Demystifying Section 24 Applications under the RSLA: Ensuring Fair Return of Your Asset

Under the Repair and Storage Liens Act (RSLA), you may be in a dispute with someone who says they have the right to keep your property until you give them money.  This Act may offer a fair means of resolving these conflicts.

For our clients, they often encounter towing and storage companies holding their asset, often a vehicle, in demand for money. This is permitted under the RSLA, if there is a valid reason.  We have found that many towing and storage companies do not understand the RSLA and often charge exorbitant amounts for storage and other fees. We have been successful in challenging these charges using Section 24 Applications to reduce the amount owing to what is permitted, often a fraction of what they are charging.  

The procedure for submitting a “Section 24 Application,” which is utilized in cases when there is a dispute regarding a lien claim, is described in Section 24 of the RSLA. This is a condensed description of how it functions:

Dispute Exists: You can go to the court for a resolution if there is a disagreement about the amount owing for storage or repairs of your asset, or if there is a question about who is entitled to keep it.

Application to the Court: If you are the asset owner or lien holder, you may submit an application to the court under Section 24 of the RSLA. An offer to resolve the disagreement may also be included in this form.

Payment to the Court: The full amount that the company holding your asset has claimed must be paid with your application to the court. You may also outline an offer to settle in this form. 

Initial Certificate: The court will provide an Initial Certificate which you must give to the party holding your asset, who is then required to release it within 3 days, or file a Notice of Objection.

Notice of Objection:  If the holder of the asset disputes the amount you paid into court, they will file and serve a Notice of Objection.  You must then pay any additional amounts they are claiming into court and obtain a Final Certificate. 

Final Certificate: After the court issues a Final Certificate, the other party is required to release your asset within 3 days.

Writ of Seizure: if the other party refuses to release your belongings, despite the Certificate being served upon them, you can obtain a writ of seizure from the court, which orders a sheriff or bailiff to seize and return your property to you.

Resolution: When your asset is returned, the lien becomes a charge on the money you paid to the court rather than a lien on your asset. If the other side wishes to pursue the funds paid into court as compensation, they can then launch a claim. 

Discharge: If the opposing party fails to commence an action within 90 days, then you can apply to the court to release the funds back to you, as the charge against those funds can now be discharged.

Above is just a simplified summary of the Ontario Repair and Storage Liens Act’s (RSLA) Section 24 Application process.  It’s crucial to remember that this procedure can be complex and that several issues could arise. Storage fee calculations are made more complicated by the fact that certain municipalities have by-laws that restrict how much a facility can charge for storage. In addition, in order to maintain a legitimate lien over repairs, the repairer still needs to abide by the Consumer Protection Act, which includes following particular guidelines pertaining to estimates, bills, and consumer rights. Further complications may arise from other possible problems, such as figuring out which legal entity is actually in possession of your property, making sure that the Application and Certificate’s are served correctly, and dealing with liens that were not properly registered. In order to fully grasp your rights, obligations, and options in repair and storage lien disputes, it is important that you obtain legal counsel.

With 15 years of expertise under its belt, our organization is well-equipped to handle the intricacies of Ontario’s Repair and Storage Liens Act (RSLA). Our breadth of experience sets us apart as a trustworthy and informed partner for companies dealing with problems arising from this Act. We have developed our skills over the years to handle a variety of situations, from settling disagreements over lien claims to settling issues involving the storage and release of property. Our track record demonstrates our unwavering dedication to offering practical solutions and defending the rights of our clients. You can be sure that when you deal with us, you are collaborating with a group that is committed to getting the greatest result and is aware of the subtleties of the RSLA.