RSLA Handout - lod edfihf wfwefe PDF

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RSLA Repair and Storage Liens Act The RSLA is an Act relating to the rights of the repairer of goods repaired and stored. The Act has 5 parts and 32 sections. The Act came in to law in 1990. The Act in its entirety is available at www.elaws.gov.on.ca. Here is an overview of what is found in the Act. Definitions of terminology found in the Act ariticle - means an item of tangible personal property other than a fixture. Lien claimant - means a person who is entitled to claim a lien for the repair, storage or storage and repair of an article. Motor vehicle - means a motor vehicle as defined in the regulations made under the Personal Property Security Act prescribed - Prescribed by regulation made under this Act (Advise or Authorize) register - means registrar under the Personal Property Security Act. A registrar is an official responsible for keeping a register or official records. 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,   

The transportation of the article for purpose of making a repair. The towing of an article. The salvage of an article.

repairer- means a person who makes a repair on the understanding that the person will be paid for the repair.

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.

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Repairers lien - 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,  The amount that the person who requested the repair agreed to pay. 

There no such amount has been agreed upon, the fair value of the repair.

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Where only part of a repair is completed, the fair value of the part completed, and the repairer may retain possession of the article until the amount is paid.

Amount of lien - In cases where Part VI of Consumer Protection Act applies, the amount of a repairer’s lien shall not exceed, the amount that the repairer is authorized to charge for the repair under section 58 and section 64 of the CPA. Or the maximum amount of the estimate.

Stores lien - A storer has a lien against an article that the storer has stored or stored and repaired for an amount equal to, 

The amount agreed upon for the storage or storage and repair of the article.

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Where no such amount has been agreed upon, the fair value of the storage or storage and repair, including all lawful claims for money advanced, interest on money advanced, insurance, transportation, labour, weighing, packing and other expenses incurred in relation to the storage or storage and repair of the article.

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The storer may retain possession of the article until the amount is paid.

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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.

Amount of lien - In cases where Part VI of Consumer Protection Act applies, if a storer receives possession of an article for storage and repair, the amount of the storer’s lien shall not exceed, the amount of the charge for the storage, together with the amount that the storer is authorized to charge for the repair under section 58 and section 64 of the CPA. Or the maximum amount of the estimate.

PART I – possessory liens - “I have car and want to get paid!”  The repairer is deemed in possession of the article once repair has commenced.  The repairer deemed in possession of the article may remove it from the premises on which the repair is made.

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The repairer has the right to sell the article that is subject to a lien in accordance with PART III upon the expiration of the sixty-day period following the day on which the amount required to pay for repairs comes due or on the day the repair is completed when no date is specified. The storer within sixty days of receiving the article shall give written notice of the lien. The notice must be to everyone that has a registered claim to the article. E.g. anyone who is registered to a particular vehicle. The storers notice should include,  Description of the article  Address of the place of storage, the date it was received and the name of the person from whom it was received  A statement that a lien is claimed under the Act  A statement on how the article can be redeemed

If the storer fails to give notice he/she can only collect the unpaid amount owing in respect to the period of sixty days form the date when the article was received. The storer has the right to sell the article that is subject to the lien in accordance with PART III upon expiration of the sixty day period following the day on which the amount required to pay for the storage or storage and repair comes due.

PART II – redemption sale pr other dispostion - “I don’t have car and want to get paid!”      

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A non-possessory lien is only enforceable if the lien claimant obtains a signed acknowledgement of the indebtedness. E.g. an invoice or other statement of account. The amount of the acknowledgement of indebtedness can be disputed by the owner of the article. A Claim for lien statement form must be filled out by the claimant and be filed with the Personal Property Security Act registrar. The Claim for Lien expires 3 years from the registration of the claim or dates specified in the claim. Changes to a claim may be made through the registrar as long as the claim is still active. The claim is discharged and cannot be revived when,  Payment to the lien claimant has been made in the amount of the claim.  Payment into court under PART IV of the amount set out in the claim.  Upon order of the court.  Upon registration of a change made by claimant to discharge.  Upon the expiry of the registration period of the claim for lien.  If the article is a motor vehicle, upon change of ownership of the vehicle if a claim for lien was not registered before change of ownership. Lien claimant who has a non-possessory lien and has registered a claim for lien may deliver at any time to the sheriff for the area in which the article is located a copy of the registered claim for lien and a direction to seize the article. Once the sheriff has seized the article he then delivers it to the lien claimant.

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Once in possession of the lien claimant the claimant is entitled to sell the article in accordance to PART III if at least sixty days has expired since the day the lien arose and if the lien is due and still unpaid.

PART III – redemption sale or other disposition  The lien claimant must provide notice of their intention to sell the article. The notice must be in writing and be given at least fifteen days before the sale to the registered owner of the article or the person the claimant believes is the owner. Anyone who has a security interest in the article under the Personal Property Security Act.  The notice must include a description of the article the amount required to satisfy the lien and any associated costs with seizure. A statement of all the costs incurred with the storage and care of the article.

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A statement that the article may be redeemed by entitled if the total lien and costs associated are paid. The statement should include,  The name of the person to pay.  The address where the article can be redeemed.  The time which the article can be redeemed.  The telephone number of the person giving notice. A statement of the date, time and place of any public sale at which the article is to be sold. Or any date a private sale will take place on. A statement that the article may be sold unless it is redeemed on or before the day specified in the notice. The lien claimant may purchase the article but only at a public sale. The proceeds of the sale are used to pay off all of the costs associated with the article from selling to seizure to liens and finally any proceeds left over go to the original owner of the article. A lien claimant can in lieu of selling it keep the article by giving written notice to the persons entitled to notice. It can be objected within thirty days by persons entitled to notice. If objected lien claimant shall sell the article. Courts can rule objection ineffective if the fair market value is less than the amount of the lien. Or if the objection was made other than the protection of the interest in the article of the person who has given a written objection. Lien claimant who has retained possession of an article for twelve months after the right to sell the article may give the article to a charity registered under the Income Tax Act if the articles fair market value is less than the total amount of the claim. Or if no notice of intention to sell was issued. A lien claimant who fails to comply with the requirements is liable to any person who suffers damages as a result and shall pay the person an amount equal to the greater of $200.00 or the actual damages.

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At any time before the article is sold, given to charity or retained by the claimant the owner may redeem the article by paying the amount required to satisfy the lien. The Lien claimant must keep records for up to 6 years.

PART IV – dispute resolution  There is a special procedure in the act that allows an owner who disputes the amount of the lien to have the goods returned.  The owner must make an application to court and pay the full amount in dispute into court. In the application, the owner may indicate the amount (if any) which the owner believes is owing and which the owner is willing to offer in payment to the lien claimant.  The court will then issue an initial certificate to the owner. The owner must give the lien claimant the initial certificate.  If the lien claimant believes that the amount paid into court is not the full amount owing, the lien claimant must, within days of receiving the initial certificate, file a notice of objection with the court indicating what the full amount owing is.

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The owner, upon payment into court of the additional amount, will be given a final certificate to give the lien claimant. The lien claimant must immediately release the article to the owner and then accept the amount offered in settlement by the owner or commence a law suit for the full amount. If a lien claimant does not return the article or file a notice of objection within three days of receiving the initial certificate or does not release the article immediately upon receiving the final certificate, the owner can have the sheriff or bailiff seize the article. If the lien claimant fails to accept the amount offered in settlement by the owner or commence an action within 90 days from the date that the owner regains possession of the article (either because the sheriff or bailiff has seized it or it has been voluntarily returned), the owner can have the money paid into court returned. This procedure enables the owner to regain possession of the article while at the same time the money paid into court protects the lien claimant's claim. The dispute no longer centres on the article; it centres on the full amount paid into court.

ART V - general  Part V of the Act has general information about the liens.  Information about records that are kept and information that is in the Personal Property Security Registry.  Information on the power and restrictions of sheriffs and bailiffs.  As well as other general information. PPSR (Personal Property Security Registry) In Canada, Government databases that maintain public records showing security interests in personal property (chattels) for lenders, sellers, repairers, taxing authorities, government agencies, purchasers and the general public, are known as Personal Property Security Registries (PPSR). They are governed by Provincial Statutes known as Personal Property Security Acts (PPSA) and nine out of the ten provinces as well as the two of the three territories have enacted Personal Property Security Acts based roughly on Article 9 of the Uniform Commercial Code of School of Transportation Technology

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the United States. It is expected that Nunavut will follow in the near future. (They currently use the Act from the North West Territories) In addition, the Civil Code of Quebec has recently been revised. Chattel - A personal possession, an item of property other than real estate. PPSR allows the consumer to contact the lien claimant to confirm if the lien has been paid. If it has been paid consumer should request that the lien claimant register a discharge before the sale is completed.  A search is not required when buying a new car or new goods from a dealer.  A search is also not required when buying a used car from a registered motor vehicle dealer in Ontario unless the car is worth more than $10 000.00. If so a VIN search should be done. Before buying a used vehicle it is wise to search both the VIN and the name of the business or individual selling the vehicle to ensure there are no liens against the vehicle this search will also tell you whether the vehicle is branded as a “Rebuilt” or even “Salvage”

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