Legal Definitions - Possessory lien

A possessory lien is a legal right that allows a person or business to keep physical possession of someone else's property until a debt owed for services or materials provided to that specific property has been paid. This right typically arises by law and is entirely dependent on the lienholder physically holding the property. If possession is voluntarily given up, the lien is usually lost.

Here are a few examples to illustrate how a possessory lien works:

• Auto Repair Shop: Imagine you take your car to a mechanic for a major engine repair. The mechanic completes the work, but when you come to pick up the car, you are unable to pay the full repair bill. In many jurisdictions, the mechanic's shop would have a possessory lien on your vehicle. This means they can legally keep your car in their possession until you pay for the services and parts they provided to fix it. The lien secures their payment because they hold the property itself.
• Custom Tailor or Dressmaker: Suppose you commission a tailor to create a custom-fitted suit or dress for a special occasion. The tailor purchases the fabric, spends many hours on fittings and construction, and completes the garment. If, upon completion, you refuse to pay the agreed-upon price, the tailor can exercise a possessory lien. They can legally retain the finished suit or dress until you settle your outstanding balance for their services and materials.
• Computer Repair Service: A small business owner brings a malfunctioning server to a computer repair shop for data recovery and hardware replacement. The shop successfully recovers the data and installs new components, incurring significant labor and material costs. If the business owner then disputes the bill and refuses to pay, the computer repair shop can assert a possessory lien. They can hold onto the repaired server and the recovered data (if stored on the server) until the payment for their services and parts is made.