RSNL1990 CHAPTER W-2 - WAREHOUSER'S LIEN ACT

RSNL1990 CHAPTER W-2 WAREHOUSER'S LIEN ACT Amended: 1998 cP-7.1 s84 CHAPTER W-2 AN ACT RESPECTING WAREHOUSER'S LIENS Analysis 1. Short title 2. Definitions 3. Warehouser's lien 4. Requirement as to notice of lien 5. Enforcement of lien 6. Compliance with Act 7. Disposition of proceeds of sale 8. Duty of warehouser 9. Manner of giving notice Short title 1. This Act may be cited as the Warehouser's Lien Act. RSN1970 c391 s1 Back to Top Definitions 2. In this Act (a) "goods" includes personal property that may be deposited with a warehouser as bailee; (b) "lien" means a lien which is created by this Act; (c) "warehouser" means a person who receives goods for storing as a bailee for hire; and (d) "warehouser's charges" means the charges in respect of which a warehouser has a lien. RSN1970 c391 s2 Back to Top Warehouser's lien 3. (1) A warehouser has a lien on goods deposited with him or her for storing whether deposited by the owner of the goods or by his or her authority or by a person entrusted with the possession of the goods by the owner or by his or her authority. (2) The lien is for the amount of the warehouser's charges, which include (a) lawful charges for storing and preservation of the goods; (b) lawful claims for money advanced, interest, insurance, transportation, labour, weighing and other expenses in relation to the goods; and (c) reasonable charges for (i) a notice required to be given under this Act, (ii) notice and advertisement of sale, and (iii) sale of the goods where default is made in satisfying the warehouser's lien. RSN1970 c391 s3 Back to Top Requirement as to notice of lien 4. (1) Where the goods on which a lien exists were deposited not by the owner or by his or her authority but by a person entrusted by the owner with the possession of the goods, the warehouser shall within 2 months after the date of the deposit give notice of the lien (a) to the owner of the goods; and (b) a person who has an interest in the goods that secures payment or performance of an obligation and who has registered, before the date of the deposit, a financing statement relating to that interest under the Personal Property Security Act. (2) The notice given under subsection (1) shall be in writing and contain (a) a brief description of the goods; (b) a statement showing (i) the location of the warehouse where the goods are stored, (ii) the date of their deposit with the warehouser, and (iii) the name of the person by whom they were deposited; and (c) a statement that a lien is claimed by the warehouser under this Act in respect of goods. (3) Where the warehouser fails to give the notice required by this section, his or her lien, as against the person to whom the warehouser has failed to give notice, is void as from the expiration of the period of 2 months from the date of the deposit of the goods. RSN1970 c391 s4; 1998 cP-7.1 s84 Back to Top Enforcement of lien 5. (1) In addition to other remedies provided by law for the enforcement of liens or for the recovery of warehouser's charges, a warehouser may, in the manner provided in this section, sell by public auction goods upon which he or she has a lien for warehouser's charges which have become due. (2) The warehouser shall give written notice of his or her intention to sell (a) to the person liable as debtor for the warehouser's charges for which the lien exists; (b) to the owner of the goods and to a person who has an interest in the goods that secures payment or performance of an obligation and who has, before the date of the deposit, registered a financing statement relating to that interest under the Personal Property Security Act ; and (c) [repealed by 1998 cP-7.1 s84] (d) to another person known by the warehouser to have or claim an interest in the goods. (3) The notice given under subsection (2) shall contain (a) a brief description of the goods; (b) a statement showing (i) the location of the warehouse where the goods are stored, (ii) the date of their deposit with the warehouser, and (iii) the name of the person by whom they were deposited; (c) an itemized statement of the warehouser's charges showing the sum due at the time of the notice; (d) a demand that the amount of the charges as stated in the notice and the further charges that may accrue shall be paid on or before a day mentioned, not less than 21 days from (i) the delivery of the notice where it is personally delivered, or (ii) the time when the notice should reach its destination according to the due course of mail where it is sent by mail; and (e) a statement that unless the charges are paid within the time mentioned the goods will be advertised for sale and sold by public auction at a time and place specified in the notice. (4) Where the charges itemized in the notice given under subsection (2) are not paid on or before the day mentioned in the notice, an advertisement of the sale (a) describing the goods to be sold; (b) stating the name of the person liable as debtor for the charges for which the lien exists; and (c) stating the time and place of the sale, shall be published at least once a week for 2 consecutive weeks in a newspaper published in the province and circulating in the locality where the sale is to be held and the sale shall be held not less than 14 days from the date of the 1st publication of the advertisement. RSN1970 c391 s5 Back to Top Compliance with Act 6. Where a notice of lien under section 4 or a notice of intention to sell under section 5 has been given but the section has not been strictly complied with, where the court or a judge before whom a question respecting the notice is tried or inquired into considers (a) that the section has been substantially complied with; or (b) that it would be inequitable that the lien or sale shall be void because of the non-compliance, an objection to the sufficiency of the notice shall not in that case be allowed to prevail so as to release or discharge the goods from the lien or invalidate the sale. RSN1970 c391 s6 Back to Top Disposition of proceeds of sale 7. (1) From the proceeds of the sale under this Act the warehouser shall satisfy his or her lien and shall pay over the surplus to the person entitled to it and the warehouser shall when paying over the surplus deliver to the person to whom he or she pays it a statement of account showing how the amount has been calculated. (2) Where (a) the surplus is not demanded by the person entitled to it within 10 days after the sale under this Act; or (b) there are different claimants or the rights to the surplus are uncertain, the warehouser shall upon the order of a judge pay the surplus into the Trial Division. (3) An order made under subsection (2) may be made without notice to another party upon the terms and conditions as to costs and otherwise that the judge may direct and may provide to what fund or name the amount shall be credited. (4) The warehouser at the time of paying the amount into court under subsection (2) shall file in the court a copy of the statement of account showing how the amount has been calculated. RSN1970 c391 s7; 1974 No57 s38(264)(qq); 1986 c42 Schs A&B Back to Top Duty of warehouser 8. (1) Before goods are sold under this Act a person claiming an interest or right of possession in the goods may pay the warehouser the amount necessary to satisfy his or her lien, including the expenses incurred in serving notices and advertisement and preparing for the sale up to the time of the payment. (2) The warehouser shall deliver the goods referred to in subsection (1) to the person making the payment where he or she is the person entitled to the possession of the goods on payment of the warehouser's charges, but where that person is not so entitled to the possession of the goods the warehouser shall retain possession of the goods according to the terms of the contract of deposit. RSN1970 c391 s8 Back to Top Manner of giving notice 9. Where by this Act a written notice is required to be given the notice shall be given by delivering it to the person to whom it is to be given or by registered mail addressed to him or her at the person's last-known address. RSN1970 c391 s9 ©Earl G. Tucker, Queen's Printer