400.7-210. Enforcement of warehouseman's lien. - Missouri Statutes

Enforcement of warehouseman's lien.

400.7-210. (1) Except as provided in subsection (2), awarehouseman's lien may be enforced by public or private sale ofthe goods in bloc or in parcels, at any time or place and on anyterms which are commercially reasonable, after notifying allpersons known to claim an interest in the goods. Suchnotification must include a statement of the amount due, thenature of the proposed sale and the time and place of any publicsale. The fact that a better price could have been obtained by asale at a different time or in a different method from thatselected by the warehouseman is not of itself sufficient toestablish that the sale was not made in a commercially reasonablemanner. If the warehouseman either sells the goods in the usualmanner in any recognized market therefor, or if he sells at theprice current in such market at the time of his sale, or if hehas otherwise sold in conformity with commercially reasonablepractices among dealers in the type of goods sold, he has sold ina commercially reasonable manner. A sale of more goods thanapparently necessary to be offered to insure satisfaction of theobligation is not commercially reasonable except in cases coveredby the preceding sentence.

(2) A warehouseman's lien on goods other than goods storedby a merchant in the course of his business may be enforced onlyas follows:

(a) All persons known to claim an interest in the goods mustbe notified.

(b) The notification must be delivered in person or sent byregistered or certified letter to the last known address of anyperson to be notified.

(c) The notification must include an itemized statement ofthe claim, a description of the goods subject to the lien, ademand for payment within a specified time not less than ten daysafter receipt of the notification, and a conspicuous statementthat unless the claim is paid within that time the goods will beadvertised for sale and sold by auction at a specified time andplace.

(d) The sale must conform to the terms of the notification.

(e) The sale must be held at the nearest suitable place tothat where the goods are held or stored.

(f) After the expiration of the time given in thenotification, an advertisement of the sale must be published oncea week for two weeks consecutively in a newspaper of generalcirculation where the sale is to be held. The advertisement mustinclude a description of the goods, the name of the person onwhose account they are being held, and the time and place of thesale. The sale must take place at least fifteen days after thefirst publication. If there is no newspaper of generalcirculation where the sale is to be held, the advertisement mustbe posted at least ten days before the sale in not less than sixconspicuous places in the neighborhood of the proposed sale.

(3) Before any sale pursuant to this section any personclaiming a right in the goods may pay the amount necessary tosatisfy the lien and the reasonable expenses incurred under thissection. In that event the goods must not be sold, but must beretained by the warehouseman subject to the terms of the receiptand this article.

(4) The warehouseman may buy at any public sale pursuant tothis section.

(5) A purchaser in good faith of goods sold to enforce awarehouseman's lien takes the goods free of any rights of personsagainst whom the lien was valid, despite noncompliance by thewarehouseman with the requirements of this section.

(6) The warehouseman may satisfy his lien from the proceedsof any sale pursuant to this section but must hold the balance,if any, for delivery on demand to any person to whom he wouldhave been bound to deliver the goods.

(7) The rights provided by this section shall be in additionto all other rights allowed by law to a creditor against hisdebtor.

(8) Where a lien is on goods stored by a merchant in thecourse of his business the lien may be enforced in accordancewith either subsection (1) or (2).

(9) The warehouseman is liable for damages caused by failureto comply with the requirements for sale under this section andin case of willful violation is liable for conversion.

(L. 1963 p. 503 § 7-210)