Getting paid: exercising a lien over goods in priority to a PPSA security interest

It is not uncommon for a repairer or the provider of storage facilities who is in possession of goods (a bailee) to be owed costs for work or storage services. Naturally, the bailee will want payment of the outstanding costs before releasing possession of the goods.

If you are a bailee in possession of the goods and are owed costs, do not give up possession without obtaining advice.

In a recent Victorian decision, the Court held that the bailee in possession of the goods was entitled to payment in priority to the registered PPSA security interests over the goods.

The decision in Tasman Logistics

In Tasman Logistics Services Pty Ltd v Seaco Global Australia Pty Ltd [2020] VSC 100: