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P. Simmons
P. Simmons, Attorney
Category: Business Law
Satisfied Customers: 34757
Experience:  12+ yrs. of legal experience.
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If I am an RV dealer and a customer left his unit here on consignment

Customer Question

If I am an RV dealer and a customer left his unit here on consignment and I am no longer able to get a hold of him, yet his unit is still here for over two (2) years, can I charge the lien holder a storage fee before I turn it back over to the lien holder. I did not even know that there was a lien holder involved until I had already had the unit here for approximately 18 months.
Submitted: 8 years ago.
Category: Business Law
Expert:  P. Simmons replied 8 years ago.
Thanks for the chance to assist

I can not yet see, what state is this in?
Expert:  P. Simmons replied 8 years ago.
OK, I see now this is TX

Sorry, one more.

You mention you fond out about the lienholder 6 months back..did you tell them that you would charge them storage for this rig?

Customer: replied 8 years ago.
Yes, we told them at that time that there was a storage bill due before anyone could pick up the unit.
Expert:  P. Simmons replied 8 years ago.
Thanks

Well, you can certainly charge them storage for any time AFTER you let them know there was a storage fee associated with keeping the rig on your property.

you mention you told them 6 months back...if you let them know 6 months ago there was a fee associated with future storage...you can demand they pay this amount for the time they stored the vehicle with you. (So, if you told them 6 months ago it was $100/mo. storage, you could charge them $600)


Now, as for storage fees for the time prior to you telling the lien holder of the fee, that will be difficult to enforce. Since you did not have a contract with the lien holder, you will not be able to force them to pay in the same you you can AFTER you had informed the of the storage fee. You can certainly bill them, but if they refuse to pay, you will have a hard time convincing the court to force them to pay. This is true under the legal theory "privity of contract". More info here.

http://en.wikipedia.org/wiki/Privity_of_contract



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P. Simmons and 4 other Business Law Specialists are ready to help you
Customer: replied 8 years ago.
I am sorry, I had to leave on Saturday. I am just now able to look over your information. I may need help with an explanation of your answer. Can we do that online?
Expert:  P. Simmons replied 8 years ago.
Sure

Let me know your questions please

Customer: replied 8 years ago.
So, if I understand, we may charge them for the storage fees at least from the time we advised them that there would be storage fees, but probably not before that. Correct?
Is that under the Privity of contract? Does it have to be a written contract? We only advised them verbally.
Expert:  P. Simmons replied 8 years ago.
Yes, you will have a hard time enforcing a storage fee they did not have notice of or agree to.

You can try, but most likely this would not win in court.

BUT you can demand a few if you gave them notice and they continued to leave the rig on your property. That would be a valid fee.

Verbal is fine, so long as the period of time is less than a year. More than a year you need a written contract.

Customer: replied 8 years ago.
Is there a statute that I can go directly to to find the law that "fits"?
Expert:  P. Simmons replied 8 years ago.
Here is a good overview of TX contract law

http://www.weblocator.com/attorney/tx/law/b02.html

P. Simmons and 4 other Business Law Specialists are ready to help you
Customer: replied 8 years ago.
Thank you very much, you have been very helpful.
Expert:  P. Simmons replied 8 years ago.
Welcome