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Richard - Bizlaw
Richard - Bizlaw, Attorney
Category: Business Law
Satisfied Customers: 10567
Experience:  30 years of corporate, litigation and international law
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We are a commercial lender licensed in California and the

Customer Question

We are a commercial lender licensed in California and the lien holder on a California title to a truck we are financing for our debtor. Approximately 100 days ago our debtor abandoned the truck and left it in a tow yard / repair garage in Los Angeles. We became aware of this about ten days ago when the tow yard/repair garage sent us a “notice of removal & billing” and a bill for $4,050 in storage ($45 per day) plus $2,000 for engine work. Of course, we did not authorize any of these charges and our debtor is refusing to pay them. Our debtor is also in default for nonpayment to us and is refusing to make any more payments on the commercial loan. We need to retrieve the truck as it is valuable collateral but we don’t want to pay these charges to the tow yard/repair garage. What are the requirements for the tow yard/repair shop to assert a garage or mechanics lien against us? What leverage do we have in negotiating with them? Thanks.
Submitted: 6 months ago.
Category: Business Law
Expert:  Richard - Bizlaw replied 6 months ago.

Hello, my name is ***** ***** I will try to help you. Please remember I just report or interpret the law, so the outcome may not be what you hoped for.

The key to any defense is what your debtor authorized. If he did not authorize the work pursuant to a written estimate for the repair work. then they had to give the owner notice of the storage if he did not pick it up within 15 days of completion of the work. You have to find out if shop followed all the procedures under the applicable statutes which are Civil Code 3068 to 3071 and Vehicle Code 10650-10658. Here are the links to the relevant sections. http://www.leginfo.ca.gov/cgi-bin/displaycode?section=civ&group=03001-04000&file=3067-3074 and http://www.leginfo.ca.gov/cgi-bin/displaycode?section=veh&group=10001-11000&file=10650-10658

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