                                 CODE OF VIRGINIA

ENFORCEMENT OF WAREHOUSEMAN&#8217;S LIEN (§ 8.7-210)

1. Except as provided in subsection (2), a warehouseman&#8217;s lien may be
enforced by public or private sale of the goods in bloc or in parcels, at any
time or place and on any terms which are commercially reasonable, after
notifying all persons known to claim an interest in the goods. Such notification
must include a statement of the amount due, the nature of the proposed sale and
the time and place of any public sale. 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 warehouseman is not of itself sufficient to establish that the
sale was not made in a commercially reasonable manner. If the warehouseman
either sells the goods in the usual manner in any recognized market therefor, or
sells at the price current in such market at the time of his sale, or 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.

2. A warehouseman&#8217;s lien on goods other than goods stored by a merchant in
the course of his business may be enforced only as follows:

   a. All persons known to claim an interest in the goods must be notified.

   b. The notification must include an itemized statement of the claim, a
   description of the goods subject to the lien, a demand for payment within a
   specified time not less than 10 days after receipt of the notification, and a
   conspicuous statement that unless the claim is paid within that time the goods
   will be advertised for sale and sold by auction at a specified time and place.

   c. The sale must conform to the terms of the notification.

   d. The sale must be held at the nearest suitable place to that where the goods
   are held or stored.

   e. After the expiration of the time given in the notification, an
   advertisement of the sale must be published once a week for two weeks
   consecutively in a newspaper of general circulation where the sale is to be
   held. The advertisement must include a description of the goods, the name of
   the person on whose account they are being held, and the time and place of the
   sale. The sale must take place at least 15 days after the first publication.
   If there is no newspaper of general circulation where the sale is to be held,
   the advertisement must be posted at least 10 days before the sale in not less
   than six conspicuous places in the neighborhood of the proposed sale.

3. Before any sale pursuant to this section, any person claiming a right in the
goods may pay the amount necessary to satisfy the lien and the reasonable
expenses incurred under this section. In that event, the goods must not be sold,
but must be retained by the warehouseman subject to the terms of the receipt and
this title.

4. The warehouseman may buy at any public sale pursuant to this section.

5. A purchaser in good faith of goods sold to enforce a warehouseman&#8217;s
lien takes the goods free of any rights of persons against whom the lien was
valid, despite the warehouseman&#8217;s noncompliance with the requirements of
this section.

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

7. The rights provided by this section shall be in addition to all other rights
allowed by law to a creditor against his debtor.

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

9. The warehouseman is liable for damages caused by failure to comply with the
requirements for sale under this section and, in case of willful violation, is
liable for conversion.

HISTORY: Code 1950, § 61-36; 1964, c. 219; 2004, c. 200.