Should Repairers Have Something to Lien on? An Analysis of Reform Options for the Common Law Lien in the Personal Property Securities Act 1999

36 Pages Posted: 26 Jul 2016

See all articles by Tory Hansen

Tory Hansen

Victoria University of Wellington, Faculty of Law, Student/Alumni

Date Written: 2015

Abstract

The repairer’s lien is one of the last remaining at common law. Under the Personal Property Securities Act 1999, a repairer’s lien over goods takes priority over any security interest in the same goods. Due to the advent of trading on credit terms, repairers are increasingly unable to rely on a lien as a means of security. Because of the nature of their work, ordinary security interests taken by repairers are likely to lose in any priority dispute.

This paper addresses two broad points within this issue. The first point considered is whether the repairer’s interests should be protected, concluding that they should be afforded a super priority similar to the current scheme. The second point considered is the nature of reform that could be undertaken, concluding that a statutory lien should be inserted into the PPSA. This lien would generally subsist in credit trading environments whilst not adversely affecting the interest of other creditors.

Keywords: common law repairer’s lien, Personal Property Securities Act 1999, priority

JEL Classification: K11

Suggested Citation

Hansen, Tory, Should Repairers Have Something to Lien on? An Analysis of Reform Options for the Common Law Lien in the Personal Property Securities Act 1999 (2015). Victoria University of Wellington Legal Research Paper, Student/Alumni Paper No. 43/2016, Available at SSRN: https://ssrn.com/abstract=2814402

Tory Hansen (Contact Author)

Victoria University of Wellington, Faculty of Law, Student/Alumni ( email )

PO Box 600
Wellington, Victoria 6140
New Zealand

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