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Repair and Storage Liens Act
R.S.O. 1990, Chapter R.25
Consolidation Period:From November 14, 2017 to the e-Laws currency date.
Last amendment:2017, c. 20, Sched. 11, s. 30-37.
Legislative History:1998, c. 18, Sched. E, s. 265-268;2000, c. 26, Sched. B, s. 18;2004, c. 16, Sched. D, Table;2004, c. 19, s. 20 (But see 2006, c. 19, Sched. G, s. 6);2006, c. 19, Sched. G, s. 10;2006, c. 21, Sched. F, s. 136 (1);2006, c. 34, s. 23;2012, c. 8, Sched. 52;2014, c. 9, Sched. 4; 2017, c. 20, Sched. 9, s. 14; 2017, c. 20, Sched. 11, s. 30-37.
CONTENTS
1. / Definitions and interpretation2. / Act binds Crown
PART I
POSSESSORY LIENS
3. / Repairer’s lien
4. / Storer’s lien
5. / Loss of lien
6. / Priority of lien
PART II
NON-POSSESSORY LIENS
7. / Non-possessory lien
8. / Transactions in ordinary course of business
9. / Registration of documents
10. / Claim for lien
11. / Change statements
12. / Discharge
13. / Correction of registrar’s records
14. / Seizure of article
PART III
REDEMPTION, SALE OR OTHER DISPOSITION
15. / Sale of article
16. / Proceeds of sale
17. / Retention of article
18. / Effect of sale or foreclosure; amount of lien deemed satisfied
19. / Gift to charity
20. / Effect of disposition on title of article
21. / Liability of lien claimant for non-compliance
22. / Redemption of article
PART IV
DISPUTE RESOLUTION
23. / Determination of rights by court
24. / Return of article when dispute
25. / Proper court
PART V
GENERAL
26. / Separate liens
27. / Service of documents
28. / Lien claimant’s rights and obligations
29. / Assignment of lien
30. / Destruction of books, records, etc.
31. / Power of sheriffs and bailiffs
31.1 / Powers of Minister
31.2 / Powers of registrar
32. / Regulations by Lieutenant Governor in Council
33. / Regulations by Minister
Definitions and interpretation
1(1)In this Act,
“article” means an item of tangible personal property other than a fixture; (“article”)
“lien claimant” means a person who is entitled to claim a lien for the repair, storage or storage and repair of an article; (“créancier privilégié”)
“motor vehicle” means a motor vehicle as defined in the regulations made under the Personal Property Security Act; (“véhicule automobile”)
“prescribed” means prescribed by a regulation made under this Act; (“prescrit”)
“registrar” and “branch registrar” mean, respectively, the registrar and a branch registrar under the Personal Property Security Act; (“registrateur”, “registrateur régional”)
Note: On a day to be named by proclamation of the Lieutenant Governor, the definition of ““registrar”and “branch registrar”” is repealed and the following substituted:
“registrar” means the registrar under the Personal Property Security Act; (“registrateur”)
See: 2012, c. 8, Sched. 52, ss. 1, 6.
“regulations” means the regulations made under this Act; (“règlements”)
“repair” means an expenditure of money on, or the application of labour, skill or materials to, an article for the purpose of altering, improving or restoring its properties or maintaining its condition and includes,
(a)the transportation of the article for purpose of making a repair,
(b)the towing of an article,
(c)the salvage of an article; (“réparation”)
“repairer” means a person who makes a repair on the understanding that the person will be paid for the repair; (“réparateur”)
“storer” means a person who receives an article for storage or storage and repair on the understanding that the person will be paid for the storage or storage and repair, as the case may be. (“entreposeur”) R.S.O. 1990, c.R.25, s. 1 (1); 2014, c. 9, Sched. 4, s. 1.
Repair, etc., by third party
(2)The following rules apply where an article is left for repair, storage or storage and repair and the article is forwarded by the person with whom the article is left to some other person for the repair, storage or storage and repair:
1.The person with whom the article was left shall be deemed to have performed the services and to be entitled to the rights of a repairer or storer against the person who left the article unless,
i.there is a written agreement between the person who left the article and the person with whom it was left that there is no lien, or
ii.the person with whom the article was left has agreed to act as agent for the person who left the article in forwarding it to an identified repairer or storer for the repair, storage or storage and repair.
2.Unless subparagraph ii of paragraph 1 applies, the person to whom the article was forwarded does not have a lien under this Act. R.S.O. 1990, c.R.25, s.1 (2).
Section Amendments with date in force (d/m/y)
2012, c. 8, Sched. 52, s. 1 - not in force
2014, c. 9, Sched. 4, s. 1 -01/07/2016
Act binds Crown
2This Act binds the Crown. R.S.O. 1990, c.R.25, s.2.
PART I
POSSESSORY LIENS
Repairer’s lien
3(1)In the absence of a written agreement to the contrary, a repairer has a lien against an article that the repairer has repaired for an amount equal to one of the following, and the repairer may retain possession of the article until the amount is paid:
1.The amount that the person who requested the repair agreed to pay.
2.Where no such amount has been agreed upon, the fair value of the repair, determined in accordance with any applicable regulations.
3.Where only part of a repair is completed, the fair value of the part completed, determined in accordance with any applicable regulations. 2014, c. 9, Sched. 4, s. 2 (1).
When lien arises
(2)A repairer’s lien arises and takes effect when the repair is commenced, except that no repairer’s lien arises if the repairer was required to comply with sections 56 and 57, subsection 58 (1) and section 59 of the Consumer Protection Act, 2002, if applicable, and the repairer has not done so. 2006, c.19, Sched.G, s.10 (1).
Tow and storage services
(2.0.1)Except as otherwise provided for in the regulations, if the repair includes one or more tow and storage services in respect of which Part VI.1 of the Consumer Protection Act, 2002 applies, no lien arises with respect to those services if the repairer fails to comply with the prescribed provisions of that Part, if any. 2014, c. 9, Sched. 4, s. 2 (2).
Amount of lien
(2.1)In cases where Part VI of Consumer Protection Act, 2002applies, the amount of a repairer’s lien under subsection (2) shall not exceed,
(a)the amount that the repairer is authorized to charge for the repair under subsection 58 (2) and section 64 of the Consumer Protection Act, 2002, if those provisions apply to the repairer; and
(b)the maximum amount authorized by the person who requested the repair, if section 56 of the Consumer Protection Act, 2002 applies to the person. 2006, c.19, Sched.G, s.10 (1).
Amount, tow and storage
(2.2)In cases where Part VI.1 of theConsumer Protection Act, 2002applies, the amount of a repairer’s lien under subsection (2) with respect to tow and storage services shall be determined in accordance with the prescribed requirements, if any. 2014, c. 9, Sched. 4, s. 2 (2).
Disposition
(3)A repairer has the right to sell an article that is subject to a lien in accordance with Part III (Redemption, Sale or Other Disposition) upon the expiration of the sixty-day period following the day,
(a)on which the amount required to pay for the repair comes due; or
(b)on which the repair is completed, if no date is stated for when the amount required to pay for the repair comes due. R.S.O. 1990, c.R.25, s.3 (3).
Deemed possession
(4)For the purposes of this Act, a repairer who commences the repair of an article that is not in the repairer’s actual possession shall be deemed to have gained possession of the article when the repair is commenced and shall be deemed to have given up possession when the repair is completed or abandoned. R.S.O. 1990, c.R.25, s.3 (4).
Idem
(5)A repairer who, under subsection (4), is deemed to have possession of an article may remove the article from the premises on which the repair is made. R.S.O. 1990, c.R.25, s.3 (5).
Section Amendments with date in force (d/m/y)
2004, c. 19, s. 20 (1) - no effect - see2006, c. 19, Sched. G, s. 6 - 22/06/2006
2006, c. 19, Sched. G, s. 10 (1) - 22/06/2006
2014, c. 9, Sched. 4, s. 2 (1) - 01/07/2016; 2014, c. 9, Sched. 4, s. 2 (2) - 01/01/2017
Storer’s lien
4(1)Subject to subsection (2), a storer has a lien against an article that the storer has stored or stored and repaired for an amount equal to one of the following, and the storer may retain possession of the article until the amount is paid:
1.The amount agreed upon for the storage or storage and repair of the article.
2.Where no such amount has been agreed upon, the fair value of the storage or storage and repair, determined in accordance with any applicable regulations.
3.Where only part of a repair is completed, the fair value of the storage and the part of the repair completed, determined in accordance with any applicable regulations. 2014, c. 9, Sched. 4, s. 3 (1).
Limit on storer’s lien
(2)A storer is not entitled to a lien for a repair made to an article unless the repair is made by the storer on the understanding that the storer would be paid for the repair or unless subsection 28 (2) applies. R.S.O. 1990, c.R.25, s.4 (2).
When lien arises
(3)A storer’s lien arises and takes effect when the storer receives possession of the article for storage or storage and repair, except that no storer’s lien arises with respect to repair if the storer was required to comply with sections 56 and 57, subsection 58 (1) and section 59 of the Consumer Protection Act, 2002, if applicable, and the storer has not done so. 2006, c.19, Sched.G, s.10 (2).
Tow and storage services
(3.0.1)Except as otherwise provided for in the regulations, if the storage or storage and repair includes one or more tow and storage services in respect of which Part VI.1 of the Consumer Protection Act, 2002 applies, no lien arises with respect to those services if the storer fails to comply with the prescribed provisions of that Part, if any. 2014, c. 9, Sched. 4, s. 3 (2).
Amount of lien
(3.1)In cases where Part VI of Consumer Protection Act, 2002applies, if a storer receives possession of an article for storage and repair, the amount of the storer’s lien under subsection (3) shall not exceed,
(a)the amount of the charge for the storage, together with the amount that the storer is authorized to charge for the repair under subsection 58 (2) and section 64 of the Consumer Protection Act, 2002, if those provisions apply to the storer; and
(b)the amount of the charge for the storage, together with the maximum amount authorized by the person who requested the repair, if section 56 of the Consumer Protection Act, 2002 applies to the person. 2006, c.19, Sched.G, s.10 (2).
Amount, tow and storage
(3.2)In cases where Part VI.1 of theConsumer Protection Act, 2002applies, the amount of a storer’s lien under subsection (3) with respect to the tow and storage services shall be determined in accordance with the prescribed requirements, if any. 2014, c. 9, Sched. 4, s. 3 (2).
Notice to owner, etc., articles
(4)Where the storer knows or has reason to believe that possession of an article that is subject to a lien was received from a person other than its owner or a person having its owner’s authority, the storer, within 60 days after the day of receiving the article, shall give written notice of the lien to every person whom the storer knows or has reason to believe is the owner or has an interest in the article, including every person who has a security interest in the article that is perfected by registration under the Personal Property Security Act against the name of the person whom the storer knows or has reason to believe is the owner. 2014, c. 9, Sched. 4, s. 3 (3).
Notice to owner, etc., articles of prescribed class
(4.1)Despite subsection (4), where the storer knows or has reason to believe that possession of an article of a prescribed class that is subject to a lien was received from a person other than its owner or a person having its owner’s authority, the storer, within a prescribed period after the day of receiving the article of the prescribed class, shall give written notice of the lien,
(a)to the persons mentioned in subsection (4); and
(b)to such other classes of persons and entities as may be prescribed. 2014, c. 9, Sched. 4, s. 3 (3).
Contents of notice
(5)A notice under subsection (4) or (4.1) shall contain,
(a)a description of the article sufficient to enable it to be identified;
(b)the address of the place of storage, the date that it was received and the name of the person from whom it was received;
(c)a statement that a lien is claimed under this Act by the storer in respect of the article;
(d)a statement advising how the article may be redeemed; and
(e)any other prescribed information. 2014, c. 9, Sched. 4, s. 3 (3).
Effect of failure to give notice, articles
(6)Where a storer fails to give the notice required by subsection (4),
(a)the storer’s lien as against the person who should have been given the notice is limited to the unpaid amount owing in respect of the period of 60 days from the day that the article was received; and
(b)the storer shall surrender possession of the article to that person where the person proves a right to possession and pays that unpaid amount. 2014, c. 9, Sched. 4, s. 3 (3).
Effect of failure to give notice, articles of prescribed class
(6.1)Where a storer fails to give the notice required by subsection (4.1),
(a)the storer’s lien as against the person who should have been given the notice is limited to the unpaid amount owing in respect ofthe period prescribed for the purposes of subsection (4.1) from the day that the article of the prescribed class was received; and
(b)the storer shall surrender possession of the article to that person where the person proves a right to possession and pays that unpaid amount.2014, c. 9, Sched. 4, s. 3 (3).
Disposition
(7)The storer has the right to sell an article that is subject to a lien in accordance with Part III (Redemption, Sale or Other Disposition) upon the expiration of the sixty-day period following the day on which the amount required to pay for the storage or storage and repair becomes due. R.S.O. 1990, c.R.25, s.4 (7).
Section Amendments with date in force (d/m/y)
2004, c. 19, s. 20 (2) - no effect - see 2006, c. 19, Sched. G, s. 6 - 22/06/2006
2006, c. 19, Sched. G, s. 10 (2) - 22/06/2006
2014, c. 9, Sched. 4, s. 3 (1, 3) - 01/07/2016; 2014, c. 9, Sched. 4, s. 3 (2) - 01/01/2017
Loss of lien
5A lien under this Part is discharged and cannot be revived as an interest in the article if possession of the article that is subject to the lien is surrendered to, or lawfully comes into the possession of, the owner or any other person who is entitled to receive a notice under subsection 15 (2). R.S.O. 1990, c.R.25, s.5.
Priority of lien
6A lien under this Part has priority over the interests of all other persons in the article. R.S.O. 1990, c.R.25, s.6.
PART II
NON-POSSESSORY LIENS
Non-possessory lien
7(1)A lien claimant who is entitled to a lien under Part I (Possessory Liens) against an article, and who gives up possession of the article without having been paid the full amount of the lien to which the lien claimant is entitled under Part I, has, in place of the possessory lien, a non-possessory lien against the article for the amount of the lien claimed under Part I that remains unpaid.
When lien arises
(2)A non-possessory lien arises and takes effect when the lien claimant gives up possession of the article.
Priority
(3)A non-possessory lien has priority over the interest in the article of any other person other than a lien claimant who is claiming a lien under Part I, and, where more than one non-possessory lien is claimed in the same article, priority shall be determined according to the same rules of priority as govern the distribution of proceeds under section 16.
Period of credit not to affect lien
(4)A non-possessory lien is not extinguished by reason only that the lien claimant has allowed a period of credit for the payment of the debt to which the lien relates.
Acknowledgment of indebtedness required
(5)A non-possessory lien is enforceable only if the lien claimant obtains a signed acknowledgment of the indebtedness which acknowledgment may be on an invoice or other statement of account.
Idem
(6)An acknowledgment of indebtedness under subsection (5) is without prejudice to the right of the owner or any other person to dispute in a proceeding the amount that the lien claimant is owed. R.S.O. 1990, c.R.25, s.7.
Transactions in ordinary course of business
8(1)A buyer of an article from a seller who sells it in the ordinary course of business takes it free of any non-possessory lien of a lien claimant whose lien arose from its repair or storage at the request of the seller or the seller’s agent, unless the buyer signs an acknowledgment referred to in subsection 7(5).
Idem
(2)Even though a buyer has signed an acknowledgment as provided in subsection (1), a purchaser purchasing the article in the ordinary course of the buyer’s business takes it free of the lien claimant’s lien. R.S.O. 1990, c.R.25, s.8.
Registration of documents
9(1)A claim for lien or change statement to be registered under this Part shall contain the required information presented in a required format. 2006, c.34, s.23(1).
Electronic transmission
(1.1)A claim for lien or change statement in a required format may be tendered for registration by direct electronic transmission to the database of the registration system established under the Personal Property Security Act. 2006, c.34, s.23(1).
Authorized person
(1.2)A claim for lien or change statement in a required format may be tendered for registration by direct electronic transmission only by a person who is, or is a member of a class of persons that is, authorized by the registrar to do so. 2006, c.34, s.23(1).
Errors in documents
(2)A claim for lien or change statement is not invalidated nor is its effect impaired by reason only of error or omission therein or in its execution or registration unless a reasonable person is likely to be misled materially by the error or omission. R.S.O. 1990, c.R.25, s.9(2).
Deemed not likely to be misled by errors or omissions
(3)For the purposes of subsection (2), in the case of a claim for lien or change statement in respect of a motor vehicle or in respect of two or more articles that include a motor vehicle, a reasonable person shall be deemed not likely to be misled materially, insofar as the lien against the motor vehicle is concerned, by the fact that the claim for lien or change statement has one or more errors or omissions described in subsection (4), if,
(a)the motor vehicle’s vehicle identification number is set out correctly in the designated place on the claim for lien or change statement;
(b)the claim for lien or change statement sets out at least the name of one debtor and, if the debtor is a natural person, his or her date of birth; and
(c)the claim for lien or change statement otherwise substantially complies with the requirements that apply for the purposes of subsection (1). 2017, c. 20, Sched. 9, s. 14.
Errors or omissions to which subs. (3) applies
(4)The errors or omissions to which subsection (3) applies are:
1.Regarding any debtor named in the claim for lien or change statement, the debtor’s name is set out incorrectly or in a way that does not comply with the requirements that apply for the purposes of subsection (1).
2.Regarding any debtor named in the claim for lien or change statement who is a natural person, the date of birth ofthe debtoris set out incorrectly or in a way that does not comply with the requirements that apply for the purposes of subsection (1). 2017, c. 20, Sched. 9, s. 14.