Legal Question in Real Estate Law in California
I am the sole proprietor of a small computer repair business here in Sacramento. I charge a $99 flat fee for all repairs. Most repairs are done in-home, but occasionally a customer will drop it off at my home instead.
From time to time customers drop their PC's off to be fixed, but never return to pick them up.
Presently I am dealing with a customer who gave me her PC a month ago to be repaired. A few days later I called her to tell her it was fixed and ready for pickup. I have called numerous times and left messages. I have sent emails as well (they have another PC) but she never called me back.
Then last week I got a voicemail from her - upbeat as can be - saying that she has the day off and wants to come and get it. She asked that I give her a call and tell her if I would be around. I called her right back and got her voicemail. I told her there would be someone home all day. She never called me back, and never showed up to pick up the PC. She's obviously playing games, and that upsets me.
When this happens I end up having to eat it, because the work has already been done to repair the PC, so the customer owes me that money. Yet they don't answer the phone when I call, they won't call me back, and won't respond to emails.
So what recourse do I have in cases like this? How long do I have to hang on to these PC's for customers who refuse to pick them up?
3 Answers from Attorneys
You have to hold the items for a reasonable period of time, at least 30 days, and give notice to them that it now is considered abandoned and will be sold at auction to be held X date or if it has no value will be used for parts or junked. You need to have a contract to give people that specifies what work you will do, what they have to pay you [including compensation for your time to sue them], when the property will be considered abandoned, what you can do with the computers, etc. You should require them to make a minimum payment [tell them why, must have all pay to average out to cover one's who stiff you], give multiple contact numbers, consider hiring neighborhood kids and giving them $30 to go to the people's home and collect what is owed you and drop off the computer [I am sure that the people who never pick up their computer never return to you as customers nor recommend you to others].
In the long run, it would be wisest to hire an attorney to prepare a contract for you; I charge $100 per hour and it would take a few hours. At least check with others in the same line of work and see if they have written contracts and borrow language from their documents. You all should probably develop a list of deadbeats or problem customers for all in the business to see.
Your recourse for the non-payment of your fees and wages is to file a small claims action.
People like you who run repair shops and get possession of the customer's thing during the repair period have some rather helpful lien rights under California law. You should look up and review Civil Code sections 3051, 3051a, 3052b and 3052.5. There are some intervening sections that probably don't apply to you. In general, however, you have a lien on the computers left for repair, a customer must pay before being entitled to get their property returned, and you can eventually sell unclaimed equipment, subject to the Code.
Please note that certain businesses and occupations are regulated or licensed in California, both at the state and local level, and if you have not complied with the licensing, etc. laws, your right to collect under the laws allowing servicer's liens may be cut off.
In particular, note that there is a "Bureau of Repair Services" whose responsibilities are set forth in sections 9800 et seq. of the Business & Professions Code, and you may need to register or get a license under these or other provisions of law before you can get tough with customers or, for that matter, have customers at all.