The Garage Keepers Act

The Garage Keepers Act, C.C.S.M. c. G10 bilingual version (HTML) Table of Contents Section 1 Definitions 2 Garage keeper's lien 3 Right of detention and priority 4 Responsibility of garage keeper 5 Surrender of possession of vehicle; registration of lien 6 Expiry of registered financing statement 7 Seizure under lien; interim order 8 Intervening claims 9 Power of sale 10 When vehicle may be sold 11 Procedure for sale by auction 12 Notice to debtor 13 Payment into court Schedule HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Manitoba, enacts as follows: Definitions 1 In this Act, "farm vehicle" means a farm machine or other machine or equipment (a) the selling price of which is $50. or more, and (b) that is used, or intended for use, in any type of farming operations, except such a machine or equipment owned by a corporation, but does not include a motor vehicle other than (c) a farm truck as defined in The Highway Traffic Act , or (d) a farm tractor; (« véhicule agricole ») "garage" means a building or part of a building within or in connection with which any service is rendered upon a motor vehicle in the ordinary course of business; (« garage ») "garage keeper" means a person, firm, or corporation, who or which renders service upon a motor vehicle in a garage for or at a charge, price, or consideration, in the ordinary course of business and as the principal employment or one of the principal employments of that person, firm, or corporation; (« garagiste ») "motor vehicle" includes automobile, motor bicycle, tractor, and any other vehicle propelled or driven otherwise than by muscular power, and any internal combustion engine; but does not include a car of an electric or steam railway, or any other vehicle running only upon rails, or a trolley bus; (« véhicule automobile ») "service" means (a) the making of bona fide repairs to a motor vehicle or farm vehicle, or any part, accessory or equipment pertaining thereto, by or under the supervision of an automobile repair mechanic who holds a valid and subsisting certificate of qualification as such issued pursuant to The Apprenticeship and Certification Act , or by the supplying of parts or accessories therefor, or (b) the painting, storing, or caring for a motor vehicle or farm vehicle, or any part, accessory or equipment pertaining thereto, by a garage keeper. (« service ») S.M. 2009, c. 33, s. 51 . Garage keeper's lien 2 Subject to subsection 5(6), every garage keeper has a lien upon every motor vehicle or farm vehicle for service rendered upon it by the garage keeper to an amount not exceeding the charge, price, or consideration therefor. Right of detention and priority 3 Where a garage keeper has in their custody or possession a motor vehicle or farm vehicle, or any part thereof, or accessory or equipment pertaining thereto that belongs to a person who is indebted to them for any service, and, subject to subsection 5(1), the garage keeper has had such custody or possession since the time the service was rendered, the garage keeper may detain it in their custody or possession; and, subject to section 8, the right of detention provided by this section has priority over, and is not subject to, any lien, security interest, as defined in The Personal Property Security Act , bill of sale, or other charge or encumbrance of whatever nature or kind, upon or in respect of the motor vehicle, farm vehicle, or part, accessory, or equipment, pertaining thereto, existing at the time of the detention except a lien under this Act with respect to which a financing statement has been registered as provided herein. S.M. 1993, c. 14, s. 81 . Responsibility of garage keeper 4 Every garage keeper shall keep in the garage keeper's possession, and is responsible for, any motor vehicle and effects detained by the garage keeper for the full period of the detention, unless they are sooner released. Surrender of possession of vehicle, etc. 5(1) Where a garage keeper has a lien on a motor vehicle or a farm vehicle or any part, accessory or equipment pertaining thereto, the garage keeper may surrender possession of the motor vehicle or farm vehicle, or the part, accessory or equipment pertaining thereto, to the owner without losing the garage keeper's lien if (a) before surrendering possession to the owner, the garage keeper obtains from the owner an acknowledgment of the indebtedness with respect to which the lien arose, by requiring the owner to sign an invoice or other statement of account for the service rendered; and (b) either before surrendering possession to the owner or within 15 days thereafter, the garage keeper registers in the Personal Property Registry established under The Personal Property Security Act a financing statement in accordance with the regulations made under that Act. Position of garage keeper and owner 5(2) For the purposes of completing a financing statement for registration under subsection (1) in accordance with the regulations under The Personal Property Security Act , the garage keeper having the lien shall be deemed to be the secured party under that Act and the owner shall be deemed to be the debtor under that Act. Financing statement 5(3) A financing statement shall not be accepted for registration under subsection (1) unless it is completed to indicate (a) the nature of the service for the debt in respect of which the lien arose was incurred and the date on which that service was last rendered; (b) that the acknowledgment mentioned in clause (1)⁠(a) has been obtained by the garage keeper from the owner; and (c) that possession of the motor vehicle or farm vehicle, or the part, accessory or equipment pertaining thereto, is in the custody or possession of the garage keeper or has been surrendered, and if surrendered, the date of the surrender. Fee for registration 5(4) For registering a financing statement under subsection (1), the registrar of personal property shall charge and collect the appropriate fee prescribed under The Personal Property Security Act . Insertion of particulars in registry 5(5) Upon receiving a financing statement for registration under subsection (1), the registrar of personal property shall cause particulars of the registration to be entered in the Personal Property Registry in the same manner as particulars of registrations under The Personal Property Security Act are entered. Cost of registration secured by lien 5(6) The costs of registration of a financing statement may be added to the amount owing to the garage keeper and secured by the lien. Late registrations 5(7) Where a garage keeper fails to register a financing statement within the time limit under subsection (1), the garage keeper may apply to a judge of the Court of King's Bench and the judge, if satisfied that the failure was accidental or due to inadvertence or impossibility or other sufficient cause, may extend the time for registration on such terms and conditions as the judge deems just. Order to be filed 5(8) Upon a financing statement in respect of which an order has been made under subsection (7) being presented for registration, the order or a copy thereof shall be annexed to the financing statement. S.M. 1997, c. 24, s. 32 (as amended by S.M. 2000, c. 6, s. 19 ). Expiry of registered financing statement 6 Where a garage keeper has in respect of a lien registered a financing statement under section 5, the lien continues for a period of eight months from the day upon which the financing statement was registered, unless in the meantime the motor vehicle or farm vehicle, or part, accessory or equipment pertaining thereto, is sold by the garage keeper under this Act, or the indebtedness with respect to which the lien arose is paid; but the lien ceases to exist upon the expiration of that period unless prior to the expiration of the period, the motor vehicle or farm vehicle, or part, accessory or equipment pertaining thereto, has been seized under subsection 7(1), or the garage keeper brings a motion for an interim order for the recovery of personal property referred to in subsection 7(2). S.M. 2010, c. 33, s. 24 . Seizure under lien 7(1) Where a garage keeper has in respect of a lien registered a financing statement under section 5, the garage keeper may, while the lien continues, seize the motor vehicle or farm vehicle, or part, accessory or equipment pertaining thereto, upon which the garage keeper has the lien, and may detain the motor vehicle or farm vehicle, or part, accessory or equipment in their custody or possession and the lien shall continue while the motor vehicle or farm vehicle, or part, accessory or equipment, is detained in their custody or possession. Court proceedings 7(2) For the purpose of recovering possession or custody of a motor vehicle or farm vehicle, or part, accessory or equipment pertaining thereto, under subsection (1), a garage keeper who has in respect of a lien registered a financing statement under section 5 may, while the lien continues, commence an action and bring a motion under section 59 of The Court of King's Bench Act for an interim order for the recovery of personal property. S.M. 2010, c. 33, s. 24 . Intervening claims 8 Where a garage keeper has, in respect of a lien, registered a financing statement under section 5, the lien is subject to any interest in, or charge, lien or encumbrance upon the motor vehicle or farm vehicle, or the part, accessory or equipment pertaining thereto, that arose or was created in good faith without express notice of the first mentioned lien after possession was surrendered to the owner and before the financing statement was registered and to any lien in respect of which a financing statement or claim of lien was registered under this Act prior to the date the service, with respect to which the first mentioned lien arose, was rendered. Power of sale 9 Where a motor vehicle or farm vehicle, or part, accessory or equipment pertaining thereto, has been seized under section 7, or where a motor vehicle or farm vehicle, or part, accessory or equipment pertaining thereto has been detained under section 3, if, after the expiration of the period mentioned in section 10, indebtedness with respect to which the lien arose has not been paid, the garage keeper may sell the motor vehicle or farm vehicle, or part, accessory or equipment at public auction. When vehicle may be sold 10 The sale as aforesaid may be held at any time after the expiration of 60 days after the day on which the notice is given to the owner under section 12. Procedure for sale by auction 11(1) Before any such sale is held, the garage keeper shall insert in The Manitoba Gazette , and post and keep posted during the period of at least two weeks on the outside of a front door of their garage, a notice of the intended sale, stating the name, so far as known, of the owner of any motor vehicle or farm vehicle, or part, accessory, or equipment pertaining thereto to be sold, a general description of the motor vehicle or farm vehicle, or part, accessory, or equipment pertaining thereto to be sold, the time and place of sale, and the name of the person who is to act as auctioneer. Notice to other security holders 11(2) Where a garage keeper intends to sell a motor vehicle under section 9, the garage keeper shall, at least two weeks before the date of the intended sale, give notice of the intended sale in writing to any person who has registered in The Personal Property Registry established under The Personal Property Security Act a financing statement that relates to the motor vehicle or an accession thereto which is indexed in the registry under the serial number of the motor vehicle. Application of proceeds 11(3) After the sale the garage keeper shall apply the proceeds of the sale in payment of the amount due to the garage keeper as aforesaid, the cost of accommodation during the period of detention at the rates agreed upon for accommodation, the cost of seizure, where the article to be sold has been seized under section 7, the costs of advertising, the fee of the auctioneer, and all other reasonable costs of the sale. Disposition of surplus, if any 11(4) The garage keeper shall pay over the surplus, if any, to the person entitled thereto on application being made by the person therefor; and, if application therefor is not forthwith made, the garage keeper shall immediately pay the surplus into the Court of King's Bench to be kept there for the person entitled for one year, after which time, if that person does not appear or claim the amount so kept, it shall be paid over to the Minister of Finance and form a part of the Consolidated Fund. Effect of sale on other security 11(5) Where a garage keeper sells a motor vehicle or farm vehicle, or a part, accessory or equipment pertaining thereto, under this section, the sale discharges the lien of the garage keeper and, if the sale is made to a bona fide purchaser for value, discharges also any security interest in the motor vehicle or farm vehicle, or part, accessory or equipment pertaining thereto, in respect of which a financing statement has been registered under The Personal Property Security Act other than a financing statement in respect of an interest, charge, lien or encumbrance to which the garage keeper's lien is subject under section 8, and terminates the interest of the owner in the motor vehicle or farm vehicle or part, accessory or equipment pertaining thereto. S.M. 2018, c. 28, s. 11 . Notice to debtor 12(1) Unless, at the time of, or within a reasonable time after (a) the detention of the motor vehicle, farm vehicle, accessory or equipment under section 3; or (b) the seizure of the motor vehicle, farm vehicle, accessory or equipment under section 7; the garage keeper gives the owner of the vehicle a notice in Form 3 of the Schedule, or a notice to like effect, the garage keeper is not entitled to sell the motor vehicle, farm vehicle, accessory or equipment, as the case may be, in accordance with the provisions of this Act. Notice by registered mail 12(2) Where, at the time of receiving the motor vehicle, farm vehicle, accessory or equipment for service or at any time prior to the completion of the service, the garage keeper has given written notice to the owner that the garage keeper intends to rely upon the rights of a lienholder under this Act in collecting the account for the service, the notice required under subsection (1) may be given by sending it to the owner by registered mail to the latest address of the owner known to the garage keeper and in that case the notice shall be conclusively deemed to have been given to the owner on the third day after the day on which it is posted. Obtaining owner's identity 12(3) If the motor vehicle, farm vehicle, accessory or equipment is registered or was previously registered under The Drivers and Vehicles Act , the registrar may disclose the name and address of the owner or last known owner if the garage keeper (a) makes a request to the registrar in the form required by the registrar; and (b) provides the registrar with a statutory declaration stating that the information is necessary to provide the notice required under this section. Definitions 12(4) The following definitions apply in subsection (3). "owner" includes the registered owner, if different from the legal owner. (« propriétaire ») "registrar" means the registrar of Motor Vehicles appointed under section 3 of The Drivers and Vehicles Act . (« registraire ») S.M. 2021, c. 48, s. 17 . Definitions 13(1) In this section, "court" means the Court of King's Bench; (« tribunal ») "judge" includes a court officer as defined in The Court of King's Bench Small Claims Practices Act ; (« juge ») "owner" means the owner of a vehicle; (« propriétaire ») "vehicle" means a motor vehicle or farm vehicle or any part, accessory or equipment pertaining thereto. (« véhicule ») Payment into court 13(2) Notwithstanding any other provision of this Act, where a garage keeper has a lien on a vehicle and (a) has detained the vehicle under section 3; or (b) has seized the vehicle under section 7; or (c) has the right to seize the vehicle under section 7; and the owner disputes the indebtedness with respect to which the lien arose, notwithstanding that the owner has signed an acknowledgment of the indebtedness as required under subsection 5(1), the owner may pay the amount of the alleged indebtedness, together with 10% thereof or $50., whichever is the lesser, into court and, upon the garage keeper being served with the notice of the payment, the lien ceases to exist. Form of notice of payment 13(3) The notice of payment may be in Form 2 of the Schedule, and shall state (a) the name and address of the garage keeper claiming the lien; (b) the name and address of the owner of the detained vehicle; (c) a description of the detained vehicle, sufficient for its identification; (d) the amount paid into court; (e) that the owner disputes the amount claimed and the grounds of the dispute; and (f) that the garage keeper is ordered to deliver the vehicle to the owner; and shall have annexed to it a statement of the garage keeper's charges showing the amount claimed and how it is calculated or, where the garage keeper has not delivered a statement of the garage keeper's charges to the owner, shall have annexed to the notice an affidavit of the owner setting out the amount claimed by the garage keeper. Statement of charges 13(4) The statement of charges required under subsection (3) shall be furnished by the garage keeper upon completion of the service to the vehicle. Notice to be signed by court officer 13(5) The proper officer of the court, if satisfied that the notice of payment complies with subsection (3) and that the owner has paid the required amount into court together with such court fee as may be prescribed, shall sign the notice. Service of notice of payment 13(6) The notice of payment shall be served personally by leaving a true copy thereof and of the annexed statement of charges with the garage keeper named in the notice, or the garage keeper's service manager or credit manager or other person in charge at the garage keeper's place of business. Action within 30 days 13(7) A garage keeper served with a notice of payment may, within 30 days from the date of service of the notice, commence an action in the court, regardless of the amount, to realize their claim, and where the action is so commenced the moneys in court shall be paid out in accordance with the order of a judge. Failure to commence action 13(8) Where the action is not commenced within the time limited by subsection (7), the moneys paid into court shall be paid out to the owner when the owner applies therefor. Garage keeper to give up possession 13(9) Upon the notice of payment being served in accordance with subsection (6), the garage keeper shall forthwith give up possession of the vehicle to the owner, and if the garage keeper, upon being requested by the owner to give up possession of the vehicle, fails or refuses to give up possession of the vehicle to the owner, the garage keeper is guilty of an offence and liable, on summary conviction, to a fine of not more than $100. for each day that the garage keeper has refused or failed to give up possession of the vehicle. S.M. 1989-90, c. 91, s. 6 . SCHEDULE FORM 1 [Repealed] S.M. 1997, c. 24, s. 32 . FORM 2 NOTICE OF PAYMENT INTO COURT UNDER THE GARAGE KEEPERS ACT IN THE COURT OF KING'S BENCH TO: (Name and Address of Garage Keeper) TAKE NOTICE THAT (Name and Address of Owner) hereafter referred to as "the owner" has paid into this court the sum of $______ being the amount claimed by you (together with costs) in accordance with the annexed statement of the garage keepers charges showing the amount claimed and how it is calculated (or as set out in the annexed affidavit of the owner) in respect of service performed upon the vehicle described as follows: (Insert description of motor vehicle, etc.) AND TAKE NOTICE that the owner disputes the amount claimed on the following grounds: (Here state grounds of dispute) AND TAKE NOTICE that you are ordered on receipt of this notice to deliver up the vehicle to the owner. Dated at ______, in Manitoba, this ____ day of ______, 20__. Registrar of the Court Note: Under subsections 13(6) and (7) of The Garage Keepers Act , a garage keeper may commence an action in the court into which the moneys are paid, regardless of the amount, to realize their claim out of the moneys in court, within 30 days of the date of service hereof, failing which the moneys shall be paid to the owner when he applies therefor. FORM 3 NOTICE TO OWNER TO: (name and address of owner) being the owner of (here describe the motor vehicle, farm vehicle, accessory or equipment in respect of which the lien is claimed). TAKE NOTICE THAT (name and address of garage keeper) intends to rely on the rights of lienholder under The Garage Keepers Act , including the right to sell the motor vehicle (farm vehicle, accessory or equipment) described above if the account of $______ for service to (storage of ______) the motor vehicle (farm vehicle, accessory or equipment) is not paid within 60 days after the giving of this notice. You have the right under section 13 of The Garage Keepers Act to pay the amount of the account, plus 10% thereof or $50. whichever is the lesser, into court and upon compliance with the provisions of that section respecting notice to the garage keeper, the lien of the garage keeper will cease to exist and custody of the motor vehicle (farm vehicle, accessory or equipment) will be returned to you. DATED this ____ day of ______, 20__. (signature of garage keeper)