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WAREHOUSEMEN'S’ LIEN ACT

WAREHOUSEMEN’S LIEN ACT

Chapter W‑2

Table of Contents

                1       Definitions

                2       Method of giving notices

                3       Declaration of warehousers lien

                4       Charges covered by lien

                5       Where notice of lien given by warehouser

                6       Sale of goods

                7       Unessential irregularities in notices

                8       Disposition of proceeds of sale

                9       Payment before sale of goods


HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Alberta, enacts as follows:

Definitions

1   In this Act,

                                 (a)    “goods” includes personal property of every description that may be deposited with a warehouser as bailee;

                                 (b)    “security interest” means an interest in goods that secures payment or performance of an obligation;

                                 (c)    “warehouser” means a person lawfully engaged in the business of storing goods as a bailee for hire.

RSA 1980 cW‑3 s1;1988 cP‑4.05 s100

Method of giving notices

2   Where by this Act any notice in writing is required to be given, the notice shall be given

                                 (a)    by delivering it to the person to whom it is to be given, or

                                 (b)    by mailing it, postage paid and registered, addressed to the person at the person’s last known address.

RSA 1980 cW‑3 s2

Declaration of warehousers lien

3   Subject to section 5, every warehouser has a lien on goods deposited with the warehouser for storage

                                 (a)    by the owner of the goods or by the authority of the owner, or

                                 (b)    by any person entrusted with the possession of the goods by the owner or by the authority of the owner.

RSA 1980 cW‑3 s3

Charges covered by lien

4   The lien is for the amount of the warehouser’s charges, that is to say,

                                 (a)    for all lawful charges for storage and preservation of the goods,

                                 (b)    for all lawful claims for money advanced, interest, insurance, transportation, labour, weighing, coopering and other expenses in relation to the goods, and

                                 (c)    for all reasonable charges for any notice required to be given under this Act, and for notice and advertisement of sale, and for sale of goods if default is made in satisfying the warehouser’s lien.

RSA 1980 cW‑3 s4

Where notice of lien given by warehouser

5(1)  Where the goods on which a lien exists were deposited not by the owner nor by the owner’s authority but by a person entrusted by the owner or by the owner’s authority with the possession of the goods, the warehouser shall, within 2 months after the date of the deposit, give notice of the lien to

                                 (a)    the owner of the goods, and

                                 (b)    any person who has a security interest in the goods where a financing statement is registered at the date of the deposit with respect to the security interest.

(2)  The notice shall be in writing and shall contain

                                 (a)    a brief description of the goods,

                                 (b)    a statement showing the location of the warehouse where the goods are stored, the date of their deposit with the warehouser and the name of the person by whom they were deposited, and

                                 (c)    a statement that a lien is claimed under this Act by the warehouser in respect of the goods.

(3)  If the warehouser fails to give the notice required by this section, the warehouser’s lien, as against the person to whom the warehouser has failed to give notice, is void from the expiration of the period of 2 months from the date of the deposit of the goods.

RSA 1980 cW‑3 s5;1988 cP‑4.05 s100

Sale of goods

6(1)  In addition to all other remedies provided by law for the enforcement of liens or for the recovery of warehouser’s charges, a warehouser may sell by public auction, in the manner provided in this section, any goods on which the warehouser has a lien for charges that have become due.

(2)  Written notice of the warehouser’s intention to sell shall be given by the warehouser

                                 (a)    to the person liable as debtor for the charges for which the lien exists,

                                 (b)    to the owner of the goods and to any person who has a security interest in the goods where a financing statement is registered at the date of the deposit with respect to the security interest, and

                                 (c)    to any other person known by the warehouser to have or claim an interest in the goods.

(3)  The notice shall contain

                                 (a)    a brief description of the goods,

                                 (b)    a statement showing the location of the warehouse where the goods are stored, the date of their deposit with the warehouser and the name of the person by whom they were deposited,

                                 (c)    an itemized statement of the warehouser’s charges showing the sum due at the time of the notice,

                                 (d)    a demand that the amount of the charges as stated in the notice and any further charges that accrue be paid on or before a day mentioned, not being less than 21 days

                                           (i)    from the delivery of the notice if it is personally delivered, or

                                          (ii)    from the time when the notice should reach its destination according to the due course of mail if it is sent by mail,

                                     and

                                 (e)    a statement that unless the charges are paid within the time mentioned, the goods will be advertised for sale and sold by public auction at a time and place specified in the notice.

(4)  If the warehouser’s charges are not paid on or before the day mentioned in the notice, an advertisement of the sale

                                 (a)    describing the goods to be sold,

                                 (b)    stating the name of the person liable as debtor for the charges for which the lien exists, and

                                 (c)    stating the time and place of the sale,

shall be published at least once a week for 2 consecutive weeks in a newspaper published in Alberta and circulating in the locality where the sale is to be held.

(5)  The sale shall be held not less than 14 days from the date of the first publication of the advertisement.

RSA 1980 cW‑3 s6;1988 cP‑4.05 s100

Unessential irregularities in notices

7   When a notice of lien under section 5 or a notice of intention to sell under section 6 has been given, but those provisions have not been strictly complied with, if the court before whom any question respecting the notice is tried or inquired into considers

                                 (a)    that the provisions have been substantially complied with, or

                                 (b)    that it would be inequitable that the lien or sale be avoided by reason of the non‑compliance,

no objection to the sufficiency of the notice shall in any such case be allowed to prevail so as to release or discharge the goods from the lien or vitiate the sale.

RSA 1980 cW‑3 s7

Disposition of proceeds of sale

8(1)  From the proceeds of the sale the warehouser shall satisfy the warehouser’s lien and shall pay over the surplus, if any, to the person entitled to it.

(2)  The warehouser shall, when paying over the surplus, deliver to the person to whom the warehouser pays it a statement of account showing how the amount has been computed.

(3)  If the surplus is not within 10 days after the sale demanded by the person entitled to it, or if there are different claimants or the rights to the surplus are uncertain, the warehouser shall on the order of a judge pay the surplus into the Court of Queen’s Bench.

(4)  The order may be made ex parte on any terms and conditions as to costs and otherwise that the judge may direct, and may provide to what fund or name the amount of the surplus is to be credited.

(5)  At the time of paying the amount of the surplus into court, the warehouser shall file in court a copy of the statement of account showing how the amount has been computed.

RSA 1980 cW‑3 s8

Payment before sale of goods

9(1)  At any time before the goods are sold, any person claiming an interest or right of possession in the goods may pay the warehouser the amount necessary to satisfy the warehouser’s lien, including the expenses incurred in serving the notices and the advertisement and in preparing for the sale up to the time of the payment.

(2)  The warehouser shall deliver the goods to the person making the payment if that person is the person entitled to the possession of the goods on payment of the warehouser’s charges on them, otherwise the warehouser shall retain possession of the goods according to the terms of the contract of deposit.

RSA 1980 cW‑3 s9