by Jennifer Craddock, Partner
The Repair and Storage Liens Act (the “RSLA”)... I know what you are thinking: It is not the prettiest or the fanciest or the most exciting Act in Ontario... Or is it? You might be surprised to know that this girl (and I'm referring to the Act) packs a good (legal) punch and it’s one of the most useful Acts available when a client doesn’t receive payment for repair or storage services rendered to a customer, a tenant or another third party.
In general, repair and storage liens pursuant to the RSLA have priority – yes, priority! - over any other interest in the same article of personal property. Unlike other forms of lien - such as construction liens - liens pursuant to the RSLA do not have to be registered within a certain period of time. In fact, a possessory lien does not have to be registered at all.
A lien under the RSLA can be enforced by selling or retaining the article(s) in question depending on the wishes of the lien claimant. Although the provisions of the RSLA with regard to notice must be strictly adhered to, a sale or retention can be conducted by a lien claimant without starting a proceeding or obtaining a court order. In essence, the process may well prove to be less costly, more efficient and more effective than other remedies that might otherwise be available.
While the RSLA deals with both possessory and non-possessory liens and is useful in many situations, I think you all know the old adage...Possession is nine-tenths of the law.
So the moral of this story?
Hold onto possession of those items you just repaired or stored
until you have been paid in full and oh yeah...
don't judge this Act by her cover ;)