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New Zealand law explained for everyone

Contract and Commercial Law Act 2017

Other commercial matters - Lien for work done

341: Power of sale under lien for work done

You could also call this:

“You can sell someone's item if they don't pay you for work you did on it”

If you do work on something that belongs to someone else and they don’t pay you, you might be able to sell it. This is called a lien. Here’s how it works:

You can sell the item if two things happen. First, you must have the right to keep the item because you did work on it. Second, the person who owns it must not have paid you for at least two months after they should have.

If both of these things are true, you can sell the item at an auction. This is on top of any other ways the law says you can get your money.

When we talk about ‘goods’ in this part of the law, we mean anything that can be moved, including animals.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM7067807.

Topics:
Business > Fair trading Money and consumer rights > Consumer protection
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340: Wharf owner’s or warehouse owner’s protection, or

"Wharf and warehouse owners don't have extra responsibilities for goods"

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342: Notice of sale to be given, or

"Seller must tell you before selling your things to pay off your debt"

Part 5 Other commercial matters
Lien for work done

341Power of sale under lien for work done

  1. This section applies if—

  2. a person (A) has done work on goods in A’s possession and, as a result, A is entitled at law to a lien on the goods for any amount; and
    1. the amount remains unpaid for 2 months or more after it should have been paid.

      1. A may sell the goods by auction.

      2. The remedy in this section is in addition to all other remedies provided by law.

      3. In this subpart, goods includes all kinds of movable personal property, including animals.

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