Warehouse Liens – Stopping the Sale of Your Property Before it Happens

If you’ve ever entrusted your property to a warehouse or storage company, you know it’s a bargained-for exchange: you pay storage fees, and in return, the warehouse stores and protects your valuable property. But what happens if this agreement goes south, or you fall behind on your payments?

Well, in that case, the warehouse may have a lien against you on the goods covered by the warehouse’s receipt of storage agreement. You can read more about that and the effects of Florida Statutes section 677.209 here.

In some cases, when an account goes into default, storage facilities may refuse to release the property even after the unpaid balance is eventually paid. Property owners often feel powerless to prevent the sale, believing that their only option is to file a lawsuit to recover the value of their lost property. While this can help consumers recover the value after a lien sale, it leaves those wanting to save their property with seemingly no other options.

At Ayala Law, we believe that no one should be forced to watch their property get sold while they are willing to pay off the existing balance. Thankfully, Florida law agrees. 

Florida Statutes section 677.210 provides that “before any sale pursuant to this section any person claiming a right in the goods may pay the amount necessary to satisfy the lien and the reasonable expenses incurred in complying with this section. In that event, the goods may not be sold but shall be retained by the warehouse [. . .].” § 677.210(3), Fla. Stat. 

So, what should you do if you believe that a warehouse has imposed a lien on your property and is attempting to sell your property? 

Step 1: Contact a business litigation attorney. At Ayala Law, we pride ourselves on representing our clients and achieving efficient resolutions in warehouse disputes, like the ones discussed above. 

Step 2: Contact the warehouse or storage facility. Request a copy of any warehouse receipt or storage agreement that they claim was provided to you. Without the existence of one of these documents, there cannot be a valid warehouse lien under Florida Law. See Richwagen v. Lilienthal, 386 So. 2d 247 (Fla. 4th DCA 1980). 

Step 3: Identify the lien being enforced against your property’s exact amount. If you’re able to satisfy this amount, one of our experienced litigation attorneys can help you through the process of satisfying the lien and avoiding the sale of your property altogether. 

If you’re not able to pay the full amount of the lien, there may still be ways to challenge the sale of your property. Whether it be improper notice, failure to hold excess proceeds from the sale, or unjustified additional fees, if a warehouse fails to comply with the requirements of § 677.210, it “is liable for damages caused by failure to comply with the requirements for sale under this section, and in case of willful violation, is liable for conversion.” § 677.210(9), Fla. Stat. 

For more information regarding warehouse lien enforcements, contact one of our experienced attorneys at 305-570-2208. You can also email our founding partner Eduardo Maura directly at eduardo@ayalalawpa.com. 

We at Ayala Law PA are passionate about helping those in legal need. If you believe that a warehouse is attempting to sell your property, or if you need other legal assistance, please don’t hesitate to schedule a case evaluation with us online here.