Colorado Creditor Debt Collection - replevin, liens & lien foreclosure - repossession, replevin, sale & deficiency balance, lien for labor, garagemen's lien, tailor's lien, laundry lien, dry cleaning shops lien, self service storage facilities lien, materialmen's liens, mechanic's liens, agistor's lien, lien foreclosure.

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        This web page provides information regarding replevin (property recovery) and liens - including lien foreclosure.

CRS 38-20-106. Lien for labor. 
        Any mechanic or other person who makes, alters, repairs, or bestows labor upon any article of personal property, at the request of the owner of such personal property or his agent shall have a lien upon such property for the amount due for such labor done or material furnished and for all costs incurred in enforcing such lien.

        This frequently applies to auto mechanics and tailors.  The garageman who repaired the motor vehicle or the tailor who made or repaired the garment may hold possession of the property.

        A mechanic who, under contract, bestows labor upon a chattel for its improvement is entitled to retain the possession thereof until he has been paid for his services, but performance of the contract is essential to the creation of the lien and the existence of the right of improvement.  Hillsburg v. Harrison, 2 Colo. App. 298, 30 P. 355 (1892).  The mechanic's performance of the contract is essential to creation of lien. 
        The lien provided in this section imports simply the right to hold and detain the property.  Wenz v. McBride, 20 Colo. 195, 36 P. 1105 (1894).  However, an employee of the labor provider is not invested with a possessory lien.  Id.
        A tailor, to whom material was furnished to be made into garments, is a mechanic entitled to hold possession of the garments until the price of labor which he has put on them for their betterment is paid by the employer if he fulfilled his contract.  Hillsburg v. Harrison, supra.
        One claiming a lien upon a wagon for repairs must make it appear from an averment of facts that it was delivered to him for the purpose of such repairs.  Rohrer v. Ross, 53 Colo. 328, 125 P. 489 (1912).  Proof of delivery for repairs is required for a lien claim. 

CRS 38-20-106.5. Motor vehicle repair garages - restoration of liens. (paraphrased)

        If the garageman released the vehicle upon payment by check which is returned NSF - insufficent funds or otherwise dishonored, and if the maker, issuer, or drawer fails, within twelve days after receiving notice from the motor vehicle repair garage of nonpayment or dishonor, to pay the check, draft, or order, the garageman is entitled to restoration of the lien.

        In the event such motor vehicle repair garage has released the motor vehicle upon an open account, the motor vehicle repair garage shall be entitled to restoration of the lien if the total amount as agreed upon by the parties is not paid when due as agreed upon by the parties and if the debtor fails, within twelve days after receiving notice from the motor vehicle repair garage of nonpayment, to pay the amount due. 

        Restoration of such lien shall entitle the motor vehicle repair garage to regain possession of the motor vehicle. In regaining possession, the motor vehicle repair garage may proceed without judicial process if this can be done without breach of the peace or may proceed by action. (repossession)

        Notice in writing shall be conclusively presumed to have been given when deposited by registered or certified mail, return receipt requested and postage prepaid, in the United States mail and addressed to such person at his address as it appears on the invoice or such check, draft, or order or, in the case of an open account, as it appears on the account records of the motor vehicle repair garage. Any notice regarding an open account may only be given subsequent to nonpayment.

        If any charges for which a lien is given have not been paid within thirty (30) days after the charges become due and payable, the mechanic, innkeeper, agistor, or other person to whom such lien is given may file a foreclosure action in the county or district court.  In the event that the lienholder does not foreclose the lien by commencing a judicial action within sixty days and if, under CRS 38-20-106, within ninety days after charges become due and payable, the lien shall terminate.  Such period of limitation may be extended by agreement between the parties for an additional period not to exceed thirty days.  If the contract between the owner and the lienholder provides for installment or continuing payments, installments or continuing payments shall be deemed to be due after default of any installment or payment or at the time the final installment or payment is due and payable at the option of the lienholder. CRS 38-20-107(1) 

        NON-COMPLIANCE PENALTY.  If the lienholder sells or otherwise disposes of the property of the owner without substantially complying with this article, the owner is entitled to recover from the lienholder the value of the property, but in no event less than one hundred dollars, and reasonable attorney's fees.  CRS 38-20-107(2)

        Once his lien has terminated, lienholder has no further right to withhold possession of the lien property, and the owner of property subject to the lien is entitled to recover for any damages incurred from unlawful retention. White v. Jackson, 41 Colo. App. 433, 586 P.2d 243 (1978).

        IMPORTANT.  At the risk of being redundant, garagemen must timely foreclose the lien or lose possessory right.  Retention of possession in excess of the statutory time without lien foreclosure may subject the garageman to monetary damages.  A prudent businessmen does not invite a damage award.  At the expiration of the lien period, if foreclosure has not been commenced, the appropriate remedy is to release the vehicle, then file a lawsuit for money damages.  Refer to the Debt Collection - Litigation page.

        CRS 38-20-108 sets forth the elements of the case which must be established to foreclose a lien.  Expedited hearing is provided by statute.  

        If the lien is foreclosed, the property would be sold in a commercially reasonable fashion, and lawsuit for deficiency balance (if any) is then commenced against the debtor.  If the property sells for an amount in excess of the debt, the balance would be returned to the debtor.  CRS 38-20-109. sets forth the procedure for notice and sale upon judgment.  CRS 38-20-113 expressly provides foreclosure and sale shall take away the right of action of the party to whom such lien is given to satisfy his judgment pursuant to law and the Colorado rules of civil procedure for his charges or for any residue thereof after sale of such property. (deficiency balance)

        Refer to CRS 38-20-116 regarding definition of abandoned property and notice / sale provisions.

        Where relevant, I utilize the services of independent professionals.  Rates of independent providers of professional services change periodically and billings are not controlled by counsel.

        If retained by counsel as an agent of the attorney, such independent service providers are bound by the attorney-client privilege.  If retained privately by the client, no such agency or confidentiality exists.

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