Discharge of the Lien (RSLA)

Repair and Storage Liens Act, R.S.O. 1990, c. R.25

12 (1) A non-possessory lien is discharged and cannot be revived as an interest in the article,

(a) upon payment to the lien claimant of the amount of the lien claimed;

(b) upon payment into court under Part IV (Dispute Resolution) of the amount set out in the claim for lien;

(c) upon the order of a court;

(d) upon the registration of a change statement recording the discharge;

(e) upon the expiry of the registration period of the claim for lien; and

(f) if the article is a motor vehicle, upon a change of ownership of the vehicle if a claim for lien was not registered before the change of ownership occurred.

(2) Where a claim for lien relates to more than one article and it is agreed to release one or more, but not all, of the articles from the lien, a change statement recording the release may be registered.

...

23 (1) Any person may apply to a court for a determination of the rights of the parties where a question arises with respect to,

(a) the seizure of an article under Part II (Non-possessory Liens), any right of seizure in respect of the article, whether the costs of seizure are recoverable or whether they exceed the amount permitted under subsection 14 (3.1);

(b) the sale of an article under Part III (Redemption, Sale or Other Disposition);

(c) the distribution of the proceeds of the sale of an article under Part III, including the right of any person to share in those proceeds, and the obligation of any lien claimant to account for those proceeds;

(d) the amount of a lien or the right of any person to a lien; and

(e) any other matter arising out of the application of this Act, and the court may make such order as it considers necessary to give effect to those rights. R.S.O. 1990, c. R.25, s. 23 (1); 2006, c. 34, s. 23 (3).

(2) An application shall not be made under clause (1) (d) where an application has been made under section 24. R.S.O. 1990, c. R.25, s. 23 (2).

(3) An application under subsection (1) to the Small Claims Court shall be in the prescribed form. 2017, c. 20, Sched. 11, s. 31.

24 (1) Where a claimant claims a lien against an article under Part I (Possessory Liens) and refuses to surrender possession of the article to its owner or any other person entitled to it and where one of the circumstances described in subsection (1.2) exists, the owner or other person lawfully entitled to the article may apply to the court in accordance with the procedure set out in this section to have the dispute resolved and the article returned. 2000, c. 26, Sched. B, s. 18 (2).

...

(9) Where the respondent does not release the article as required, the applicant may obtain from the clerk or registrar of the court, without notice to the respondent, a writ of seizure in the prescribed form directing the sheriff or bailiff to seize the article and, upon receipt of the writ, the sheriff or bailiff shall seize the article and return it to the applicant. R.S.O. 1990, c. R.25, s. 24 (9); 2017, c. 20, Sched. 11, s. 32 (5).

...

(13) Where the article is released to the applicant by the respondent or is seized by the sheriff or bailiff under subsection (9), the lien is discharged as a right against the article and becomes instead a charge upon the amount paid into court or the security deposited with the court, and where the respondent seeks to recover the full amount claimed by the respondent to be owing, the respondent may commence an action to recover that amount. R.S.O. 1990, c. R.25, s. 24 (13); 2017, c. 20, Sched. 11, s. 32 (7).

(14) The charge upon the money paid into court or the security deposited with the court is discharged ninety days after the article was returned to the applicant or seized unless, before the end of the ninety days, the respondent has accepted the applicant’s offer of settlement or has commenced an action to recover the amount claimed. R.S.O. 1990, c. R.25, s. 24 (14); 2017, c. 20, Sched. 11, s. 32 (8).

(15) Upon the expiry of the ninety days referred to in subsection (14), the clerk or registrar of the court may return to the applicant the money paid into court and deliver up for cancellation any security deposited with the court if the applicant files with the clerk or registrar an affidavit confirming that the respondent has neither accepted an offer of settlement nor commenced an action to recover the money claimed. R.S.O. 1990, c. R.25, s. 24 (15); 2017, c. 20, Sched. 11, s. 32 (9).