send a letter to the registered owner(s)/lessee(s) and to any other lenders or lien claimants registered against the vehicle at their last known addresses telling them that:
(a) the sale took place;
(b) the amount the vehicle sold for; and
(c) who the proceeds of sale were disbursed to.
Procedure Where Repairer Releases Vehicle to Customer before the Bill is Paid:
1. Have the customer acknowledge the indebtedness on the bill by signing the bill or other statement of account before the vehicle is released.
2. As soon as possible after the vehicle is released to the customer, and certainly within 21 days of the date the vehicle is released to the customer, register a Repairers Lien Financing Statement in the PPR by filing by computer through B.C. OnLine or through a registry agent. Note that the debtor required to be shown on this financing statement is the registered owner of the vehicle. If there is also a lessee shown on the registration, include the lessee as a separate debtor on the Repairers Lien Financing Statement. The serial number of the vehicle must be used.
3. Contact the customer to pay the bill. If the customer refuses, move to the next step.
4. Conduct a search of the vehicle in the PPR through B.C. OnLine or a registry agent. If the search shows a charge in favour of some financing institution or someone else with an interest in the vehicle, contact them to see if they will pay the bill. If not, move to the next step.
5. Before the expiry of 180 days from the date of filing of the Repairers Lien Financing Statement in the PPR (and usually after 60 to 90 days from release of the vehicle to the
customer), have a bailiff licenced under the Business Practices and Consumer Protection Act seize the vehicle and return it to the repairer/dealer.
6. Wait 90 days from the date the repair work was completed and the bill prepared.
7. After the 90 day period is up, put a notice in the newspaper published in the city, town, or county in which the work was done at least two weeks before the date for sale of the vehicle stating:
(a) name of the person indebted (usually the registered owner(s)/lessee(s));
(b) amount of the indebtedness (i.e.: the bill);
(c) description of the vehicle being sold; and
(d) time and place of the sale.
8. If the bill is not paid, conduct the sale at the time and place specified in the advertisement.
9. After the sale has been completed, pay the proceeds:
(a) first, to the repairer/dealer for the amount of the repair bill, the costs of advertising and sale and the cost of seizure;
(b) second, if there is any money left, it goes to any lender or other lien claimant who has registered a lien against the vehicle in the PPR up to the amount it is owed; and
(c) third, if there is any money left, it goes to the registered owner(s).
10. After the sale, send a letter to the registered owner(s)/lessee(s) and to any other lenders or lien claimants registered against the vehicle at their last known addresses telling them that:
(a) the sale took place;
(b) the amount the vehicle sold for; and
(c) who the proceeds of sale were disbursed to.
Some Items of Interest:
1. Even though a lender or another lien claimant may be registered in front of the repairer in the PPR, usually the repairer has priority over such lender or lien claimant for its money. Generally the only people who can have priority over the repairers lien are those who buy the vehicle or claim a lien or file a financing statement between the
repairer releasing the vehicle to the customer and the date the repairer’s financing statement is filed in the PPR.
2. If the repairer cannot seize the vehicle within the 180 days after repair, then it is possible to go to court to apply to have that time period extended for a further period up to another 180 days.
3. There are some strict rules about how customers must be described on Repairers Lien Financing Statements. Generally describe them as they are shown on the certificate of registration.
Use the full correct name of the person or the company, wherever possible, even if a shorter form is used on the certificate of registration.
Note: This is a general overview only. Circumstances may arise which require specific advice on specific matters and one of our lawyers should be consulted