N.Y. Lien Law § 182: Self-storage facilities; lien

§ 182. Self-storage facilities; lien. 1. Definitions. As used in this

article:

(a) "Self-storage facility" means any real property or a portion

thereof that is designed and used for the purpose of occupying storage

space by occupants who are to have access thereto for the purpose of

storing and removing personal property. The owner of a self-storage

facility shall not be deemed to be a warehouseman as defined in the

uniform commercial code. Except as provided in paragraph (b) of this

subdivision, if an owner issues any warehouse receipt, bill of lading,

or other document of title for the personal property stored, the owner

and the occupant are subject to the provisions of the uniform commercial

code and the provisions of this section shall not be applicable.

(b) "Owner" means a person, partnership or corporation which operates

a self-storage facility, an agent, or any other person authorized by the

owner to manage the facility or to receive storage fees from an occupant

under an occupancy agreement. A warehouseman may be an owner to the

extent that any part of the building is operated as a self-storage

facility.

(c) "Occupant" means a person, entitled to the use of the storage

space at a self-storage facility under a written occupancy agreement or

his successor or assignee, to the exclusion of others including the

owner except as provided in this section or the occupancy agreement.

(d) "Occupancy agreement" means any written agreement, electronic or

printed, that establishes or modifies the terms, conditions, rules or

any other provisions concerning the use and occupancy of a self-storage

facility and any one or more individual storage spaces therein.

(e) "Personal property" means movable property not affixed to land and

includes, but is not limited to, goods, merchandise and household items.

(f) "Electronic mail" shall mean an electronic message or an

executable program or computer file that contains an image of a message

that is transmitted between two or more computers or electronic

terminals. Such term shall include electronic messages that are

transmitted within or between computer networks.

(g) "Last known address" shall mean the street address, post office

box address or electronic mail address provided by the occupant in the

occupancy agreement, or a subsequent address provided by the occupant

pursuant to the occupancy agreement.

(h) "Verified mail" shall mean any method of mailing that is offered

by the United States Postal Service or a private delivery service that

provides evidence of mailing including, but not limited to, a first

class mailing with certificate of mailing.

2. Required disclosures. (a) The owner shall be required to provide

prior to allowing occupancy a written occupancy agreement which shall be

dated and signed by the occupant and the owner or his duly authorized

agent, and be written or printed in a size equal to at least ten-point

bold type and which shall set forth the following information:

(i) name and address of owner and occupant and electronic mail address

of owner and occupant should the occupant choose to be contacted via

electronic mail;

(ii) street address of self-storage facility where goods will be

stored;

(iii) the actual monthly occupancy charge for the particular goods to

be stored expressed in dollars;

(iv) an itemization of other charges imposed or which may be imposed

in connection with the occupancy, a description of each such charge,

whether the charge is mandatory or optional, and the amount of each

charge expressed in dollars;

(v) a statement of any limitation of damages limiting the amount of

the owner's liability in case of loss or damage of the goods setting

forth a specific liability per room size or dollar amount beyond which

the owner will not be liable; provided that if damages are so limited, a

statement shall be included that such liability may on the written

request of the occupant and if accepted in writing by the owner at the

time of signing such occupancy agreement or within a reasonable time

thereafter be increased on part or all of the goods stored, in which

event increased rates may be charged based on such increased valuation.

The rates charged for an increased valuation shall be set forth and a

pre-addressed request form to enable the occupant to request an

increased valuation shall be provided; and

(vi) any other material terms and conditions of the occupancy

transaction.

(b) Every occupancy agreement as required by this section shall

include the business address and telephone number to be used by the

occupant in making inquiries concerning the occupancy transaction.

(c) Every occupancy agreement as required by this section shall

contain the following conspicuous notices: (i) "Notice: The monthly

occupancy charge and other charges stated in this agreement are the

actual charges you must pay"; (ii) "Notice: You may choose to be

contacted for legal matters related to late or lien notices, via

electronic mail by providing your electronic mail address in at least

two locations within the occupancy agreement".

3. Unlawful detention of goods. It shall constitute an unlawful

detention of goods for an owner to refuse to surrender goods stored by

him for an occupant upon payment by the occupant of the occupancy fees

permitted by this section.

4. Private right of action. (a) Any occupant damaged by an unlawful

detention of his goods or any other violation of this section may bring

an action for recovery of damages and the return of his goods. Judgment

may be entered in an amount not to exceed three times the actual damages

plus reasonable attorneys fees.

(b) Nothing in this section shall be construed so as to nullify or

impair any right or rights which a buyer may have against a seller at

common law, by statute or otherwise.

5. Violation and penalties. Whenever there shall be a violation of

this section, an application may be made by the attorney general in the

name of the people of the state to a court or justice having

jurisdiction by a special proceeding to issue an injunction, and upon

notice to the defendant of not less than five days, to enjoin and

restrain the continuance of such violations; and if it shall appear to

the satisfaction of the court or justice that the defendant has, in

fact, violated this section an injunction may be issued by such court or

justice, enjoining and restraining any further violation, without

requiring proof that any person has, in fact, been injured or damaged

thereby. In any such proceeding, the court may make allowances to the

attorney general as provided in paragraph six of subdivision (a) of

section eighty-three hundred three of the civil practice law and rules,

and direct restitution. Whenever the court shall determine that a

violation of this section has occurred, the court may impose a civil

penalty of not more than one thousand dollars for each violation. In

connection with any such proposed application, the attorney general is

authorized to take proof and make a determination of the relevant facts

and to issue subpoenas in accordance with the civil practice law and

rules.

6. Lien. The owner of a self-storage facility has a lien upon all

personal property stored at a self-storage facility for occupancy fees

or other charges, present or future, in relation to the personal

property and for expenses necessary for its preservation or expenses

reasonably incurred in its sale or other disposition pursuant to law and

any other charges pursuant to the occupancy agreement. The lien provided

for in this section is superior to any other lien or security interest.

The lien attaches as of the date the personal property is brought to the

self-storage facility.

7. Enforcement of lien. (a) An owner's lien may be enforced by public

or private sale of the occupant's goods that remain in the self-storage

facility, in block, or in parcel, at any time or place and on any terms

which are commercially reasonable after notice to all persons known to

claim an interest in the goods. The notice shall include an itemized

statement of the amount due, the description of the property subject to

the lien, the nature of the proposed sale, a demand for payment within a

specified time not less than thirty days from mailing of the notice and

a conspicuous statement that unless the claimant pays within that time

the goods will be advertised for sale and sold at public or private sale

in a commercially reasonable manner. The notice shall further include

the time and place of any public or private sale and it shall state that

any person claiming an interest in the goods is entitled to bring a

proceeding hereunder within ten days of the service of the notice if he

disputes the validity of the lien, or the amount claimed. The notice

shall be personally delivered to the occupant, or sent by registered or

certified mail to the occupant's last known address, or sent by verified

mail and electronic mail to the occupant's last known address. Any

notice made pursuant to this section and sent by verified mail shall be

sent to the last known address provided by the occupant, pursuant to the

occupancy agreement. Any notice made pursuant to this section and sent

by electronic mail shall only be effective if: (i) the occupancy

agreement states that the occupant has consented to receive late or lien

notices by electronic mail; and (ii) the occupant has provided the

occupant's electronic mail address in at least two locations within the

occupancy agreement.

(b) Any notice given pursuant to this section is deemed delivered when

it is: (i) properly addressed to the last known address, and (ii) either

sent by registered, certified or verified mail and evidence of mailing

is received, or sent by electronic mail and either a non-automated

response to the electronic mail is received or a receipt of delivery to

the electronic mail is received.

8. Pricing. The fact that a better price could have been obtained by a

sale at a different time or in a different method from that selected by

the owner is not of itself sufficient to establish that the sale was not

made in a commercially reasonable manner. If the owner either sells the

goods in the usual manner in any recognized market therefor, or if he

sells at the price current in such market at the time of his sale, or if

he has otherwise sold in conformity with commercially reasonable

practices among dealers in the type of goods sold, he has sold in a

commercially reasonable manner. A sale of more goods than apparently

necessary to be offered to insure satisfaction of the obligation is not

commercially reasonable except in cases covered by the preceding

sentence.

9. Special proceeding. The special proceeding may be brought in any

court which would have jurisdiction to render a judgment for a sum equal

to the amount of the lien. If the person shall show that the owner is

not entitled to claim a lien in the goods, or that all or part of the

amount claimed by the owner has not been properly charged to the account

of such person, or, as the case may be, that all or part of such amount

exceeds the fair and reasonable value of the services performed by the

owner, the court shall direct the entry of judgment cancelling the lien

or reducing the amount claimed thereunder accordingly. If the owner

shall establish the validity of the lien, in whole or in part, the

judgment shall fix the amount thereof, and shall provide that the sale

may proceed upon the expiration of five days after service of a copy of

the judgment together with notice of entry thereof upon the person,

unless the goods are redeemed prior thereto. If the lien is cancelled,

the judgment shall provide that, upon service of a copy of the judgment

together with notice of entry thereof upon the owner, the person shall

be entitled to possession of the property.