Can we legally take possession of vehicles for storage fees have not been paid?
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Can we legally take possession of vehicles for storage fees have not been paid?
We are a small business that was approached by a man asking us to do him a favor by storing three of his vehicles on our property. We agreed to store his vehicles for a fee of $50 a month per vehicle. Foolishly, we did not create a written contract of the agreement. This man has not paid the storage fees for nearly a full year and owes over $1600. We have been unable to reach him via the contact information he provided us.
Asked on May 17, 2012 under Bankruptcy Law, Colorado
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
I would send invoices to this person for the cars you are storing for this person to his last known adderss if you have not done so already.
As to taking possession of the vehicles you are storing, you already have by storing them. Potentially under rules and regulations of your state's department of motor vehicles, you may be able to hold an auction of these vehicles to pay for accrued unpaid storage fees and rent where some of the proceeds from the auction can be used to pay you what is owed.
I recommend that you consult with an attorney that practices automotive law to assist you in the possible auction of these cars in storage and the process to go about it.
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