How to get paid for outstanding accounts receivable with customer’s abandoned equipment?

1 month ago

We are dealership and have done repair work on customers’ equipment. They have refused to pay, but we still have the equipment. How do we either file a lien or a notice to auction the equipment to ultimately get paid?

Senior Legal Associate Levelset
139 reviews

Liens against equipment, automobiles, and personal property operate a bit differently than mechanics liens do. So, while I’m well versed in California’s mechanics lien laws, I’m afraid I don’t have much experience with situations like the one you described above.

However, if the equipment is considered a “vehicle,” then it might be possible to place a vehicle lien on that equipment, and the CA Department of Motor Vehicles site has some information on how to do that. Plus, just like with mechanics liens, the mere threat of placing a lien on equipment might be enough to convince a customer to pay what they owe.

Disclaimer: The information presented here is not legal advice and should not be construed as such. Rather, this content is provided for informational purposes. Do not act on this information as if it is advice. Further, this post does not create any attorney-client relationship. If you do need legal advice, seek the help of a local attorney.
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