Senate Bill No. 605

(By Senators Wooton, Caldwell, Hunter, Redd, Ross, Snyder and Deem)

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[Originating in the Committee on the Judiciary;


reported March 26, 2001.]

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A BILL to amend and reenact section three, article eleven, chapter thirty-eight of the code of West Virginia, one thousand nine hundred thirty-one, as amended, relating to improver's liens on motor vehicles; and providing that secured party must pay improver upon redemption or other disposition of repossessed vehicle.

Be it enacted by the Legislature of West Virginia:
That section three, article eleven, chapter thirty-eight of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenacted to read as follows:
ARTICLE 11. MISCELLANEOUS LIENS AND PLEDGES.

§38-11-3. Improver's, storer's or transporter's lien on personal property and animals.

A person who, while in possession thereof, makes, alters, repairs, stores, transports or in any way enhances the value of an article of personal property, or boards, pastures, feeds, trains, improves or transports any animal shall have a lien upon such article or animal while lawfully in the possession thereof, for the charges agreed upon, or, if no charges be agreed upon, then for his just and reasonable charges for the work done or the board or storage or transportation furnished, to the extent and in the manner provided for in section fourteen of this article, and may retain possession thereof until such charges are paid. Such lien shall be good against the person who deposited the property with the lienor and against any other person by whose authority or with whose consent the property was deposited: Provided, That, notwithstanding the provisions of this section and section two of this article, if a person possessing an improver's lien on a motor vehicle releases that vehicle to a secured party taking possession after default, the secured party shall, upon redemption of the vehicle by the debtor or resale or other disposition by the secured party, pay to the improver the actual cost of improvements as measured by the cost of inventory and labor. If two or more articles of personal property are made, altered, repaired, stored, transported or enhanced in value as aforesaid, or two or more animals are boarded, pastured, fed, trained, improved or transported as aforesaid, under one contract or agreement, any one or more of such articles or animals may be held under the lien, hereinbefore mentioned, for all of the charges upon all such articles included in such contract or agreement.
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(NOTE: The purpose of this bill is to ensure the vehicle repairers are paid when the vehicle is repossessed.

Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.)