This script explains what warehouse liens are and how they work under When someone leaves goods at a storage facility, the business has a legal claim on the BC ''[http://wwwgoods.bclawsThis is called a “warehouse lien”.ca/civix/document/id/complete/statreg/96480_01 Warehouse Lien Act]'' (It can help the Act)business recover their fees.

==What is a warehouse lien?Understand your legal rights== ===A warehouse lien (also known as helps a storage facility get paid=== Under the [http://canlii.ca/t/84fm law in BC], a '''warehouse lien for storage'') ' is a charge or legal claim by made on goods stored with a person “warehouser”. A warehouser is someone in the business of storing goods (known as a “warehouser”) on goods stored in their warehouse. A The warehouse lien helps ensure a warehouser get gets paid for storing goods. It lets them keep those goods and eventually sell them to recover the cost of storage if the owner of the goods does not pay for the storage. Warehousers automatically have a lien on goods given to them for storage, whether the goods are given by the owner of goods or by any person who the owner gave the goods to. ==Does a warehouse lien exist and what amounts does it cover—sections 2 and 3==A warehouse lien exists automatically—unless it’s void under section 3 (explained in the next section). Also, the lien exists regardless of who left the goods for storage: the owner of the goods, someone with the owner’s authority, or someone who received the goods from the owner or from a person with the owner’s authority.

A warehouse lien covers reasonable charges for all the following things:* storing and preserving the goods;* any money If the warehouser isn’t paid for the goods including interest, insurance, transportation, labour, weighing, and other expenses; and* any notice the warehouser had lien allows them to give under keep the Act, stored goods and advertising and selling the goods if they are not paid for before they are advertised sell them to recover their storage fees and soldrelated costs.

==Notice of =How a warehouse lien if goods left not by owner—section 3is established===The warehouser must give notice of the Warehousers automatically have a lien to the owner of the goods, but only if owner (or a person they authorized) was not the one who deposited the on goods left with them for storage at when the warehouse. If goods are left by:*the owner of the goods (or a person they authorized) left the goods at the warehouse, no notice is needed because the owner already knows the goods are there. On *someone with the other handowner’s authority, if a person who had the goods (because the owner or a *any person they authorized gave them entrusted with the goods) put the goods in storage, then by the owner is entitled to notice of this.

The In the third case, there is an additional requirement for the warehouser to preserve their lien. Where the goods were left for storage by a person entrusted with them by the owner, the warehouser must also give '''written notice ''' of the warehouse lien to anyone who had registered a financing statement the owner of a security interest in the goods. This security interest The warehouser must have existed at the time give this notice within '''two months''' of the goods were being left at the warehousewith them.

ImportantlyIf someone has registered a security interest in the goods, the warehouser must also give the notice of the lien within 2 months of when the goods were left at the warehouse. The notice must have all the following information:* a brief description of the goods;* the location of the warehouse where the goods are stored, the date they were left there, and the name of the person who left to them; and* a statement that the warehouser is claiming a lien for the goods under the Act.

==Lien not valid if required This notice not given—section 3==must include:The lien no longer exists against *a person if brief description of the warehouser does not give notice to that persongoods, as section 3 requires. For example, if a warehouser knew that a person who is not *the owner location of the goods (or a person acting with the owner’s authority) left warehouse where the goods for storage—and the warehouser does not give notice of the lien to the owner—the lien no longer exists against the owner after 2 months from when the warehouser knew who the owner was. Similarlyare stored, if the warehouser knew that a financing statement had been registered against the goods when date they were leftthere, but does not give notice to and the name of the person with the security interest in the goodswho left them, the lien no longer exists against and *a statement that person after 2 months from when the warehouser knew who is claiming a warehouse lien on the person wasgoods.

==Notice that =If a warehouser intends to sell the goods—section 4does not get paid===Warehousers who want to If a warehouser does not get paid storage fees they are due, the warehouser can sell the by public auction any goods to pay off the debt must use on which they have a public auctionwarehouse lien. FirstIn doing so, they must give written notice to the following four parties (using one of the two methods in section 8) that they intend to sell the goodsfollow a process set out under [http:*the person who owes the debt to the warehouser for the goods.*the owner of the goods.*anyone who has registered a financing statement of their security interest in the goods by the time the goods were left at the warehouse//canlii.*anyone else the warehouser knows to have—or claim to have—an interest in the goodsca/t/84fm BC law].

This ====The warehouser must give written notice must have all the following information:*a brief description of the goods;their intention to sell====*the location of the warehouse where the goods are storedFirst, the date warehouser must give written notice to specific parties that they were left there, and '''intend to sell the name of goods'''. These parties include the person who left them;*an itemized statement owner of the warehouse’s chargesgoods, showing the amount due at the time of the notice;*a demand to pay the amount due (and other charges that may accrue) by the date shown in person owing the noticestorage fees, not less than 21 days from the delivery of the notice if it is personally delivered (if the notice is mailed, then 21 days from when the notice should reach its destination by regular mail); and*anyone who had a statement that, unless the charges are paid by the date registered security interest in the notice, the goods will be advertised for sale and sold by public auction at a the time and place set in the noticegoods were left for storage.

==Advertising that The notice must describe the goods will be sold by public auction—section 4==and the storage arrangements, as well as:If *an itemized statement of the warehouser’s charges are not paid by , showing the amount due at the date in time of the notice, *a demand to pay the warehouser must advertise the sale before holding the public auction. The advertisement must be published at least once charges due by a week for 2 consecutive weeks in a newspaper in certain date, not less than 21 days from the local area where delivery of the sale is to be heldnotice, and must contain all the following:*a description of statement that, unless the charges are paid by the date in the notice, the goods to will be sold;*the name of the person who owes the debt for the charges covered by the lien;*the public auction at a time and place of set in the salenotice.

====The warehouser must wait for advertise the public auction====If the warehouser’s charges are not paid by the date in the notice, the warehouser must '''advertise the public auction'''. The ad must be published at least 14 days after once a week for two consecutive weeks in a newspaper in the local area where the first advertisement auction is published to sell the goodsbe held.

==What happens with the sales proceeds—section 6==The warehouser must use wait at least 14 days after the money from selling first ad is published before holding the public auction. ===Anyone with an interest in the goods to can pay off the debt for storing them and ===At any time before the other charges allowed under section 2. If any money is left after these charges goods are paidsold at auction, any person claiming an interest in the warehouser must goods can pay it to a person entitled to it, along with a statement showing how off the amount paid was calculatedwarehouse lien. If it’s not clear who is entitled to any remaining money, or if a person entitled to This involves paying the storage fees that are owing as well as the money has not demanded it within 10 days of warehouser’s expenses in preparing for the sale, the warehouser must pay it into the Supreme Court of British Columbia, along with a calculation statement.

What happens if the warehouser is paid before the sale—section 7Anyone with an interest in the goods can pay the debt for storing them and the other charges allowed under section 2. If this happens, the warehouser must then deliver the goods to the person who paid the debt—if debt — as long as that person is entitled to the goods. Otherwise, the warehouser must keep the goods pursuant to the contract they signed when the goods were left with them.

==Ways =What happens to give notice—section 8the sale proceeds===The required written notice must be given in one of two ways:*delivering Where the notice to goods are sold at auction, the person; or*mailing warehouser must satisfy the notice to warehouse lien from the person at sale proceeds. This involves covering their charges for storing and preserving the person’s last known addressgoods, by registered mailand any reasonable charges from the sale.

==Can self-storage operators claim a warehouse lien?==No—only a If any money is left after these charges are paid, the warehouser can claim a warehouse lien. The Act defines a warehouser as a must pay it to the person in the business of storing goods as a bailee for hireentitled to it. Self-storage operators are If it’s not bailees for hireclear who is entitled to any remaining money, so they cannot claim a warehouse lienthe warehouser must pay it into court.

==What problems does the Act present for a warehouser?Common questions==To claim a lien, a warehouser must still have the goods. The Act does not permit a “non-possessory lien”, meaning a lien over goods that a person no longer has. So if a warehouser has returned the goods to the person who left them before being paid for storing them, the lien is no longer valid. Warehousers must be careful not to give up goods that they have a lien on before they are paid for storing those goods.

==More information=Can self-storage operators claim a warehouse lien?===A warehouse lien is only one type of lienNo. [http://canlii. Other types exist, in both common ca/t/84fm BC law and under other statutes, and ] defines “warehouser” as a lien is only one type person in the business of remedy. Other remedies are available to collect debts, including hiring storing goods “as a collection agency, suing, seizing and selling assets, and garnishing wagesbailee for hire”. Script [[Collection A bailee for hire is someone who takes care of Debts (Script 250)|250]], “Collection property left with them as someone would take of Debts”, has more informationtheir own property. The law in Self-storage facilities do not meet this area can be complex. For legal advice, consult a lawyerdefinition.

The ''[http://www===What happens to a warehouse lien if the warehouser gives the goods up?===To claim a warehouse lien, a warehouser must have the goods.bclaws.ca/civix/document/id/complete/statreg/96481_01 Warehouse Receipt Act]'', may also apply in these situationsIf a warehouser has returned the goods to the person who left them before being paid for storing them, but it’s beyond the scope of this scriptlien is no longer valid.

'''The above was last reviewed for legal accuracy by [https://www.ganapathico.com/our-team/nathan-ganapathi/ Nathan Ganapathi] and [https://www.ganapathico.com/our-team/anna-kurt/ Anna Kurt and Nathan ], Ganapathi, and edited by John BloisLaw Group.'''