Properly implement a lien over property/vehicle

[DavidWH]

Our payment terms have been effective for many years, however one person has found a way to evade payment... Being the pedantic sod I am, I now wish to prevent future occurrences.

We primarily install vehicle signage, taking a initial deposit before any work commences and the balance is due on completion. On occasions drivers collect the vehicles, and we invoice the company, most pay on receipt.

Situation is, one customer has collected their vehicle, despite chasing the balance are now throwing spurious claims. Even if they were legitimate haven't said anything when previous reminders were sent. They've not made any communication or given chance to rectify these supposed issues.

We have extensive terms, re ownership of goods, but little use in this situation. We've no claim over the vehicle now it has been handed over. However satisfying it would be to remove what was installed.

Going forward, we'll retain possession the vehicle until paid in full.

Seems this is covered by the sale of goods act, perhaps even under 'mechanics lien' any tips on how to properly implement this?

Is it a statutory right? Or best getting our terms updated to make it contractual?

 

[Frank Wessely]

Hi @DavidWH

Given that you will be relying on this to protect your exposure to non payment by customers I recommend that you get a lawyer to update your Ts and Cs. This will ensure that if subsequently challenged by a customer you will be on solid ground.

Thanks.

 

[DavidWH]

Hi @DavidWH

Given that you will be relying on this to protect your exposure to non payment by customers I recommend that you get a lawyer to update your Ts and Cs. This will ensure that if subsequently challenged by a customer you will be on solid ground.

Thanks.

I'll drop our solicitor an email and get our terms reviewed and updated.

Sale of goods act 1979, section V seems to relevant.

Just need to ensure we do everything correctly so it can't be challenged.

 

[eteb3]

Sale of goods act 1979, section V seems to relevant.

I'd be surprised if your business is counted as supplying goods (rather, the goods are ancillary to a service). And anyway if (say) vinyl logos are goods, the statute would seem to give you a right to withhold only the goods themselves - not the van they're stuck to. But maybe when you say "install" signage, it's something really chunky?

There's a good overview on liens taken by providers of services here. TLDR, you may well have a lien anyway, but you're better off writing it into the contract.

 

[JEREMY HAWKE]

You of all people know how difficult it is to remove vehicle signwriting
Do you really want to do that under cover in the darkness of night?

If people get to hear about your signwriting raid it may put them off using you company as it does indicate that disputes are delt with aggressively! albeit that you are owed money

Just take a payment when the vehicle is collected and don't release it until paid

 

[DavidWH]

You of all people know how difficult it is to remove vehicle signwriting
Do you really want to do that under cover in the darkness of night?

If people get to hear about your signwriting raid it may put them off using you company as it does indicate that disputes are delt with aggressively! albeit that you are owed money

Just take a payment when the vehicle is collected and don't release it until paid

Correct, I've not suggested going round removing it, the question was whether there is a statutory right to keep hold of the vehicle (like mechanics can) or if @eteb3 says get it written into the contract.

 

[JEREMY HAWKE]

Correct, I've not suggested going round removing it, the question was whether there is a statutory right to keep hold of the vehicle (like mechanics can) or if @eteb3 says get it written into the contract.

I would say that its no different from a mechanic you fit parts that your company owns until payment is made

 

[eteb3]

the question was whether there is a statutory right to keep hold of the vehicle (like mechanics can)

I would say that its no different from a mechanic you fit parts that your company owns until payment is made

The mechanic has a lien for his work, and not just the parts.

The difficulty is that the mechanic’s lien is at common law, and so whether the law shares your analysis turns on the case law, and possibly the judge on the day.

Sale of Goods Act gives a statutory lien; and then there’s also an equitable lien (from when the courts of equity were separate from the courts of law).

By far the surest is a contractual lien: everyone knows precisely where they stand, without recourse to our learned friends.

One thing to note is that a lien (without more) gives a right only to detain the goods, and not to liquidate them to recover the debt. I imagine the lost income to a van-dependent customer would be enough to tilt the pitch in the OP’s favour, but since he declares himself a pedant (which is admirable), worth pointing that out.

 

[Lucan Unlordly]

You of all people know how difficult it is to remove vehicle signwriting
Do you really want to do that under cover in the darkness of night?

Back in the day when Cadcut lettering was the norm, the recommendation on one sign forum was not to remove but to change a single digit of the phone number?

 

[JEREMY HAWKE]

Back in the day when Cadcut lettering was the norm, the recommendation on one sign forum was not to remove but to change a single digit of the phone number?

Back in the day we had some magnetic signs and some drunk took the signs off and stuck it on a patrolling police van.
They were returned to me and I was asked if possible to have the vehicle properly logoed