Do I owe Boat Storage Fees for someone else using my boat?

[MCharles]

What is the name of your state (only U.S. law)? Michigan

I still owe the bank on boat I own. A couple of years ago, I sold the boat to a friend. I was taking the money he paid me and using it to pay off the loan intending to give him the title once the loan was paid off. He stopped paying me some months ago and now says he can't afford the boat. Thing is, he's had the boat in storage for some time and the storage place won't release the boat until a couple thousand dollars in back rental and other fees are paid. Kind of want my boat back, but I don't think I should be the one who pays the fees. I'm not the one who stored it there.

Advice?

MC

 

[justalayman]

regardless of the true title, you obviously passed constructive title. As such, the guy has the right to encumber the boat.

Since the boat has incurred fees, if you want the boat back, you are going to have to pay the fees the boat has incurred.

If you do not believe you should pay them, you need to deal with the guy that authorized them. It does not mean you can demand the boat without paying the storage fees. They are an innocent party to your squabbles.

 

[xylene]

What is the name of your state (only U.S. law)? Michigan

I still owe the bank on boat I own. A couple of years ago, I sold the boat to a friend. I was taking the money he paid me and using it to pay off the loan intending to give him the title once the loan was paid off. He stopped paying me some months ago and now says he can't afford the boat. Thing is, he's had the boat in storage for some time and the storage place won't release the boat until a couple thousand dollars in back rental and other fees are paid. Kind of want my boat back, but I don't think I should be the one who pays the fees. I'm not the one who stored it there.

Advice?

MC

I suspect your sale of the boat to your friend was not lawful, and you have opened up a whole mess.

How was the boat registered? Insured?

You probably are going to need a lawyer. I suspect that your are in for an expensive set of problems.

 

[Mass_Shyster]

What is the name of your state (only U.S. law)? Michigan

I still owe the bank on boat I own. A couple of years ago, I sold the boat to a friend. I was taking the money he paid me and using it to pay off the loan intending to give him the title once the loan was paid off. He stopped paying me some months ago and now says he can't afford the boat. Thing is, he's had the boat in storage for some time and the storage place won't release the boat until a couple thousand dollars in back rental and other fees are paid. Kind of want my boat back, but I don't think I should be the one who pays the fees. I'm not the one who stored it there.

Advice?

MC

Where was the boat in storage, and how did it get there?
It's possible that this is a maritime lien:

Section 971 of Title 46 of the United States Code
"Any person furnishing repairs, supplies, towage, use of dry dock or marine railway, or other necessaries, to any vessel, whether foreign or domestic, upon the order of the owner of such a vessel, or of a person authorized by the owner, shall have a maritime lien on the vessel, which may be enforced by suit in rem, and it shall not be necessary to allege or prove that credit was given to the vessel."

 

[MCharles]

The guy I was selling the boat to put it in storage. I had no knowledge of this.

Much thanks for everyone's help.

 

[jgombos]

It does not mean you can demand the boat without paying the storage fees. They are an innocent party to your squabbles.

The storage facility is entitled to payment of course, but obviously holding Peter's property hostage on Paul's debt isn't legitimate. The property owner does not have a contract with the storage facility - someone else does.

MCharles should be able to appear at the storage facility with proof of ownership. If the storage facility cannot show proof that they have an unsatisfied contract with MCharles, it's probably his legal right to recover his property. There's no reason for the OP to become a middle-man in a contract that he's not a party to.

Using property as collateral is convenient for storage facilities, because usually the contract is with the property owner. In this case, the storage facility does not have that convenience, and they will have to go after the person they have the contract with.

If the storage facility refuses to release the boat, it would be worth a try to appear at the rental facility with your proof of ownership, and police.

Misplaced/misappropriated/stolen property goes back to the rightful owner, unconditionally AFAIK. This is why pawn shops take a loss on stolen goods if they front money. The storage facility took the risk of not checking ownership of the boat against the contract holder.

 

[jgombos]

What happened?

Did you get the boat back?

 

[justalayman]

The storage facility is entitled to payment of course, but obviously holding Peter's property hostage on Paul's debt isn't legitimate. The property owner does not have a contract with the storage facility - someone else does.

MCharles should be able to appear at the storage facility with proof of ownership. If the storage facility cannot show proof that they have an unsatisfied contract with MCharles, it's probably his legal right to recover his property. There's no reason for the OP to become a middle-man in a contract that he's not a party to.

Using property as collateral is convenient for storage facilities, because usually the contract is with the property owner. In this case, the storage facility does not have that convenience, and they will have to go after the person they have the contract with.

If the storage facility refuses to release the boat, it would be worth a try to appear at the rental facility with your proof of ownership, and police.

Misplaced/misappropriated/stolen property goes back to the rightful owner, unconditionally AFAIK. This is why pawn shops take a loss on stolen goods if they front money. The storage facility took the risk of not checking ownership of the boat against the contract holder.

you apparently missed stevef's post about maritime law. As well the OP sold the boat to the guy that stored it. That one fact alone would mean the guy had the right to encumber the boat. OP allowed it by transferring defacto ownership willingly. It was not stolen. therefor, the storage place has a legitimate lien on the boat and no duty to release it until the lien is paid.