Legal Question in Business Law in California

Can an autobody shop repossess a customers car after releasing the car to the cu

We are a small body shop in Central Ca.(sole proprietor).We released an car that we had repaired to a customer on 4/4/05 with a balance of $453.80. We have received no payment from the customer since 5/03 and have received numerous excuses of why they cannot pay the balance of $187.82.He signed a contract agreeing to pay $125 every other week until the balance was paid in full. The contract he signed contains a clause that states we retain the right to have a lien on the vehicle. We have mailed a certified return receipt demand letter for the balance owed to be paid by 7/25/05 and have received an angry phone call but no payment. Since the car has left our shop can we legally repossess the vehicle and what is the proper procedure to follow?


Asked on 7/27/05, 7:10 pm

3 Answers from Attorneys
Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

Re: Can an autobody shop repossess a customers car after releasing the car to th

Yours is the first auto body shop I have ever heard of that releases customer vehicles prior to being paid in full -- by cash or credit card.

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Answered on 7/27/05, 7:48 pm
Carl Starrett Law Offices of Carl H. Starrett II

Re: Can an autobody shop repossess a customers car after releasing the car to th

The legal requirements to assert a lien are set forth in Civil Code Section 3068. Your biggest problem is that the lien is based on possession of the vehicle, so you lost any lien rights you may have had when you released it back to the customer. However, you still have the option of suing the owner in small claims. For more information on small claims, please visit the following link to my website: http://www.chs-law.com/2005/02/using-small-claims-court-part-i.html

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Answered on 7/27/05, 7:48 pm
Robert F. Cohen Law Office of Robert F. Cohen

Re: Can an autobody shop repossess a customers car after releasing the car to th

Once you obtain a judgment in small claims court, you can attempt to attach the car to satisfy your judgment. But certain exemptions might apply that could prevent you from even doing that.

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Answered on 7/27/05, 11:10 pm


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