holding property for mechanics lein

[DirtBoss]

Jurisdiction

Iowa

We have someone who is holding a piece of equipment until they get paid for a piece that was put on it. They claim they have a mechanics lien on it, but w have not seen any official paper work. Does having a mechanics lien on it mean you can hold it in your possession until paid? It would be easier to pay them if we had the piece of equipment back to make money with. They also claim they are owed other amounts that we are disputing over. We also claim they haven't paid us for work done for them. What are our options.

 

[adjusterjack]

We have someone who is holding a piece of equipment until they get paid for a piece that was put on it.

Seems reasonable to me.

They claim they have a mechanics lien on it, but w have not seen any official paper work.

There is no requirement for "official paper work." The lien is statutory:

Iowa Property Code, Chapter 577 - Artisan's Lien:

577.1 Nature of lien — generally — aircraft and equipment.
1. Any person who renders any service or furnishes any material in the making, repairing, improving, or enhancing the value of any inanimate personal property, with the assent of the owner, express or implied, shall have a lien thereon for the agreed or reasonable compensation for the service and material while such property is lawfully in the person's possession, which possession the person may retain until such compensation is paid, but such lien shall be subject to all prior liens of record, unless notice is given to all lienholders of record and written consent is obtained from all lienholders of record to the making, repairing, improving, or enhancing the value of any inanimate personal property and in this event the lien created under this section shall be prior to liens of record.

Don't let the reference to aircraft fool you. This statute applies to the repair of "any inanimate personal property."

Does having a mechanics lien on it mean you can hold it in your possession until paid?

Yes. Absolutely.

It would be easier to pay them if we had the piece of equipment back to make money with.

For you, obviously, but then there's no guarantee that they would be paid.

We also claim they haven't paid us for work done for them. What are our options.

You can sue them for the money they owe you but there is nothing in the law that requires them to give you back your equipment before you pay for it.