Legal Definitions - common law lien

A common law lien is a legal right that allows one party to retain possession of another party's property until a debt related to that property is paid. Unlike liens that are specifically created by written laws (statutes) or by agreements between parties (contracts), a common law lien arises from long-established legal principles and judicial decisions that form part of the "common law" tradition. These liens are recognized and enforced by courts unless a specific statute or a later court ruling has explicitly abolished them.

• Innkeeper's Lien: Imagine a guest stays at a historic hotel for several nights, enjoying various services, but then attempts to check out without paying their accumulated bill. In many jurisdictions, the hotel (as an innkeeper) has a common law right to retain possession of the guest's luggage or other personal belongings found on the premises until the outstanding charges for accommodation and services are fully settled.

  How it illustrates the term: This right for the innkeeper to hold property is not typically found in a specific state statute or a clause in the guest's booking agreement. Instead, it stems from centuries of legal tradition concerning the duties and rights of innkeepers, making it a classic example of a common law lien.

• Carrier's Lien: Consider a freight company that transports a valuable shipment of electronics across the country for a client. Upon arrival, the client refuses to pay the agreed-upon shipping fees. The trucking company (the carrier) can legally retain possession of the electronics it transported until the client pays the outstanding freight charges.

  How it illustrates the term: The carrier's right to hold the goods to secure payment for their transportation services arises from long-standing legal customs and judicial precedents regarding the responsibilities and entitlements of common carriers. This right exists independently of any specific contractual term or modern legislative act, demonstrating its origin in common law.