Home>Levelset Community>Legal Help>Warehouse Lien 7-210

Warehouse Lien 7-210

We have a client that we are storing contents for due to a water damage she had at her property. Once the work was complete, she took a long time to pay us - we did not charge her for any extra storage fees while we waited for payment. Once she did pay, she then claimed she couldn't take her contents back due to more work happening at her house. We explained that we can't hold her contents any longer unless she agrees to pay storage fees. She has refused to pay storage fees and also does not want her contents returned to her until whatever work she is having done is complete. Please assist with what kind of legal document we can present to her in regards to notification of storage fees and our rights to sell/dispose of her contents if no payment is received.

1 reply

Jan 30, 2020

Maryland follows guidance from the Uniform Commercial Code with respect to warehouse liens. Specifically, the ability to claim a lien for stored items and the procedure for enforcement is set forth by MD Coml T. Sec. 7-201, et seq. With respect to "household goods" ("furniture, furnishings, or personal effects used by the depositor in a dwelling") the warehouse's lien is effective against all parties. However, the lien is lost if the goods are delivered back to the depositor, so if payment is due the warehouse may not be able to recover through the lien process if the goods are returned to the depositor. In order to enforce the lien by a sale of the property, there are several specific prerequisites that must be met. These include: "1) All persons known to claim an interest in the goods must be notified. 2) The notification must include an itemized statement of the claim, a description of the goods subject to the lien, a demand for payment within a specified time not less than 10 days after receipt of the notification, and a conspicuous statement that unless the claim is paid within that time the goods will be advertised for sale and sold by auction at a specified time and place. 3) The sale must conform to the terms of the notification. 4) The sale must be held at the nearest suitable place to where the goods are held or stored. 5) After the expiration of the time given in the notification, an advertisement of the sale must be published once a week for 2 weeks consecutively in a newspaper of general circulation where the sale is to be held. The advertisement must include a description of the goods, the name of the person on whose account the goods are being held, and the time and place of the sale. The sale must take place at least 15 days after the first publication. If there is no newspaper of general circulation where the sale is to be held, the advertisement must be posted at least 10 days before the sale in not fewer than six conspicuous places in the neighborhood of the proposed sale." So, in order to begin the process of enforcement of a warehouse lien, the warehouse must first provide specific notice to all parties with an interest in the property to be sold. This does not need to be in any particular form, and does not need to be a certain type of legal document, but it must include the information set out above in part 2. This can be accomplished by a letter which states the required information, and cites the authority of §§ 7-209 and 7-210.

0 people found this helpful

Helpful