7-211 - Proceeding to Determine Validity of Lien. - New York Statutes

Section 7-211. Proceeding to Determine Validity of Lien. Within ten days after service of the notice of sale, a person claiming an interest in the goods may commence a special proceeding to determine the validity of the lien. The special proceeding may be brought in any court which would have jursidiction to render a judgment for a sum equal to the amount of the lien. If the person shall show that the warehouseman is not entitled to claim a lien in the goods, or that all or part of the amount claimed by the warehouseman 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 warehouseman, the court shall direct the entry of judgment cancelling the lien or reducing the amount claimed thereunder accordingly. If the warehouseman 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 pursuant to subsection (3) of section 7-210. 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 warehouseman, the person shall be entitled to possession of the property.