Legal Question in Business Law in California

Charging for such things without proper notice is not appropriate. You have a couple of choices to start the process. First, let them know that it is a financial burden on you for you not to get paid in a timely manner and that it costs you money to "store" their vehicle. Let them also know, in writing, that vehicles left after 10 days are subject to a reasonable storage fee each day that it is left there after the work has been completed. If they do not pay within 15 days, start the small claims court process. The longer you wait, the more difficult it will become for you. I would suggest that you have as part of your "estimate/bid/taking in jobs" that you have them sign the "intake form" that covers such matter as well as other issues that you will/may have. If you want to know more, let me know.

By Grace...

Shawn Jackson ESQ. (707) 584-4529

Business Development Attorney

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I would take a little different approach than that suggested by Mr. Jackson.

First, assuming your business is one that is governed by the rules of the California Bureau of Automotive Repair, make a phone call to their assistance line.

Next, note that the Civil Code has an entire Chapter devoted to "liens on vehicles," describing the rights of businesses in your situation. The provisions of the code are too lengthy to set forth on a bulletin board answer, but you can look up and read Civil Code sections 3067 to 3074.

In summary, you have a lien that is dependent upon possession. So long as you have the vehicles in your shop, the owner has to pay you bill in order to get them back (Section 3068(a)).

There are different procedures to enforce the lien depending on the value of the vehicle -- more that $4,000, you go one way; less than $4,000, a different way. You may have to apply to the Department of Motor Vehicles for a permit to sell the vehicle to enforce your lien. (Section 3071).

Finally, as to the amount you can charge for storage. Certainly, some charge can be tacked on to your claim of lien. The law limits the number of days you can charge for, but I didn't notice anything about the amount. It might be hard to justify charging more per 24 hours than a downtown parking garage. If your contract does not specify a storage charge, you'll need to figure out a fair amount, add it to your invoices, and see if it goes unprotested. If the client does not make any objection, the storage charge will, after a while, become an agreed-upon amount in the eyes of the law under a principle called "account stated" and can be recovered in a lawsuit or as an element of the amount due under the lien.

This is all pretty complicated, and you may need a local lawyer's assistance, but I think understanding the basic principles of automotive-repair lien law is part of the knowledge needed to succeed in a difficult business.