This archived statute consolidation is current to November 10, 1992 and includes changes enacted and in force by that date.

Warehouse Lien Act

[RSBC 1979] CHAPTER 427

Contents
Section
  1.  Interpretation
  2.  Warehouseman's lien
  3.  Notice of lien
  4.  Enforcement of lien by sale of goods
  5.  Substantial compliance
  6.  Disposition of proceeds of sale
  7.  Duty of warehouseman where charges paid before sale
  8.  Manner of giving notices
  9.  Construction of Act

Interpretation

1.  In this Act

"goods" includes personal property of every description that may be deposited with a warehouseman as bailee;

"security interest" means an interest in goods that secures payment or performance of an obligation;

"warehouseman" means a person lawfully engaged in the business of storing goods as a bailee for hire.

Historical Note(s): RS1960-403-2; 1990-11-114.

Warehouseman's lien

2.  (1) Subject to section 3, every warehouseman has a lien on goods deposited with him for storage, whether deposited by the owner of the goods or by his authority, or by any person entrusted with the possession of the goods by the owner or by his authority.

(2) The lien shall be for the amount of the warehouseman's charges, that is to say,

(a) all lawful charges for storage and preservation of the goods;

(b) all lawful claims for money advanced, interest, insurance, transportation, labour, weighing, coopering and other expenses in relation to the goods; and

(c) all reasonable charges for any notice required to be given under this Act, and for notice and advertisement of sale, and for sale of the goods where default is made in satisfying the warehouseman's lien.

Historical Note(s): RS1960-403-3.

Notice of lien

3.  (1) Where the goods on which a lien exists were deposited, not by the owner or by the owner's authority, but by a person entrusted by the owner or by the owner's authority with the possession of the goods, the warehouseman shall, within 2 months after the date of the deposit, give notice of the lien to

(a) the owner of the goods, and

(b) a person who has a security interest in the goods if a financing statement with respect to the security interest is registered at the date of the deposit of the goods.

(2) The notice shall be in writing and contain

(a) a brief description of the goods;

(b) a statement showing the location of the warehouse where the goods are stored, the date of their deposit with the warehouseman, and the name of the person by whom they were deposited; and

(c) a statement that a lien is claimed by the warehouseman in respect of the goods under this Act.

(3) Where the warehouseman fails to give the notice required by this section, his lien, as against the person to whom he has failed to give notice, is void as from the expiration of the period of 2 months from the date on which he has knowledge of the person to whom he has failed to give notice.

Historical Note(s): RS1960-403-4; 1990-11-115.

Enforcement of lien by sale of goods

4.  (1) In addition to all other remedies provided by law for the enforcement of liens or for the recovery of warehouseman's charges, a warehouseman may sell by public auction, in the manner provided in this section, any goods on which he has a lien for charges which have become due.

(2) The warehouseman shall give written notice of his intention to sell

(a) to the person liable as a debtor for the charges for which the lien exists;

(b) to the owner of the goods;

(c) to any person who has a security interest in the goods where a financing statement with respect to the security interest is registered at the date of the deposit of the goods; and

(d) to any other person known by the warehouseman to have or claim an interest in the goods.

(3) The notice shall contain

(a) a brief description of the goods;

(b) a statement showing the location of the warehouse where the goods are stored, the date of their deposit with the warehouseman and the name of the person by whom they were deposited;

(c) an itemized statement of the warehouseman's charges showing the sum due at the time of the notice;

(d) a demand that the amount of the charges as stated in the notice and further charges as may accrue shall be paid on or before a day mentioned, not less than 21 days from the delivery of the notice if it is personally delivered, or from the time when the notice should reach its destination according to the due course of mail if it is sent by mail; and

(e) a statement that unless the charges are paid within the time mentioned the goods will be advertised for sale and sold by public auction at a time and place specified in the notice.

(4) Where the charges are not paid on or before the day mentioned in the notice, an advertisement of the sale, describing the goods to be sold, and stating the name of the person liable as debtor for the charges for which the lien exists and the time and place of the sale, shall be published at least once a week for 2 consecutive weeks in a newspaper published in the Province and circulating in the locality where the sale is to be held. The sale shall be held not less than 14 days from the date of the first publication of the advertisement.

Historical Note(s): RS1960-403-5; 1990-11-116.

Substantial compliance

5.  Where a notice of lien under section 3 or a notice of intention to sell under section 4 has been given, but those sections have not been strictly complied with, if the court before which any question respecting the notice is tried or inquired into considers that those sections have been substantially complied with, or that it would be inequitable that the lien or sale shall be void by reason of the noncompliance, no objection to the sufficiency of the notice shall be allowed to prevail so as to release or discharge the goods from the lien or vitiate the sale.

Historical Note(s): RS1960-403-6.

Disposition of proceeds of sale

6.  From the proceeds of the sale the warehouseman shall satisfy his lien and shall pay over the surplus, if any, to the person entitled to it; and the warehouseman shall, when paying over the surplus, deliver to the person to whom he pays it a statement of account showing how the amount has been computed. If the surplus is not demanded by the person entitled to it within 10 days after the sale, or if there are different claimants or the rights to it are uncertain, the warehouseman shall pay the surplus into the Supreme Court on its order. The order may be made ex parte on the terms and conditions as to costs and otherwise as the court may direct, and may provide to what fund or name the amount shall be credited. The warehouseman at the time of paying the amount into court shall file in court a copy of the statement of account showing how the amount has been computed.

Historical Note(s): RS1960-403-7.

Duty of warehouseman where charges paid before sale

7.  At any time before the goods are sold any person claiming an interest or right of possession in the goods may pay the warehouseman the amount necessary to satisfy his lien, including the expenses incurred in serving notices and advertising and preparing for the sale up to the time of the payment. The warehouseman shall deliver the goods to the person making the payment if he is the person entitled to the possession of the goods on payment of the warehouseman's charges on them, otherwise the warehouseman shall retain possession of the goods according to the terms of the contract of deposit.

Historical Note(s): RS1960-403-8.

Manner of giving notices

8.  Where by this Act any notice in writing is required to be given, the notice shall be given by delivering it to the person to whom it is to be given, or by mailing it in the post office, postage paid and registered, addressed to him at his last known address.

Historical Note(s): RS1960-403-9.

Construction of Act

9.  This Act shall be so interpreted and construed as to effect its general purpose of making uniform the law of those provinces that enact it.

Historical Note(s): RS1960-403-10.