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ARTICLE · 10 JULY 2013

Lenders Beware - "Reasonable" Repair And Storage Charges Add-Up Fast!

The recent case of 417 Truck Center v. Daimler Truck Financial is a classic example of why lenders need be concerned.

CanadaFinance and Banking

Previously our firm has written about abuses under the Repair and Storage Liens Act ("RSLA"). The recent case of 417 Truck Center v. Daimler Truck Financial is a classic example of why lenders need be concerned. The three key points under this case:

  1. an unregistered non-possessory lien for repairs arising under the RSLA can have priority over a registered security interest;
  2. a $30 per day storage charge was deemed reasonable in circumstances where the article stored was not delivered; and
  3. non-possessory liens can be registered at any time, and in certain circumstances, may not need to be registered at all to be enforceable.

The case is a good example of the need for lenders to be proactive and timely in their responses when dealing with repair and storage liens.

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