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Can I hold a customers vehicle if they refuse to pay?

Texas

I am an automotive mechanic, I have a customer who doesn't want to pay for services. They also have left a vehicle on my property. When I told them then need to pay the bill before epicking up the vehicle they reported it stolen to the local PD. I was under the impression I am allowed to hold the vehicle untill all debts are paid, however the police that called me told me if I were to continue it would result in criminal charges against me. I argued but then gave up knowing he isn't the judge or jury. My question is can I legally hold the vehicle till the bill is paid. 6824127590

2 replies

Dec 23, 2020

Hi - I'm a bit curious if there are not more facts that need to be disclosed in your situation. However, assuming this is a straight foward as you represent (customer came to you to repair car, gave you possession of car, you performed work, you fixed car, and then customer doesn't want to pay), then this is fairly easy.

Texas Property Code Chapter 70 (https://statutes.capitol.texas.gov/Docs/PR/htm/PR.70.htm) gives you are "workers lien" and you are "entitled to possession of the vehicle, motorboat, vessel, or outboard motor until the amount due is paid ..." There are rules, the most important is the pre-work notice. That says:

"A worker may take possession of an article under Subsection (b) only if the person obligated under the repair contract has signed a notice stating that the article may be subject to repossession under this section. A notice under this subsection must be:

(1) separate from the written repair contract; or

(2) printed on the written repair contract, credit agreement, or other document in type that is boldfaced, capitalized, underlined, or otherwise set out from surrounding written material so as to be conspicuous with a separate signature line. 

So, the question is did you have the customer sign a paper saying that if they don't pay you that you would assert a workers lien and keep the vehcile and possibly sell it to receive payment? If you do, then you are right and they are wrong. If you did not, then you are wrong and must give up possession of hte vehicle as you do not have a valid workers lien. 

Even if the lien is not valid, that doesn't mean you cannot sue for breach of contract. Also, if you didn't give the notice, you should amend your invoices and add it. 

Hope this helps. 

Joel Pace

joel@lpfirm.com.

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