Acts and Regulations

2014, c.117 - Liens on Goods and Chattels Act

Full text
Current to 16 June 2023
2014, c.117
Liens on Goods and Chattels Act
Deposited December 30, 2014
1The following definitions apply in this Act.
“articles” includes watches, jewellery and all other articles that are usually mended or repaired by a jeweller.(articles)
“jeweller” includes watchmaker.(bijoutier)
“judge” means a judge of The Court of King’s Bench of New Brunswick.(juge)
R.S.1973, c.L-6, s.1; 1979, c.41, s.74; 2023, c.17, s.139
2This Act applies to liens only when there is no provision in any other Act for sale or for determining the rights of the owner and the bailee.
R.S.1973, c.L-6, s.12
Creation of lien
3A person who at the request of the owner expends money, labour or skill on a chattel, or furnishes materials for the alteration or repair of a chattel, has a particular lien on the chattel for the amount of the money expended, materials furnished and his or her proper charges for the labour or skill.
R.S.1973, c.L-6, s.2
Sale of chattels left with jeweller
4(1)Articles deposited with a jeweller to be mended or repaired, if not called for within two years after being deposited, may, if no agreement is made to the contrary, be sold at public auction by the jeweller on four weeks’ public notice of the time and place of sale.
4(2)The place of sale shall be in the parish, city, town or village where the jeweller does business, and the notice shall be posted in three or more public places in the parish, city, town or village and published in two consecutive issues of a newspaper having general circulation in the county, and once in The Royal Gazette.
4(3)The notice shall state the amount of the charges, the name of the person who deposited the articles, if known, the date when they were deposited, and in the case of a watch the name of the maker and the number of the watch.
R.S.1973, c.L-6, s.3; 1983, c.7, s.10; 1987, c.6, s.54
Lien of wharfinger
5A wharfinger has a particular lien for his or her lawful charges, on the goods entrusted to his or her keeping.
R.S.1973, c.L-6, s.4
Lien of gratuitous bailee
6(1)A gratuitous bailee of goods has a particular lien on the goods for his or her reasonable charges for caring for them after the expiration of the time mentioned in a notice given by him or her to the bailor to take possession of the goods.
6(2)A judge may dispense with such notice if the bailor’s address or whereabouts is unknown.
R.S.1973, c.L-6, s.5
Possession essential to lien
7Actual, or constructive, and continued possession of the property is essential to the existence of the lien.
R.S.1973, c.L-6, s.6
Waiver of lien
8The right to a lien under this Act may be waived by an agreement in writing based on lawful consideration, and made between the parties at or after the time the contract out of which the lien arises is made.
R.S.1973, c.L-6, s.7
Detention of property
9(1)A person entitled to a lien on property under this Act may detain the property in his or her possession until the amount of the lien is paid, together with lawful storage charges for the period the property is detained.
9(2)If a bailee has in his or her possession perishable goods that may deteriorate or be destroyed by detention, the bailee may apply without delay to a judge for leave to sell the goods, and the judge may give directions for the sale or make any order he or she considers just.
R.S.1973, c.L-6, s.8
Application for order for sale of goods
10(1)If the amount of the lien and storage charges, if any, are unpaid at the expiration of six months from the time when they are due, or if the goods are not taken by the bailor within the period fixed by the contract, if any, or at or before the expiration of the time specified in the notice referred to in section 6, the lienholder may give notice to the debtor, by registered mail or personal service, specifying a reasonable time and place for payment, the amount owing and the property detained, and stating that in default of payment an application will be made to a judge, at the time and place to be mentioned in the notice, for leave to sell the goods.
10(2)The time fixed for the application shall be not less than 30 days from the date of the mailing or service of the notice.
10(3)On the hearing of the application the judge may make any order he or she considers just.
10(4)Unless the judge otherwise directs, it is not necessary to take out an order for sale, but the judge may note informal directions for the sale on the notice or on any affidavit that may be used.
10(5)If a dispute arises as to the amount due, or if the bailor does not appear, the judge may fix the amount due in a summary way or he or she may direct an action to be brought.
10(6)In all cases the costs of proceedings are in the discretion of the judge and taxed by him or her with or without notice.
10(7)In the event of costs being ordered against an unsuccessful applicant, the person awarded such costs has a right of action against the applicant for the amount of the costs.
R.S.1973, c.L-6, s.9; 1987, c.6, s.54
Disposition of proceeds of sale
11(1)The proceeds of the sale shall be applied first in payment of the costs of the proceedings and the expenses of the sale, and then in payment of the lienholder’s debt, and the balance, if any, shall be paid to the person entitled to it, on application being made by him or her.
11(2)If the application is not made within 30 days, the person conducting the sale shall immediately pay the balance to the Minister of Finance and Treasury Board to be kept by him or her for the owner, and if no claim is made by the owner within a year the amount forms part of the revenue of the Province.
11(3)When remitting to the Minister of Finance and Treasury Board, the person who conducted the sale shall file with the Minister of Finance and Treasury Board a copy of the advertisement under which the sale was made and a detailed statement of the articles sold and prices obtained and of the application of the proceeds of the sale.
11(4)The Minister of Finance and Treasury Board may receive applications for the payment of the balance, verified by such affidavits as he or she may require, on behalf of mortgagees of the goods or of creditors of the owner and may make orders for the payment of all or portions of the money to the mortgagees or creditors, or may refer the matter to a judge.
11(5)The judge may direct interpleader proceedings to be taken when there is more than one claimant, or on the production of such evidence as he or she may consider necessary, make any order he or she considers just.
11(6)All such orders shall provide that creditors and mortgagees, if any, be paid according to their respective priorities.
11(7)In the event of a sale proving abortive by reason of there being no purchaser of the property, or in the event of the proceeds of sale being insufficient to pay the costs of proceedings, the expenses of sale and the debt of the lienholder, the lienholder has a right of action against the owner for the amount of the costs, expenses and debt, or the balances of them remaining unpaid.
R.S.1973, c.L-6, s.10; 2019, c.29, s.79
Offence respecting payment of sale surplus
12A person who refuses or neglects to pay over the surplus of the sale on demand to the owner, or failing any such demand to pay the surplus over to the Minister of Finance and Treasury Board, commits an offence punishable under Part 2 of the Provincial Offences Procedure Act as a category F offence.
R.S.1973, c.L-6, s.11; 1990, c.61, s.71; 2019, c.29, s.79
Law respecting general liens
13Nothing in this Act affects the law respecting general liens.
R.S.1973, c.L-6, s.13
N.B. This Act was proclaimed and came into force February 9, 2015.
N.B. This Act is consolidated to June 16, 2023.