Repair and Storage Liens Act

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Sections83

• 1Definitions 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”) “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 …

• 1.
• 2Act binds Crown

  2 This Act binds the Crown. R.S.O. 1990, c. R.25, s. 2.

• 2.
• [s2]

  PART I POSSESSORY LIENS

• PART I POSSESSORY LIENS
• 3Repairer’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,…

• 3.
• 4Storer’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 subse…

• 4.
• 5Loss of lien

  5 A 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.

• 5.
• 6Priority of lien

  6 A 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.

• 6.
• [s7]

  PART II NON-POSSESSORY LIENS

• PART II NON-POSSESSORY LIENS
• 7Non-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 o…

• 7.
• 8Transactions 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.

• 8.
• 9Registration 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 …

• 9.
• 10Claim for lien

  10 (1) A non-possessory lien is enforceable against third parties only if a claim for lien has been registered, and, where a person acquires a right against an article after a non-possessory lien arises, the right of the person has priority over the non-possessory lien of the lien claimant if a claim for lien was not registered before the person acquired the right. R.S.O. 1990, c. R.25, s. 10 (1). Idem (2) A claim for lien may relate to more than one article and may be registered at any time after an acknowledgment of indebtedness has been signed. R.S.O. 1990, c. R.25, s. 10 (2). Idem (3) A claim for lien is effective from the time assigned to its registration by the registrar or branch registrar and expires at, and cannot be renewed after, the end of the earlier of, (a) the end of the registration period as set out in the claim for lien or as extended by the most recent change statement…

• 10.
• 11Change statements

  11 The registration of a change statement is effective from the time assigned to its registration by the registrar or branch registrar and is effective so long as the registration of the claim for lien to which it relates is effective. R.S.O. 1990, c. R.25, s. 11. Section Amendments with date in force (d/m/y) 2012, c. 8, Sched. 52, s. 3 - see Table of Public Statute Provisions Repealed Under Section 10.1 of the Legislation Act, 2006 - 31/12/2022

• 11.
• 12Discharge

  12 (1) A non-possessory lien is discharged and cannot be revived as an interest in the article, (a) upon payment to the lien claimant of the amount of the lien claimed; (b) upon payment into court under Part IV (Dispute Resolution) of the amount set out in the claim for lien; (c) upon the order of a court; (d) upon the registration of a change statement recording the discharge; (e) upon the expiry of the registration period of the claim for lien; and (f) if the article is a motor vehicle, upon a change of ownership of the vehicle if a claim for lien was not registered before the change of ownership occurred. Partial discharge (2) Where a claim for lien relates to more than one article and it is agreed to release one or more, but not all, of the articles from the lien, a change statement recording the release may be registered. Idem (3) Where a release described in subsection (2) is given…

• 12.
• 13Correction of registrar’s records

  13 Upon application to the Superior Court of Justice, the court may order the registrar to amend the information recorded in the central file of the registration system to indicate that the registration of a claim for lien has been discharged or has been partially discharged, upon any grounds and subject to any conditions that the court considers appropriate in the circumstances. R.S.O. 1990, c. R.25, s. 13; 2000, c. 26, Sched. B, s. 18 (1). Section Amendments with date in force (d/m/y) 2000, c. 26, Sched. B, s. 18 (1) - 06/12/2000

• 13.
• 14Seizure of article

  14 (1) A lien claimant who has a non-possessory lien and who has registered a claim for lien may deliver at any time to the sheriff for the area in which the article is located, (a) a copy of the registered claim for lien; and (b) a direction to seize the article, in the prescribed form. 2017, c. 20, Sched. 11, s. 30. Idem (2) Upon receipt of a copy of a registered claim for lien and a direction to seize an article under subsection (1), the sheriff shall seize the article described in the direction wherever it may be found and shall deliver it to the lien claimant who issued the direction. R.S.O. 1990, c. R.25, s. 14 (2). Other powers of seizure not affected (3) Nothing in subsection (1) or (2) prevents a lien claimant from exercising any lawful power of seizure with respect to the article whether provided for by contract or otherwise available to the lien claimant by law. R.S.O. 1990, c…

• 14.
• [s16]

  PART III REDEMPTION, SALE OR OTHER DISPOSITION

• PART III REDEMPTION, SALE OR OTHER DISPOSITION
• 15Sale of article

  15 (1) A lien claimant who has a right, under this Act, to sell an article shall not exercise that right unless the lien claimant has given notice of intention to sell the article. Idem (2) A notice of intention to sell an article shall be in writing and shall be given at least fifteen days before the sale to, (a) the person from whom the article was received for repair, storage or storage and repair; (b) where the article was received for repair, storage or storage and repair from a person other than the owner, (i) the person who is the registered owner of the article, if the article is a motor vehicle, or (ii) the person the lien claimant knows or has reason to believe is the owner, if the article is not a motor vehicle; (c) every person who has a security interest in the article under the Personal Property Security Act that is perfected by registration against, (i) the name of the own…

• 15.
• 16Proceeds of sale

  16 (1) Where a lien claimant has sold an article under this Part, the proceeds of sale shall be applied consecutively, (a) to the reasonable expenses of selling the article; (b) to the costs of seizure; (c) where the lien claimant making the sale has a possessory lien under Part I, to the satisfaction of the lien of the lien claimant making the sale; (d) where the lien claimant making the sale has a possessory lien under Part I, to the satisfaction of the lien of every lien claimant who has a registered non-possessory lien under Part II against the article, who gives the lien claimant making the sale written notice of the amount owing in respect of the registered non-possessory lien claimed by the person giving the notice before or within ten days after the sale, in reverse order to the order in which the lien claimants gave up possession; (e) where the lien claimant making the sale has …

• 16.
• 17Retention of article

  17 (1) A lien claimant who has a right to sell an article may propose, in lieu of selling it, to retain the article in satisfaction of the amount of the lien claimed by giving written notice of the proposal to the persons entitled to notice under subsection 15 (2). R.S.O. 1990, c. R.25, s. 17 (1). Objection (2) Where a person entitled to notice under subsection (1) gives the lien claimant a written objection to the proposal within thirty days of the receipt of the proposal, the lien claimant, subject to subsections (3) and (4), shall sell the article in accordance with section 15. R.S.O. 1990, c. R.25, s. 17 (2). Application to court (3) Upon application to the Superior Court of Justice and upon notice to every person who has given a written objection to the proposal, the court may order that the objection is ineffective because, (a) the objection was made for a purpose other than the pr…

• 17.
• 18Effect of sale or foreclosure; amount of lien deemed satisfied

  18 Where a lien claimant, (a) sells an article under section 15; or (b) is deemed to have elected irrevocably to retain the article under subsection 17 (4),

• 18.
• [s21]

  the lien claimant shall be deemed to have sold the article or retained the article in full satisfaction of the amount owing in respect of the lien. R.S.O. 1990, c. R.25, s. 18.

• 19.
• 19Gift to charity

  19 (1) A lien claimant who has retained possession of an article for twelve months after the right to sell the article arose may give the article to a charity registered under the Income Tax Act (Canada) if, (a) the article has a fair market value of less than the total of the amount of the lien claimed by the lien claimant and the amount of the estimated expenses to which the lien claimant is entitled under this Act; and (b) the lien claimant has not given a notice of intention to sell under section 15 or a notice of a proposal to retain the article under section 17. R.S.O. 1990, c. R.25, s. 19 (1); 2004, c. 16, Sched. D, Table. Records to be maintained (2) A lien claimant who disposes of an article under this section shall maintain for six years a record of the article disposed of and the charity to which it was given. R.S.O. 1990, c. R.25, s. 19 (2); 2004, c. 16, Sched. D, Table. Sect…

• 20.
• 20Effect of disposition on title of article

  20 (1) Although a lien claimant has failed to comply with this Part, a purchaser who buys an article in good faith, (a) in a sale under section 15; or (b) from a lien claimant who has retained an article under section 17, acquires the article free of the interest of the owner and any person entitled to notice under this Part. R.S.O. 1990, c. R.25, s. 20 (1). Idem (2) A charity that is given an article by a lien claimant under section 19, acquires the article free of the interest of the owner and all other persons. R.S.O. 1990, c. R.25, s. 20 (2); 2004, c. 16, Sched. D, Table. Section Amendments with date in force (d/m/y) 2004, c. 16, Sched. D, Table - 01/01/2004

• 21.
• 21Liability of lien claimant for non-compliance

  21 A lien claimant who fails to comply with the requirements of this Part is liable to any person who suffers damages as a result and shall pay the person an amount equal to the greater of $200 or the actual damages. R.S.O. 1990, c. R.25, s. 21.

• 22.
• [s25]
• 22Redemption of article

  22 At any time before the lien claimant, (a) has sold the article under section 15 or contracted for such sale; (b) is deemed to have irrevocably elected to retain the article under section 17; or (c) has given the article to a charity under section 19,

• PART IV DISPUTE RESOLUTION
• [s26]

  the owner and any person referred to in subsection 15 (2) may redeem the article by paying the amount required to satisfy the lien. R.S.O. 1990, c. R.25, s. 22; 2004, c. 16, Sched. D, Table. Section Amendments with date in force (d/m/y) 2004, c. 16, Sched. D, Table - 01/01/2004

• 23.
• [s27]

  PART IV DISPUTE RESOLUTION

• 24.
• 23Determination of rights by court

  23 (1) Any person may apply to a court for a determination of the rights of the parties where a question arises with respect to, (a) the seizure of an article under Part II (Non-possessory Liens), any right of seizure in respect of the article, whether the costs of seizure are recoverable or whether they exceed the amount permitted under subsection 14 (3.1); (b) the sale of an article under Part III (Redemption, Sale or Other Disposition); (c) the distribution of the proceeds of the sale of an article under Part III, including the right of any person to share in those proceeds, and the obligation of any lien claimant to account for those proceeds; (d) the amount of a lien or the right of any person to a lien; and (e) any other matter arising out of the application of this Act, and the court may make such order as it considers necessary to give effect to those rights. R.S.O. 1990, c. R.25…

• 25.
• [s29]
• 24Return of article when dispute

  24 (1) Where a claimant claims a lien against an article under Part I (Possessory Liens) and refuses to surrender possession of the article to its owner or any other person entitled to it and where one of the circumstances described in subsection (1.2) exists, the owner or other person lawfully entitled to the article may apply to the court in accordance with the procedure set out in this section to have the dispute resolved and the article returned. 2000, c. 26, Sched. B, s. 18 (2). Same, non-possessory lien (1.1) Where a claimant claims a lien against an article under Part II (Non-Possessory Liens), where the person who has possession of the article refuses to surrender it to its owner or any other person entitled to it and where one of the circumstances described in subsection (1.2) exists, the owner or other person lawfully entitled to the article may apply to the court in accordance…

• PART V GENERAL
• 25Proper court

  25 An application under this Part may be brought in any court of appropriate monetary jurisdiction. R.S.O. 1990, c. R.25, s. 25.

• 26.
• [s31]

  PART V GENERAL

• 27.
• 26Separate liens

  26 (1) A separate lien arises under this Act each time an article is repaired, stored or stored and repaired. No tacking (2) A lien under this Act cannot be tacked onto another lien under this Act. R.S.O. 1990, c. R.25, s. 26.

• 27. #32
• 28.
• 27Service of documents

  27 (1) A document required or permitted to be given under this Act may be, (a) given personally; (b) sent by certified or registered mail or prepaid courier to, (i) the intended recipient’s address for service if there is one, (ii) the last known mailing address of the intended recipient according to the records of the person sending the document, where there is no address for service, or (iii) the most recent address of the intended recipient as shown on a claim for lien or change statement registered under this Act or as shown on a financing statement or financing change statement registered under the Personal Property Security Act; or (c) given by any other prescribed method of delivery. 2014, c. 9, Sched. 4, s. 4. Prescribed person or entity (2) Despite subclauses (1) (b) (i) to (iii), a document referred to in subsection (1) that is sent by certified or registered mail or prepaid co…

• 29.
• 28Lien claimant’s rights and obligations

  28 (1) Where an article that is subject to a lien is in the lien claimant’s possession, the lien claimant, (a) shall use reasonable care in the custody and preservation of the article, unless a higher standard of care is imposed by law; and (b) unless otherwise agreed, (i) shall keep the article identifiable, and (ii) may create a security interest under the Personal Property Security Act in the article, but only upon terms that do not impair a right of redemption under that Act or this Act. R.S.O. 1990, c. R.25, s. 28 (1). Reasonable expenses (2) Unless otherwise agreed, a lien claimant is entitled to recover the commercially reasonable expenses incurred in the custody, preservation and preparation for sale of an article that is subject to a lien, including the cost of insurance and the payment of taxes or other charges incurred therefor, and the expenses are chargeable to and secured b…

• 30.
• 29Assignment of lien

  29 (1) A lien claimant may assign the lien claimant’s right to a lien by an instrument in writing. Idem (2) An assignment of a possessory lien under Part I becomes effective when the lien claimant delivers possession of the article to the assignee. Idem (3) An assignment of a non-possessory lien under Part II is enforceable against third parties only if a change statement recording the assignment has been registered under subsection 10 (5) or a claim for lien has been registered under clause 10 (6) (b). R.S.O. 1990, c. R.25, s. 29.

• 31.
• 30Destruction of books, records, etc.

  30 (1) The registrar may authorize the destruction of books, documents, records or paper that have been microfilmed or that in the registrar’s opinion need not be preserved any longer. Removal of information from registration system (2) The registrar may remove from the central file of the registration system information related to a claim for lien or a change statement, (a) if the claim for lien is no longer effective; (b) upon the receipt of a change statement discharging the registration of a claim for lien; (c) upon receipt of a court order requiring the registrar to amend the information recorded in the central file to indicate the discharge of a claim for lien or a change statement. Idem (3) The registrar, upon notice to the lien claimant, may remove from the central file of the registration system information related to a change statement if, (a) it does not set out the correct fi…

• 31Power of sheriffs and bailiffs

  31 (1) A sheriff acting under a direction to seize an article or a writ of seizure, or a bailiff acting under a writ of seizure, may use reasonable force to enter land and premises if the sheriff or bailiff believes, on reasonable and probable grounds, that the article to be seized is there and reasonable force may be used to execute the direction or writ. Restriction (2) A sheriff acting under a direction to seize an article or a writ of seizure, or a bailiff acting under a writ of seizure, in respect of an article in a dwelling shall not use force to enter the dwelling or to execute the direction or writ except under the authority of, (a) the order of a court of competent jurisdiction, in the case of a direction to seize an article; (b) the order of the court that issued the writ, in the case of a writ of seizure. Court orders (3) A court may make an order for the purposes of subsectio…

• 32.
• 31.1Powers of Minister

  31.1 (1) The Minister responsible for the administration of this Act may make orders, (a) requiring the payment of fees and specifying the amounts of those fees; (b) specifying forms other than those referred to in clause 33 (a), the information to be contained in such forms, the manner of recording the information, including the manner of setting out names, and the persons who shall sign such forms; (c) requiring that claim for lien forms and change statement forms to be registered under Part II shall be those provided or approved by the registrar; (c.1) governing the information to be included in a claim for lien or change statement to be registered under Part II and the format or formats of those claims for lien and change statements; (c.2) governing the tendering for registration of claims for lien and change statements; (d) governing the time assigned to the registration of claims f…

• 31.2

  31.2 Section Amendments with date in force (d/m/y) 2012, c. 8, Sched. 52, s. 5 - see Table of Public Statute Provisions Repealed Under Section 10.1 of the Legislation Act, 2006 - 31/12/2022 2017, c. 20, Sched. 11, s. 34 - no effect - see Table of Public Statute Provisions Repealed Under Section 10.1 of the Legislation Act, 2006 - 31/12/2022

• 32Regulations by Lieutenant Governor in Council

  32 (1) The Lieutenant Governor in Council may make regulations, (a) governing the determination of “fair value” for the purposes of, (i) fair value of the repair or part of the repair under paragraphs 2 and 3 of subsection 3 (1), (ii) fair value of the storage or storage and repair or part of the repair under paragraphs 2 and 3 of subsection 4 (1). (b) Repealed: 2017, c. 20, Sched. 11, s. 35 (1). (c) respecting anything that under this Act may be prescribed or provided for in the regulations other than matters with respect to which the Minister is authorized by section 33 to make regulations. 2014, c. 9, Sched. 4, s. 6; 2017, c. 20, Sched. 11, s. 35 (1, 2). Same (2) A regulation made under clause (1) (a) may provide that the determination of “fair value” shall be made in accordance with any applicable municipal by-law. 2014, c. 9, Sched. 4, s. 6. Saving (3) Regulations made by the Lieute…

• 32. #40
• 33Regulations by Minister

  33 The Minister responsible for the administration of this Act may make regulations, (a) prescribing forms for each of the following items, the information to be contained in each form, the manner of recording the information, including the manner of setting out names, and the persons who shall sign each form: (i) a direction to seize an article under subsection 14 (1), (ii) an application to the Small Claims Court under section 23, (iii) an application under section 24, (iv) an initial certificate under subsection 24 (5), (v) a notice of objection by a respondent under subsection 24 (6), (vi) a final certificate under subsection 24 (7), (vii) a writ of seizure under subsection 24 (9), (viii) a receipt under subsection 24 (11) for an article that a respondent releases to an applicant in compliance with an initial or final certificate, (ix) a receipt under subsection 24 (11) for an articl…