How Do I Get My Vehicles Back After They Are Held Under a Mechanics Lien?
Full Question:
Answer:
The validity of the lien will be a matter of determination for the court, based on all the facts and documents involved. Generally, a person may have a mechanics lien on vehicles for storage or repairs that are unpaid. If possession is retained or the lien recorded, the owner-debtor may contest the validity of the amount claimed to be due by making written demand to foreclose the lien upon the lienholder. If upon receipt of such demand the lienholder fails to institute foreclosure proceedings within ten days where possession has been retained, or within 30 days where possession has been surrendered, the lien is forfeited. A petition for a hearing may then be filed to dispute the debt.
Please see the following GA statute:
40-3-54. (a) All mechanics of every sort shall have a special lien on
any. . . .
(a) All mechanics of every sort shall have a special lien on any
vehicle required to have a certificate of title by Code Section 40-3-20
for work done, or for work done and materials furnished, or for materials
furnished in repairing or servicing such vehicle. Perfection of the lien
by recording shall be as provided in Code Section 40-3-53. The lien may
be asserted by retention of the vehicle, and all contracts for repairs or
service to vehicles shall be deemed to incorporate a right of retention
by the mechanic to protect this lien until it is paid or satisfied
through foreclosure as provided in this Code section. The lien may also
be asserted by surrendering the vehicle, giving credit, and foreclosing
the lien claim in the manner provided in this Code section. If he
surrenders possession of the vehicle to the debtor, the mechanic shall
record his claim of lien as provided in Code Section 40-3-53. Such
special lien shall be superior to all liens except for taxes and such
other liens and security interests of which the mechanic had actual or
constructive notice before the work was done or material furnished. The
validity of the lien against third parties shall be determined in
accordance with this chapter.
(b) If possession is retained or the lien recorded, the owner-debtor
may contest the validity of the amount claimed to be due by making
written demand upon the lienholder. If upon receipt of such demand the
lienholder fails to institute foreclosure proceedings within ten days
where possession has been retained, or within 30 days where possession
has been surrendered, the lien is forfeited.
(c) The lien shall be foreclosed in the following manner:
(1) A person asserting the lien, either for himself or as a guardian,
administrator, executor, or trustee, may move to foreclose it by making
an affidavit to a court of competent jurisdiction showing all the facts
necessary to constitute a lien under this Code section and the amount
claimed to be due;
(2) Upon such affidavit being filed, the clerk or a judge of the
court shall serve notice upon the owner, the recorded lienholders and
security interest holders, and the lessee, if any, of the vehicle of a
right to a hearing to determine if reasonable cause exists to believe
that a valid debt exists, and that such hearing must be petitioned for
within five days after receipt of the notice and that, if no petition
for such hearing is filed within the time allowed, the lien will
conclusively be deemed a valid one and foreclosure thereof allowed;
(3) If a petition for a hearing is filed within the time allowed, the
court shall set a probable cause hearing within ten days of the filing of
the petition. If, at the probable cause hearing, the court determines
that reasonable cause exists to believe that a valid debt exists, the
mechanic shall be given possession of the vehicle or the court shall
obtain possession of the vehicle, as ordered by the court. The
owner-debtor may retain possession of the vehicle by giving bond and
security in the amount determined to be probably due and the costs of the
action;
(4) Within five days of the probable cause hearing, a defendant must
petition the court for a full hearing on the validity of the debt if a
further determination of the validity of the debt is desired. If no
such petition is filed, the lien on the amount determined reasonably
due shall be conclusively deemed a valid one and foreclosure thereof
allowed. If such a petition is filed, the court shall set a full
hearing thereon within 30 days of the filing of the petition. Upon the
filing of such petition by the defendant, neither the prosecuting
mechanic nor the court may sell the vehicle, although possession of the
vehicle may be retained;
(5) If, after a full hearing, the court finds that a valid debt
exists, then the court shall authorize foreclosure upon and sale of the
vehicle subject to the lien to satisfy the debt if the debt is not
otherwise immediately paid;
(6) If the court finds the actions of the mechanic in retaining or
seeking possession of the vehicle were not taken in good faith, the
court, in its discretion, may award damages to the owner, the lessee,
or any person deprived of the rightful use of the vehicle due to the
deprivation of the use of the vehicle;
(7) Any proceeding to foreclose a mechanic's lien on a vehicle must
be instituted within one year from the time the lien is recorded or is
asserted by retention.
