Can I sell a customer's property to recover my costs?

[Computerdude]

I own a small computer repair business that I run out of my home office. A customer had me replace a broken laptop screen, which I did. After many attempts to contact this person, to return the repaired laptop and get paid for my work, she has not contacted me. It's been almost more than 30 days. Is it within my rights to sell this laptop to recover my costs once it has been over 30 days? If so can I sell it for what it's worth or can I only sell it for what is owed on it? My business is located in Washington state, it is licensed and registered, and is a sole proprietorship.

Thanks for any input.

 

[LdiJ]

I own a small computer repair business that I run out of my home office. A customer had me replace a broken laptop screen, which I did. After many attempts to contact this person, to return the repaired laptop and get paid for my work, she has not contacted me. It's been almost more than 30 days. Is it within my rights to sell this laptop to recover my costs once it has been over 30 days? If so can I sell it for what it's worth or can I only sell it for what is owed on it? My business is located in Washington state, it is licensed and registered, and is a sole proprietorship.

Thanks for any input.

Unless that is part of the contract you have the customer sign then no, you cannot sell it. You can make that part of your contract for the future, and even collect a deposit up front, but you cannot just sell off their item after only 30 days.

 

[latigo]

I own a small computer repair business that I run out of my home office. A customer had me replace a broken laptop screen, which I did. After many attempts to contact this person, to return the repaired laptop and get paid for my work, she has not contacted me. It's been almost more than 30 days. Is it within my rights to sell this laptop to recover my costs once it has been over 30 days? If so can I sell it for what it's worth or can I only sell it for what is owed on it? My business is located in Washington state, it is licensed and registered, and is a sole proprietorship.

Thanks for any input.

Absolutely! You have a statutory lien upon the customer’s laptop for the reasonable value of your labor and material furnished in the course of repairing the item.

“Every person, firm or corporation who shall have performed labor or furnished material in the construction or repair of any chattel at the request of its owner, shall have a lien upon such chattel for such labor performed or material furnished * * * “ Revised Code of Washington 69.08.010.

Also contrary to the untutored initial response from LdiJ the lien is not dependent upon and previous agreement or arrangement with the customer. Nor does it require any prior notice to the customer that you intend to claim a lien if you are not paid for your services.

Your lien rights automatically attached the moment you set to work on the laptop, which then became “collateral” for the amount of your claim.
________________________

If you wish to know how do you go about enforcing or foreclosing your lien in order to get your bill paid, then ask? It can be a very simple procedure under Washington's "Chattel Liens Statutes", laws, which are extremely liberal in this respect.

In fact liberal to the point of almost being loose. For example there is no provision that the owner of collateral receive notice of the sale, nor is there any stated period of time before foreclosure can be commenced.

(No wonder those over paid birds in Olympia legalized pot. They must smoke it in the chambers.)

 

[Computerdude]

Wow that's awesome Latigo!! thank you so much for that. This is the first time I've had to deal with this. I don't want to sell this person's laptop, but I need to be paid for my work too!

Thanks again!

 

[LdiJ]

Wow that's awesome Latigo!! thank you so much for that. This is the first time I've had to deal with this. I don't want to sell this person's laptop, but I need to be paid for my work too!

Thanks again!

Just keep in mind that if you do sell it that fast, and the customer comes back for it that you will be doing your business a huge "word of mouth" disservice. No one that woman knows will ever use your services for computer repair.

 

[latigo]

Just keep in mind that if you do sell it that fast, and the customer comes back for it that you will be doing your business a huge "word of mouth" disservice. No one that woman knows will ever use your services for computer repair.

I see this as nothing but a weak effort of avoiding a retraction of you earlier bogus “legal” advice.

Also, if a repairman is jeopardizing his business good will by exercising his legal right to claim and enforce a statutory lien against a chattel 30 days after his services have gone unpaid, then why is that you own state laws allow an unpaid auto mechanic to commence foreclosure of his statutory lien after 30 days? Read Sections 9-22-6-2 et seq. of the Indiana Code.

Or is business good will more favored in Washington than in Indiana?

With all deserved respect, if your own niche is so unrewarding that you must choose to act the part of someone that you are not, then perhaps you should consider the time and effort it takes to acquire the necessary skills to become that someone.

 

[justalayman]

I see a problem with the law though (and maybe I should read a bit first but I haven't). Based on the law, that means a person etc. who shall have performed labor or furnished material in the construction or repair of any chattel at the request of its owner, can simply sell the merchandise rather than waiting for the customer to return and pick up their merchandise. I can see it now. Jim goes to have his computer repaired at Sams Computers and Mobile Stuff (SCaMS). Sam fixes it. Another person (Willy) walks in looking for a computer. Sam says; boy, have I got the deal for you...



seeing a problem with that?


do you have the right statute Latigo?

Chapter 69.08 RCW Dispositions
FLOUR, WHITE BREAD, AND ROLLS


Sections
69.08.010 Definitions.
[1971 c 27 § 1; 1945 c 192 § 1; Rem. Supp. 1945 § 6294-160.]
Repealed by 1995 c 374 § 24, effective June 30, 1995.

(psst, it's 60.08.010)

Ok, it seemed a bit off. I had to do some research. I'm not seeing the same thing you are latigo. I do see a requirement to file the lien prior to taking any action. I do not see a requirement to provide the property owner with notice and I do not see any time requirements as to how long before the lien can be foreclosed upon though.

RCW 60.08.010
Lien authorized.

Every person, firm or corporation who shall have performed labor or furnished material in the construction or repair of any chattel at the request of its owner, shall have a lien upon such chattel for such labor performed or material furnished, notwithstanding the fact that such chattel be surrendered to the owner thereof: PROVIDED, HOWEVER, That no such lien shall continue, after the delivery of such chattel to its owner, as against the rights of third persons who, prior to the filing of the lien notice as hereinafter provided for, may have acquired the title to such chattel in good faith, for value and without actual notice of the lien.


[1917 c 68 § 1; 1909 c 166 § 1; 1905 c 72 § 1; RRS § 1154.]

RCW 60.08.020
Notice of lien — Contents — Form.

In order to make such lien effectual, the lien claimant shall, within ninety days from the date of delivery of such chattel to the owner, file in the office of the auditor of the county in which such chattel is kept, a lien notice, which notice shall state the name of the claimant, the name of the owner, a description of the chattel upon which the claimant has performed labor or furnished material, the amount for which a lien is claimed, and the date upon which such expenditure of labor or material was completed, which notice shall be signed by the claimant or someone on his or her behalf, and may be in substantially the following form:

RCW 60.08.040
Enforcement of lien — Limitation of action.

The lien herein provided for may be enforced against all persons having a junior or subsequent interest in any such chattel, by judicial procedure or by summary procedure as set forth in chapter 60.10 RCW within nine months after the filing of such lien notice, and if no such action shall be commenced within such time such lien shall cease.

RCW 60.10.030
Notice and sale — Priorities — Sale procedure — Surplus — Deficiency — Obligation of lien holder.

(1) A lien foreclosure authorized by RCW 60.10.020 may be summarily foreclosed by notice and sale as provided herein. The lien holder may sell, or otherwise dispose of the collateral in its then condition or following any commercially reasonable preparation or processing. The proceeds of disposition shall be applied in the order following to

(a) the reasonable expenses of retaking, holding, preparing for sale, selling and the like and, to the extent provided for in the agreement and not prohibited by law, the reasonable attorneys' fees and legal expenses incurred by the secured party;

(b) the satisfaction of indebtedness secured by the lien under which the disposition is made;

(c) the satisfaction of indebtedness secured by any subordinate security interest in the collateral if written notification of demand therefor is received before distribution of the proceeds is completed. If requested by the lien holder, the holder of a subordinate security interest must seasonably furnish reasonable proof of his or her interest, and unless that is done, the lien holder need not comply with that demand.

(2) The lien holder must account to the lien debtor for any surplus, and, unless otherwise agreed, the lien debtor is not liable for any deficiency.

(3) Disposition of the collateral may be by public or private proceedings and may be made by way of one or more contracts. Sale or other disposition may be as a unit or in parcels and at any time and place and on any terms but every aspect of the disposition including the method, manner, time, place and terms must be commercially reasonable which shall be construed as provided in RCW 60.10.070. Unless collateral is perishable or threatens to decline speedily in value or is of a type customarily sold on a recognized market, reasonable notification of the time and place of any public sale or reasonable notification of the time after which any private sale or other intended disposition is to be made shall be sent by the lien holder to the lien debtor, by first-class mail, and registered or certified mail, and except in the case of consumer goods to any other person who has a security interest in the collateral and who has duly filed a financing statement indexed in the name of the lien debtor in this state or who is known by the lien holder to have a security interest in the collateral. The lien holder may buy at any public sale and if the collateral is of a type customarily sold in a recognized market or is of a type which is the subject of widely distributed standard price quotations he or she may buy at private sale. Before accepting any bid or offer for purchase, the lien holder shall inform the bidder or purchaser of the existence of any prior lien or security interest in the collateral, and the identity of the holder of the prior lien or security interest. If the lien holder does not know this information, he or she shall advise the prospective purchaser of that.

 

[LdiJ]

I see this as nothing but a weak effort of avoiding a retraction of you earlier bogus “legal” advice.

Also, if a repairman is jeopardizing his business good will by exercising his legal right to claim and enforce a statutory lien against a chattel 30 days after his services have gone unpaid, then why is that you own state laws allow an unpaid auto mechanic to commence foreclosure of his statutory lien after 30 days? Read Sections 9-22-6-2 et seq. of the Indiana Code.

Or is business good will more favored in Washington than in Indiana?

With all deserved respect, if your own niche is so unrewarding that you must choose to act the part of someone that you are not, then perhaps you should consider the time and effort it takes to acquire the necessary skills to become that someone.

Latigo...this guy is in business to make a living. Selling off goods that have not been picked up after 30 days (particularly if the contracts do not specify this or not giving fair warning to a customer that you are about to do this) is a recipe for disaster for the business. It doesn't matter what the law allows. What matters is what is perceived by the customers or potential customers of the business.

You can view my advice however you like.

 

[justalayman]

Latigo...this guy is in business to make a living. Selling off goods that have not been picked up after 30 days (particularly if the contracts do not specify this or not giving fair warning to a customer that you are about to do this) is a recipe for disaster for the business. It doesn't matter what the law allows. What matters is what is perceived by the customers or potential customers of the business.

You can view my advice however you like.

but here, what matters is the law. They guy apparently is wanting to sell off the merchandise to recoup his expenses so apparently he is not worried about the customer relations issue that may arise from that. After all, that was the OP's actual question:

Can I sell a customer's property to recover my costs?

 

[LdiJ]

but here, what matters is the law. They guy apparently is wanting to sell off the merchandise to recoup his expenses so apparently he is not worried about the customer relations issue that may arise from that. After all, that was the OP's actual question:

No, but its important information for him to realize.