When a secured vehicle is wrongfully sold or transferred, every hour counts. Swift legal action—backed by precise knowledge of New York’s Lien Law—often determines whether a lienholder can recover its collateral. A recent ruling by Justice David A. Weinstein offers a powerful reminder: garages that cut corners on notice requirements risk losing their lien rights entirely.
The Case: Procedural Failures Prove Costly
Lux Auto Body, Inc. claimed a $46,639.44 garage lien against a Mercedes-Benz SUV in Stony Point, New York. The vehicle, which was subject to an auto finance company’s lien, had been towed and stored after an accident. After months of storage charges, Lux applied for and obtained title, then sold the vehicle.
The lienholder and its affiliates immediately challenged the lien and sale, arguing Lux failed to follow mandatory notice procedures under New York’s Lien Law. Justice Weinstein agreed—and the consequences were sweeping.
What the Court Decided
New York Lien Law sections 184 and 201 leave no room for shortcuts. Before proceeding with a sale, a garage must attempt personal service within the county on both the owner and any lienholder. Only after this due diligence fails may the garage use certified mail with a return receipt requested.
Lux Auto Body skipped those steps. The garage sent certified mail but provided no proof of any attempt at personal service, no evidence of due diligence, and—most importantly—no return receipt requests. The court found these omissions fatal. Since the garage never properly served notice, its lien was invalid, and the ten-day challenge window never began to run.
Justice Weinstein also reaffirmed a key protection for lenders: a DMV-issued title that omits a lienholder’s interest does not extinguish that lien. A purchaser, however innocent, cannot gain stronger rights than the selling garage had—and when the underlying sale violates the statute, the buyer’s title fails too.
The Outcome: Lien and Sale Voided
The court voided Lux’s lien and invalidated the sale, directing further proceedings to correct title and determine proper possession. This decision reinforces that lienholders have powerful remedies available when garages disregard procedural requirements.
Why It Matters for Lienholders
New York’s lien procedures are strict for a reason—they protect both property rights and due process. Yet garages and tow operators regularly overlook these requirements, assuming lienholders will accept losses or inflated charges rather than fight back. As this case proves, the law is on your side.
When notice is defective, the lien can be voided. When title is improperly transferred, it can be corrected. But these results require prompt legal action and precise advocacy rooted in years of experience with lien litigation.
Protecting Your Rights Starts with Enforcement
Our firm has spent more than three decades defending lienholders against illegal garage practices and recovering vehicles and funds that others assumed were lost. We know the courts, the statutes, and the tactics tow yards use to test the limits of the Lien Law.
If your secured vehicle has been sold, titled away, or held under questionable charges, time is critical. Contact our lien enforcement team to review your case. One procedural misstep by a garage could mean total recovery for you—if you act quickly.