Warehousemen's Lien Act

Short title

1 This Act may be cited as the Warehousemen's Lien Act. R.S., c. 499, s. 1.

Interpretation

2 In this Act,

(a) "charges" has the meaning assigned to it in Section 3;

(b) "goods" includes all chattels personal other than things in action and money;

(c) "warehouseman" means a person who receives goods for storage for reward. R.S., c. 499, s. 2.

Lien of warehouseman

3 (1) Subject to Section 4 every warehouseman shall have a lien on goods deposited with him for storage, whether deposited by the owner of the goods or by his authority or by any person entrusted with the possession of the goods by the owner or by his authority.

Charges for which lien arises

(2) The lien shall be for the amount of the warehouseman's charges, that is to say,

(a) all lawful charges for storage and preservation of the goods;

(b) all lawful claims for money advanced, interest, insurance, transportation, labour, weighing, cooperage and other expenses in relation to the goods; and

(c) all reasonable charges for any notice required to be given under this Act and the Warehouse Receipts Act and for notice and advertisement of sale and for sale of the goods where default is made in satisfying the warehouseman's lien. R.S., c. 499, s. 3.

Notice of lien to owner of goods deposited by another

4 (1) Where the goods on which a lien exists were deposited, not by the owner or by his authority, but by a person entrusted by the owner or by his authority with the possession of the goods, the warehouseman shall, within two months after the date of the deposit, give notice of the lien to

(a) the owner of the goods; and

(b) any 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 in the Personal Property Registry pursuant to the Personal Property Security Act.

Form and content of notice

(2) The notice shall be in writing and contain

(a) a brief description of the goods;

(b) a statement showing the location of the warehouse where the goods are stored, the date of their deposit with the warehouseman and the name of the person by whom they were deposited; and

(c) a statement that a lien is claimed by the warehouseman in respect to the goods under this Act.

Failure to give notice

(3) Where the warehouseman fails to give the notice required by this Section, his lien, as against the person to whom he has failed to give notice, shall be void as from the expiration of the period of two months from the date of the deposit of the goods. R.S., c. 499, s. 4; 1995-96, c. 13, s. 88.

Power of sale

5 (1) In addition to all other remedies provided by law for the enforcement of liens or for the recovery of warehouseman's charges, a warehouseman may sell by public auction, in the manner provided in this Section, any goods upon which he has a lien for charges which have become due.

Notice of intention to sell

(2) The warehouseman shall give written notice of his intention to sell to

(a) the person liable as debtor for the charges for which the lien exists;

(b) the owner of the goods and to any 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 pursuant to the Personal Property Security Act; and

(c) repealed 1995-96, c. 13, s. 88

(d) any other person known by the warehouseman to have or claim an interest in the goods.

Content of notice of sale

(3) The notice shall contain

(a) a brief description of the goods;

(b) a statement showing the location of the warehouse where the goods are stored, the date of their deposit with the warehouseman and the name of the person by whom they were deposited;

(c) an itemized statement of the warehouseman'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 such further charges as may accrue shall be paid on or before a day mentioned not less than twenty-one days from the delivery of the notice; 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.

Advertisement of sale

(4) Where the charges are not paid on or before the day mentioned in the notice, an advertisement of the sale, describing the goods to be sold and stating the name of the person liable as debtor for the charges for which the lien exists and the time and place of the sale, shall be published at least once a week for two consecutive weeks in a newspaper published in the Province and circulating in the locality where the sale is to be held.

Date of sale

(5) The sale shall be held not less than fourteen days from the date of the first publication of the advertisement referred to in subsection (4). R.S., c. 499, s. 5; 1995-96, c. 13, s. 88.

Irregularity of notice

6 When a notice of lien under Section 4 or a notice of intention to sell under Section 5 has been given, but such provisions have not been strictly complied with, if the court or a judge before whom any question respecting the notice is tried or inquired into considers that such provisions have been substantially complied with or that it would be inequitable that the lien or sale shall be void by reason of such non-compliance, no objection to the sufficiency of the notice shall in any such case be allowed to prevail so as to release or discharge the goods from the lien or vitiate the sale. R.S., c. 499, s. 6.

Proceeds of sale

7 (1) From the proceeds of the sale the warehouseman shall satisfy his lien and shall pay over the surplus, if any, to the person entitled thereto and the warehouseman shall when paying over the surplus deliver to the person to whom he pays it a statement of account showing how the amount has been computed.

Surplus

(2) If the surplus is not demanded by the person entitled thereto within ten days after the sale or if there are different claimants or the rights thereto are uncertain, the warehouseman shall pay the surplus into the Supreme Court or county court upon the order of a judge, and the order may be made ex parte upon such terms and conditions as to cost and otherwise as the judge may direct and may provide to what fund or name the amount shall be credited.

Duty to file statement of account

(3) The warehouseman, at the time of paying the amount into court, shall file in court a copy of the statement of account showing how the amount has been computed. R.S., c. 499, s. 7.

Satisfaction of lien by interested person

8 (1) At any time before the goods are sold any person claiming an interest or right of possession in the goods may pay the warehouseman the amount necessary to satisfy his lien, including the expenses incurred in serving notices and advertisement and preparing for the sale up to the time of the payment.

Possession of goods upon payment

(2) The warehouseman shall deliver the goods to the person making the payment if he is the person entitled to the possession of the goods on payment of the warehouseman's charges thereon and otherwise the warehouseman shall retain possession of the goods according to the terms of the contract of deposit. R.S., c. 499, s. 8.

Method of service of notice

9 Where by this Act any notice in writing is required to be given, the notice shall be given by delivering it to the person to whom it is to be given. R.S., c. 499, s. 9.

Contract unaffected by Act

10 Nothing in this Act contained shall be deemed to affect the terms of the contract between the owner or bailor and the warehouseman. R.S., c. 499, s. 10.

Waiting period before exercise of power of sale

11 Subject to the Warehouse Receipts Act, no sale of goods shall be made by a warehouseman under this Act until three months have expired from the date of the deposit of the goods with him. R.S., c. 499, s. 11.