Big changes to the Repair and Storage Liens Act in Ontario

On July 1, 2016, change to the Repair & Storage Liens Act (RSLA) come into effect in Ontario.

The industries that will be most heavily effected are Auto Repair & Storage facilities, well at least, that is the industry the government is targeting with this legislation.

Of course, as with all things, the targeted industry will not be the only one impacted. So, if your business currently enforces its’ RSLA rights, where are the upcoming changes you need to know about:

Determination of fair value

1. (1) In determining the fair value of the repair under paragraph 2 of subsection 3 (1) of the Act or of the part of the repair under paragraph 3 of subsection 3 (1) of the Act, the following factors shall be considered and may be included:

1. The repairer’s fixed costs, variable costs, direct costs and indirect costs.

2. The repairer’s profit.

3. Any other relevant factors.

(2) In determining the fair value of the storage or storage and repair under paragraph 2 of subsection 4 (1) of the Act or of the storage and part of the repair under paragraph 3 of subsection 4 (1) of the Act,

(a) the following factors shall be included,

(i) the expenses incurred by the storer in relation to the storage or storage and repair or storage and part of the repair of the article, including expenses related to insurance, transportation, labour, weighing and packing, and

(ii) all lawful claims for money advanced and interest on money advanced by the storer in relation to the article; and

(b) the following factors shall be considered and may be included,

(i) the storer’s fixed costs, variable costs, direct costs and indirect costs,

(ii) the storer’s profit, and

(iii) any other relevant factors.

Note: Sections 2 and 3 come into force on January 1, 2017, the day section 2 of Schedule 1 to the Fighting Fraud and Reducing Automobile Insurance Rates Act, 2014 comes into force.

Compliance with Consumer Protection Act, 2002

2. The following provisions of Part VI.1 of the Consumer Protection Act, 2002 are prescribed for the purposes of subsections 3 (2.0.1) and 4 (3.0.1) of the Repair and Storage Liens Act:

Maximum lien for tow and storage services under Consumer Protection Act, 2002

3. For the purposes of subsections 3 (2.2) and 4 (3.2) of the Act, the amount of the repairer or storer’s lien, as the case may be, with respect to tow and storage services to which Part VI.1 of the Consumer Protection Act, 2002 applies shall not exceed the amount that the repairer or storer is permitted to charge for those services under subsection 65.4 (2) or section 65.9 of that Act or subsection 52.11 (2) of Ontario Regulation 17/05 (General) made under that Act.

Notice of lien, motor vehicles

4. (1) The following are prescribed classes of articles for the purposes of subsection 4 (4.1) of the Act:

1. A motor vehicle for which a permit has not been issued under the Highway Traffic Act, received by the storer on or after the day this Regulation comes into force.

2. A motor vehicle for which a permit has been issued under the Highway Traffic Act, received by the storer on or after the day this Regulation comes into force.

(2) In the case of a motor vehicle prescribed under paragraph 1 of subsection (1),

(a) the prescribed period for the purposes of subsection 4 (4.1) of the Act is 60 days; and

(b) the prescribed persons for the purposes of clause 4 (4.1) (b) of the Act are,

(i) every person who has a registered claim for lien against the motor vehicle under Part II of the Act, and

(ii) every person who has a security interest in the motor vehicle that is perfected by registration under the Personal Property Security Act against the vehicle identification number of the vehicle.

(3) In the case of a motor vehicle prescribed under paragraph 2 of subsection (1),

(a) the prescribed period for the purposes of subsection 4 (4.1) of the Act is 15 days; and

(b) the prescribed persons for the purposes of clause 4 (4.1) (b) of the Act are,

(i) every person who has a registered claim for lien against the motor vehicle under Part II of the Act,

(ii) every person who has a security interest in the motor vehicle that is perfected by registration under the Personal Property Security Act against the vehicle identification number of the vehicle,

(iii) the person whose name appears on the vehicle portion of the permit issued under the Highway Traffic Act, and

(iv) the person whose name appears on the plate portion of the permit issued under the Highway Traffic Act, if this is a different person than the one referred to in subclause (iii).

Methods of delivery, deemed receipt

5. (1) The following methods of delivery are prescribed for the purposes of clause 27 (1) (c) of the Act:

1. Fax.

2. Electronic transmission.

(2) A document sent by fax or by electronic transmission is deemed to have been given on the earlier of,

(a) the day the intended recipient actually receives it; or

(b) the first business day after the day it is sent.

6. Omitted (provides for coming into force of provisions of this Regulation).

If this is confusing to you, email our firm and we’ll walk you through it. If you have RSLA rights, you have the right to enforce them: don’t give up those rights.

Inga B. Andriessen JD
iandriessen@staging.andriessen.ca

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