If there is a repair bill for a car we are repossessing, who is obligated to pay it?
Full Question:
Answer:
Typically, the requirement for prior authorization for repairs is a matter of contract between the vehicle operator and the owner/financing company and the mechanic is allowed to assume that the operator has the authority to contract for repairs. I am unable to determine in which state the repairs were performed. When a person doesn't pay for repair services to a vehicle, the law allows the mechanic to place a lien on the vehicle. Generally, the laws of the state where the repairs were performed will govern the requirements for a mechanics lien. Please see the statutes below to determine applicablility.
The following are CA statutes:
3068.
(a) Every person has a lien dependent upon possession for the
compensation to which the person is legally entitled for making
repairs or performing labor upon, and furnishing supplies or
materials for, and for the storage, repair, or safekeeping of, and
for the rental of parking space for, any vehicle of a type subject to
registration under the Vehicle Code, subject to the limitations set
forth in this chapter. The lien shall be deemed to arise at the time
a written statement of charges for completed work or services is
presented to the registered owner or 15 days after the work or
services are completed, whichever occurs first. Upon completion of
the work or services, the lienholder shall not dismantle, disengage,
remove, or strip from the vehicle the parts used to complete the work
or services.
(b)
(1) Any lien under this section that arises because work or
services have been performed on a vehicle with the consent of the
registered owner shall be extinguished and no lien sale shall be
conducted unless either of the following occurs:
(A) The lienholder applies for an authorization to conduct a lien
sale within 30 days after the lien has arisen.
(B) An action in court is filed within 30 days after the lien has
arisen.
(2) A person whose lien for work or services on a vehicle has been
extinguished shall turn over possession of the vehicle, at the place
where the work or services were performed, to the legal owner or the
lessor upon demand of the legal owner or lessor, and upon tender by
the legal owner or lessor, by cashier's check or in cash, of only the
amount for storage, safekeeping, or parking space rental for the
vehicle to which the person is entitled by subdivision (c).
(3) Any lien under this section that arises because work or
services have been performed on a vehicle with the consent of the
registered owner shall be extinguished, and no lien sale shall be
conducted, if the lienholder, after written demand made by either
personal service or certified mail with return receipt requested by
the legal owner or the lessor to inspect the vehicle, fails to permit
that inspection by the legal owner or lessor, or his or her agent,
within a period of time not sooner than 24 hours nor later than 72
hours after the receipt of that written demand, during the normal
business hours of the lienholder.
(4) Any lien under this section that arises because work or
services have been performed on a vehicle with the consent of the
registered owner shall be extinguished, and no lien sale shall be
conducted, if the lienholder, after written demand made by either
personal service or certified mail with return receipt requested by
the legal owner or the lessor to receive a written copy of the work
order or invoice reflecting the services or repairs performed on the
vehicle and the authorization from the registered owner requesting
the lienholder to perform the services or repairs, fails to provide
that copy to the legal owner or lessor, or his or her agent, within
10 days after the receipt of that written demand.
(c) The lienholder shall not charge the legal owner or lessor any
amount for release of the vehicle in excess of the amounts authorized
by this subdivision.
(1) That portion of the lien in excess of one thousand five
hundred dollars ($1,500) for any work or services, or that amount,
subject to the limitations contained in Section 10652.5 of the
Vehicle Code, in excess of one thousand twenty-five dollars ($1,025)
for any storage, safekeeping, or rental of parking space or, if an
application for an authorization to conduct a lien sale has been
filed pursuant to Section 3071 within 30 days after the commencement
of the storage or safekeeping, in excess of one thousand two hundred
fifty dollars ($1,250) for any storage or safekeeping, rendered or
performed at the request of any person other than the legal owner or
lessor, is invalid, unless prior to commencing any work, services,
storage, safekeeping, or rental of parking space, the person claiming
the lien gives actual notice in writing either by personal service
or by registered letter addressed to the legal owner named in the
registration certificate, and the written consent of that legal owner
is obtained before any work, services, storage, safekeeping, or
rental of parking space are performed.
(2) Subject to the limitations contained in Section 10652.5 of the
Vehicle Code, if any portion of a lien includes charges for the
care, storage, or safekeeping of, or for the rental of parking space
for, a vehicle for a period in excess of 60 days, the portion of the
lien that accrued after the expiration of that period is invalid
unless Sections 10650 and 10652 of the Vehicle Code have been
complied with by the holder of the lien.
(3) The charge for the care, storage, or safekeeping of a vehicle
which may be charged to the legal owner or lessor shall not exceed
that for one day of storage if, 24 hours or less after the vehicle is
placed in storage, a request is made for the release of the vehicle.
If the request is made more than 24 hours after the vehicle is
placed in storage, charges may be imposed on a full, calendar-day
basis for each day, or part thereof, that the vehicle is in storage.
(d) In any action brought by or on behalf of the legal owner or
lessor to recover a vehicle alleged to be wrongfully withheld by the
person claiming a lien pursuant to this section, the prevailing party
shall be entitled to reasonable attorney's fees and costs, not to
exceed one thousand seven hundred fifty dollars ($1,750).
3071.
(a) A lienholder shall apply to the department for the
issuance of an authorization to conduct a lien sale pursuant to this
section for any vehicle with a value determined to be over four
thousand dollars ($4,000). A filing fee shall be charged by the
department and may be recovered by the lienholder if a lien sale is
conducted or if the vehicle is redeemed. The application shall be
executed under penalty of perjury and shall include all of the
following information:
(1) A description of the vehicle, including make, year model,
identification number, license number, and state of registration.
For motorcycles, the engine number also shall be included. If the
vehicle identification number is not available, the department shall
request an inspection of the vehicle by a peace officer, licensed
vehicle verifier, or departmental employee before accepting the
application.
(2) The names and addresses of the registered and legal owners of
the vehicle, if ascertainable from the registration certificates
within the vehicle, and the name and address of any person whom the
lienholder knows, or reasonably should know, claims an interest in
the vehicle.
(3) A statement of the amount of the lien and the facts that give
rise to the lien.
(b) Upon receipt of an application made pursuant to subdivision
(a), the department shall do all of the following:
(1) Notify the vehicle registry agency of a foreign state of the
pending lien sale, if the vehicle bears indicia of registration in
that state.
(2) By certified mail, send a notice, a copy of the application,
and a return envelope preaddressed to the department to the
registered and legal owners at their addresses of record with the
department, and to any other person whose name and address is listed
in the application.
(c) The notice required pursuant to subdivision (b) shall include
all of the following statements and information:
(1) An application has been made with the department for
authorization to conduct a lien sale.
(2) The person has a right to a hearing in court.
(3) If a hearing in court is desired, a Declaration of Opposition
form, signed under penalty of perjury, shall be signed and returned
to the department within 10 days of the date that the notice required
pursuant to subdivision (b) was mailed.
(4) If the Declaration of Opposition form is signed and returned
to the department, the lienholder shall be allowed to sell the
vehicle only if he or she obtains a court judgment, if he or she
obtains a subsequent release from the declarant or if the declarant,
cannot be served as described in subdivision (e).
(5) If a court action is filed, the declarant shall be notified of
the lawsuit at the address shown on the Declaration of Opposition
form and may appear to contest the claim.
(6) The person may be liable for court costs if a judgment is
entered in favor of the lienholder.
(d) If the department receives the Declaration of Opposition form
in the time specified, the department shall notify the lienholder
within 16 days of the receipt of the form that a lien sale shall not
be conducted unless the lienholder files an action in court within 30
days of the department's notice under this subdivision. A lien sale
of the vehicle shall not be conducted unless judgment is
subsequently entered in favor of the lienholder or the declarant
subsequently releases his or her interest in the vehicle. If a money
judgment is entered in favor of the lienholder and the judgment is
not paid within five days after becoming final, then the judgment may
be enforced by lien sale proceedings conducted pursuant to
subdivision (f).
(e) Service on the declarant in person or by certified mail with
return receipt requested, signed by the declarant or an authorized
agent of the declarant at the address shown on the Declaration of
Opposition form, shall be effective for the serving of process. If
the lienholder has served the declarant by certified mail at the
address shown on the Declaration of Opposition form and the mail has
been returned unclaimed, or if the lienholder has attempted to effect
service on the declarant in person with a marshal, sheriff, or
licensed process server and the marshal, sheriff, or licensed process
server has been unable to effect service on the declarant, the
lienholder may proceed with the judicial proceeding or proceed with
the lien sale without a judicial proceeding. The lienholder shall
notify the department of the inability to effect service on the
declarant and shall provide the department with a copy of the
documents with which service on the declarant was attempted. Upon
receipt of the notification of unsuccessful service, the department
shall send authorization of the sale to the lienholder and send
notification of the authorization to the declarant.
(f) Upon receipt of authorization to conduct the lien sale from
the department, the lienholder shall immediately do all of the
following:
(1) At least five days, but not more than 20 days, prior to the
lien sale, not counting the day of the sale, give notice of the sale
by advertising once in a newspaper of general circulation published
in the county in which the vehicle is located. If there is no
newspaper published in the county, notice shall be given by posting a
Notice of Sale form in three of the most public places in the town
in which the vehicle is located and at the place where the vehicle is
to be sold for 10 consecutive days prior to and including the day of
the sale.
(2) Send a Notice of Pending Lien Sale form 20 days prior to the
sale but not counting the day of sale, by certified mail with return
receipt requested, to each of the following:
(A) The registered and legal owners of the vehicle, if registered
in this state.
(B) All persons known to have an interest in the vehicle.
(C) The department.
(g) All notices required by this section, including the notice
forms prescribed by the department, shall specify the make, year
model, vehicle identification number, license number, and state of
registration, if available, and the specific date, exact time, and
place of sale. For motorcycles, the engine number shall also be
included.
(h) Following the sale of a vehicle, the person who conducts the
sale shall do both of the following:
(1) Remove and destroy the vehicle's license plates.
(2) Within five days of the sale, submit a completed "Notice of
Release of Liability" form to the Department of Motor Vehicles.
(i) The Department of Motor Vehicles shall retain all submitted
forms described in paragraph (2) of subdivision (h) for two years.
(j) No lien sale shall be undertaken pursuant to this section
unless the vehicle has been available for inspection at a location
easily accessible to the public for at least one hour before the sale
and is at the place of sale at the time and date specified on the
notice of sale. Sealed bids shall not be accepted. The lienholder
shall conduct the sale in a commercially reasonable manner.
(k) Within 10 days after the sale of any vehicle pursuant to this
section, the legal or registered owner may redeem the vehicle upon
the payment of the amount of the sale, all costs and expenses of the
sale, together with interest on the sum at the rate of 12 percent per
annum from the due date thereof or the date when that sum was
advanced until the repayment. If the vehicle is not redeemed, all
lien sale documents required by the department shall then be
completed and delivered to the buyer.
(l) Any lien sale pursuant to this section shall be void if the
lienholder does not comply with this chapter. Any lien for fees or
storage charges for parking and storage of a motor vehicle shall be
subject to Section 10652.5 of the Vehicle Code.
10650.
(a) Every operator of a towing service and every keeper of a
garage or trailer park shall keep a written record of every vehicle
of a type subject to registration under this code stored for a period
longer than 12 hours.
(b) The record shall contain the name and address of the person
storing the vehicle or requesting the towing, the names of the owner
and driver of the vehicle, if ascertainable, and a brief description
of the vehicle including the name or make, the motor or other number
of the vehicle, the nature of any damage to the vehicle, and the
license number and registration number shown by the license plates or
registration card, if either of the latter is attached to the
vehicle in a clearly discernible place.
(c) All records shall be kept for one year from the commencement
of storage and shall be open to inspection by any peace officer.
(d) Upon termination of the storage, a statement shall be added to
the record as to the disposition of the vehicle, including the name
and address of the person to whom the vehicle was released and the
date of such release.
10652.
Whenever any vehicle of a type subject to registration under
this code has been stored in a garage, repair shop, parking lot, or
trailer park for 30 days, the keeper shall report such fact to the
Department of Justice by receipted mail, which shall at once notify
the legal owner as of record. This section shall not apply to any
vehicle stored by a peace officer or employee designated in Section
22651 pursuant to Article 3 (commencing with Section 22850) of
Chapter 10 of Division 11.
10652.5.
(a) Whenever the name and address of the legal owner of a
motor vehicle is known, or may be ascertained from the registration
records in the vehicle or from the records of the Department of Motor
Vehicles, no fee or service charge may be imposed upon the legal
owner for the parking and storage of the motor vehicle except as
follows:
(1) The first 15 days of possession and (2) following that
15-day period, the period commencing three days after written notice
is sent by the person in possession to the legal owner by certified
mail, return receipt requested, and continuing for a period not to
exceed any applicable time limit set forth in Section 3068 or 3068.1
of the Civil Code.
(b) The costs of notifying the legal owner may be charged as part
of the storage fee when the motor vehicle has been stored for an
indefinite period of time and notice is given no sooner than the
third day of possession. This subdivision also applies if the legal
owner refuses to claim possession of the motor vehicle.
(c) In any action brought by, or on behalf of, a legal owner of a
motor vehicle to which subdivision (a) applies, to recover a motor
vehicle alleged to be withheld by the person in possession of the
motor vehicle by demanding storage fees or charges for any number of
days in excess of that permitted pursuant to subdivision (a), the
prevailing party shall be entitled to reasonable attorney's fees, not
to exceed one thousand seven hundred fifty dollars ($1,750). The
recovery of those fees is in addition to any other right, remedy, or
cause of action of that party.
(d) This section is not applicable to any motor vehicle stored by
a levying officer acting under the authority of judicial process.
The following are FL statutes:
713.585
Enforcement of lien by sale of motor vehicle.--A person claiming a lien under s. 713.58 for performing labor or services on a motor vehicle may enforce such lien by sale of the vehicle in accordance with the following procedures:
(1) The lienor must give notice, by certified mail, return receipt requested, within 15 business days, excluding Saturday and Sunday, from the beginning date of the assessment of storage charges on said motor vehicle, to the registered owner of the vehicle, to the customer as indicated on the order for repair, and to all other persons claiming an interest in or lien thereon, as disclosed by the records of the Department of Highway Safety and Motor Vehicles or of a corresponding agency of any other state in which the vehicle appears registered. Such notice must contain:
(a) A description of the vehicle (year, make, vehicle identification number) and its location.
(b) The name and address of the owner of the vehicle, the customer as indicated on the order for repair, and any person claiming an interest in or lien thereon.
(c) The name, address, and telephone number of the lienor.
(d) Notice that the lienor claims a lien on the vehicle for labor and services performed and storage charges, if any, and the cash sum which, if paid to the lienor, would be sufficient to redeem the vehicle from the lien claimed by the lienor.
(e) Notice that the lien claimed by the lienor is subject to enforcement pursuant to this section and that the vehicle may be sold to satisfy the lien.
(f) If known, the date, time, and location of any proposed or scheduled sale of the vehicle. No vehicle may be sold earlier than 60 days after completion of the repair work.
(g) Notice that the owner of the vehicle or any person claiming an interest in or lien thereon has a right to a hearing at any time prior to the scheduled date of sale by filing a demand for hearing with the clerk of the circuit court in the county in which the vehicle is held and mailing copies of the demand for hearing to all other owners and lienors as reflected on the notice.
(h) Notice that the owner of the vehicle has a right to recover possession of the vehicle without instituting judicial proceedings by posting bond in accordance with the provisions of s. 559.917.
(i) Notice that any proceeds from the sale of the vehicle remaining after payment of the amount claimed to be due and owing to the lienor will be deposited with the clerk of the circuit court for disposition upon court order pursuant to subsection (8).
(2) If attempts to locate the owner or lienholder are unsuccessful, the lienor must notify the local law enforcement agency in writing by certified mail or acknowledged hand delivery that the lienor has been unable to locate the owner or lienholder, that a physical search of the vehicle has disclosed no ownership information, and that a good faith effort has been made. A description of the motor vehicle which includes the year, make, and identification number must be given on the notice. This notification must take place within 15 business days, excluding Saturday and Sunday, from the beginning date of the assessment of storage charges on said motor vehicle. For purposes of this paragraph, the term "good faith effort" means that the following checks have been performed by the company to establish the prior state of registration and title:
(a) A check of vehicle for any type of tag, tag record, temporary tag, or regular tag;
(b) A check of vehicle for inspection sticker or other stickers and decals that could indicate the state of possible registration; and
(c) A check of the interior of the vehicle for any papers that could be in the glove box, trunk, or other areas for the state of registration.
(3) If the date of the sale was not included in the notice required in subsection (1), notice of the sale must be sent by certified mail, return receipt requested, not less than 15 days before the date of sale, to the customer as indicated on the order for repair, and to all other persons claiming an interest in or lien on the motor vehicle, as disclosed by the records of the Department of Highway Safety and Motor Vehicles or of a corresponding agency of any other state in which the vehicle appears to have been registered. After diligent search and inquiry, if the name and address of the registered owner or the owner of the recorded lien cannot be ascertained, the requirements for this notice may be disregarded.
(4) The lienor, at least 15 days before the proposed or scheduled date of sale of the vehicle, shall publish the notice required by this section once in a newspaper circulated in the county where the vehicle is held. A certificate of compliance with the notification provisions of this section, verified by the lienor, together with a copy of the notice and return receipt for mailing of the notice required by this section, and proof of publication, must be duly and expeditiously filed with the clerk of the circuit court in the county where the vehicle is held. The lienor, at the time of filing the certificate of compliance, must pay to the clerk of that court a service charge of $10 for indexing and recording the certificate.
(5) At any time prior to the proposed or scheduled date of sale of a vehicle, the owner of the vehicle, or any person claiming an interest in the vehicle or a lien thereon, may file a demand for hearing with the clerk of the circuit court in the county in which the vehicle is held to determine whether the vehicle has been wrongfully taken or withheld from her or him. Any person who files a demand for hearing shall mail copies of the demand to all other owners and lienors as reflected on the notice required in subsection (1). Upon the filing of a demand for hearing, a hearing shall be held prior to the proposed or scheduled date of sale of the vehicle.
(6) In the event a lienor institutes a judicial proceeding to enforce a lien, no filing fee shall be required at the time of filing, but the court shall require the lienor to pay the filing fee unless the lienor shall prevail in the action.
(7) At the hearing on the complaint, the court shall forthwith issue its order determining:
(a) Whether the vehicle is subject to a valid lien by the lienor and the amount thereof;
(b) The priority of the lien of the lienor as against any existing security interest in the vehicle;
(c) The distribution of any proceeds of the sale by the clerk of the circuit court;
(d) The award of reasonable attorney's fees and costs to the prevailing party; and
(e) The reasonableness of storage charges.
(8) A vehicle subject to lien enforcement pursuant to this section must be sold by the lienor at public sale. Immediately upon the sale of the vehicle and payment in cash of the purchase price, the lienor shall deposit with the clerk of the circuit court the proceeds of the sale less the amount claimed by the lienor for work done and storage, if any, and all reasonable costs and expenses incurred in conducting the sale, including any attorney's fees and costs ordered by the court. Simultaneously with depositing the proceeds of sale remaining after payment to the lienor, the lienor shall file with the clerk a verified report of the sale stating a description of the vehicle sold, including the vehicle identification number; the name and address of the purchaser; the date of the sale; and the selling price. The report shall also itemize the amount retained by the lienor pursuant to this section and shall indicate whether a hearing was demanded and held. All proceeds held by the court shall be held for the benefit of the owner of the vehicle or any lienholder whose lien is discharged by the sale and shall be disbursed only upon order of the court. Unless a proceeding is initiated to validate a claim to such proceeds within 1 year and a day from the date of the sale, the proceeds shall be deemed abandoned property and disposition thereof shall be governed by s. 705.103. The clerk shall receive 5 percent of the proceeds deposited with her or him, not to exceed $25, for her or his services under this section.
(9) A copy of the certificate of compliance and the report of sale, certified by the clerk of the court, shall constitute satisfactory proof for application to the Department of Highway Safety and Motor Vehicles for transfer of title, together with any other proof required by any rules and regulations of the department.
(10) Nothing contained in this section shall be construed as affecting an owner's right to redeem her or his vehicle from the lien at any time prior to sale by paying the amount claimed by the lienor for work done and assessed storage charges, plus any costs incurred by the repair shop for utilizing enforcement procedures under this section.
(11) Nothing in this section shall operate in derogation of the rights and remedies established by s. 559.917.
(12) When a vehicle is sold by a lienor in accordance with this law, a purchaser for value takes title to the vehicle free and clear of all claims, liens, and encumbrances whatsoever, unless otherwise provided by court order.
(13) A failure to make good faith efforts as defined in subsection (2) precludes the imposition of any storage charges against the vehicle. If a lienor fails to provide notice to any person claiming a lien on a vehicle under subsection (1) within 15 business days after the assessment of storage charges have begun, then the lienor is precluded from charging for more than 15 days of storage, but failure to provide timely notice does not affect charges made for repairs, adjustments, or modifications to the vehicle or the priority of liens on the vehicle.
559.917
Bond to release possessory lien claimed by motor vehicle repair shop.--
(1)
(a) Any customer may obtain the release of her or his motor vehicle from any lien claimed under part II of chapter 713 by a motor vehicle repair shop for repair work performed under a written repair estimate by filing with the clerk of the court in the circuit in which the disputed transaction occurred a cash or surety bond, payable to the person claiming the lien and conditioned for the payment of any judgment which may be entered on the lien. The bond shall be in the amount stated on the invoice required by s. 559.911, plus accrued storage charges, if any, less any amount paid to the motor vehicle repair shop as indicated on the invoice. The customer shall not be required to institute judicial proceedings in order to post the bond in the registry of the court, nor shall the customer be required to use a particular form for posting the bond, unless the clerk shall provide such form to the customer for filing. Upon the posting of such bond, the clerk of the court shall automatically issue a certificate notifying the lienor of the posting of the bond and directing the lienor to release the customer's motor vehicle.
(b) The lienor shall have 60 days to file suit to recover the bond. The prevailing party in that action may be entitled to damages plus court costs and reasonable attorney's fees. If the lienor fails to file suit within 60 days after the posting of such bond, the bond shall be discharged.
(2) The failure of a lienor to release or return to the customer the motor vehicle upon which any lien is claimed, upon receiving a copy of a certificate giving notice of the posting of the bond and directing release of the motor vehicle, shall subject the lienor to judicial proceedings which may be brought by the customer to compel compliance with the certificate. Whenever a customer brings an action to compel compliance with the certificate, the customer need only establish that:
(a) Bond in the amount of the invoice, plus accrued storage charges, if any, less any amount paid to the motor vehicle repair shop as indicated on the invoice, was posted;
(b) A certificate was issued pursuant to this section;
(c) The motor vehicle repair shop, or any employee or agent thereof who is authorized to release the motor vehicle, received a copy of a certificate issued pursuant to this section; and
(d) The motor vehicle repair shop or employee authorized to release the motor vehicle failed to release the motor vehicle.The customer, upon a judgment in her or his favor in an action brought under this subsection, may be entitled to damages plus court costs and reasonable attorney's fees sustained by her or him by reason of such wrongful detention or retention. Upon a judgment in favor of the motor vehicle repair shop, the shop may be entitled to reasonable attorney's fees.
(3) Any motor vehicle repair shop which, or any employee or agent thereof who is authorized to release the motor vehicle who, upon receiving a copy of a certificate giving notice of the posting of the bond in the required amount and directing release of the motor vehicle, fails to release or return the property to the customer pursuant to this section is guilty of a misdemeanor of the second degree, punishable as provided in s. 775.082 or s. 775.083.
(4) Any customer who stops payment on a credit card charge or a check drawn in favor of a motor vehicle repair shop on account of an invoice or who fails to post a cash or surety bond pursuant to this section shall be prohibited from any recourse under this section with respect to the motor vehicle repair shop.
As previously stated, the requirement for prior authorization from the vehicle’s finance company/owner for repairs is typically a matter of contract between the vehicle operator and the owner/financing company and the mechanic is allowed to assume that the operator has the authority to contract for repairs. When a person doesn't pay for repair services to a vehicle, the law allows the mechanic to place a lien on the vehicle.
In Florida, in order to enforce a lien by selling the car, the mechanic/garage claiming the lien must provide notice to anyone claiming an interest in the car within 15 business days from the beginning date of the assessment of storage charges on the vehicle. The car may be redeemed by the owner by paying the redemption amount in the lienor’s notice. The owner of the vehicle also has a right to recover possession of the vehicle without instituting judicial proceedings by posting a bond with the court.
The court will hold a hearing and determine whether the vehicle is subject to a valid lien by the lienor and the amount thereof, as well as the priority of the lien of the lienor as against any existing security interest in the vehicle.
I suggest having a local attorney review the circumstances and documents involved to determine if the notice requirements in the statutes below were complied with and whether you have a security interest that takes priority over a mechanic’s lien.