The court-appointed Receiver and an equipment lessor brought motions seeking declarations that the respondent, Hub Truck Centre, did not have valid repair and storage liens over certain trucks formerly operated by the debtor.
Hub had refused to surrender the vehicles, claiming over $2 million in liens.
The court found that Hub failed to prove it was a 'repairer' or 'storer' under the Repair and Storage Liens Act, as there was no evidence of an understanding that it would be paid.
Furthermore, Hub lost any potential possessory liens because the vehicles constantly moved in and out of its yard, and it failed to obtain signed acknowledgments of indebtedness to perfect non-possessory liens.
The motions were granted, the liens were declared invalid, and substantial indemnity costs were awarded against Hub.
