Under Section 187 of NY Lien Law, every person or entity engaged in “carting or trucking property shall have a lien upon such property and may retain such portion of the property in his possession” to help ensure payment for the truckman or drayman. See NY Lien Law § 187. Possession of the property is required for this lien. Please note that this lien does not take priority over other liens.
Here are a few important provisions in the statute:
- “If such amount remains unpaid for thirty  days after demand, such bailee for hire may upon fifteen  days’ notice in writing to the owner, specifying the amount due and informing him that the payment of such amount within fifteen days will entitle him to redeem such property, and if such property is not redeemed, such bailee may sell such property at public sale to satisfy the account, including any expense for storage, insurance, or otherwise incurred for the protection or preservation of such property.” NY Lien Law 187 (emphasis added).
- “The proceeds of the sale after paying the expenses thereof shall be applied in liquidation of the indebtedness secured by such lien, and the balance, if any, shall be paid over to the owner. Such notice shall be served by registered mail directed to the owner’s last known post office address and by posting in three public places in the town, village or city where the property is located.” NY Lien Law 187 (emphasis added).
Please note that there is no filing requirement in New York for this lien.
This is an excerpt from my first book that I co-authored with Pat Dillon, an Iowa agriculture lawyer titled “Field Manual: Legal Guide for New York Farmers and Food Entrepreneurs” available on CreateSpace, Amazon, Kindle and iBooks. You can find out more about this book here.