Author: Reilly Dwyer
If your business has incorporated or referred to provisions of the Warehouse Lien Act [RSBC 1996] c. 480 in your contracts, it may be time to update your terms and conditions.
Shipyards, marinas, and other facilities offering storage services often assert a warehouser’s lien over vessels or otherwise rely on the provisions of the Warehouse Lien Act.
As of June 30, 2025, the Warehouse Lien Act was repealed by the Commercial Liens Act [SBC 2022] c. 9.
Key Transitional Rule
Under the Commercial Liens Act, any warehouse lien existing on June 29, 2025, continues as a lien under the new Act.
Notable Change in Lienholder Obligations
Unlike the Warehouse Lien Act, which explicitly designated the lienholder as a bailee, the Commercial Liens Act does not impose the obligations of a bailee on a lienholder.
Instead, it imposes an obligation of “reasonable care in the custody and preservation of goods”. How this shift will be interpreted by the courts remains to be seen, and its practical impact for lienholders is not yet entirely clear.
Why This Matters
If your current contracts reference the Warehouse Lien Act or rely on its sale provisions, they may no longer reflect the current law. Updating your agreements to align with the Commercial Liens Act will help ensure clarity in your rights and obligations and assist with enforceability.
We Can Help
Owen Bird’s lawyers are available to review your existing documentation, advise on how these legislative changes may affect your operations, and assist in updating your contracts and any applicable terms and conditions.
Contact us to discuss next steps.
| Paul J. Brown
Direct 604-691-7505 Fax 604-632-4436 Email pbrown@owenbird.com |
George J. Roper
Direct 604-691-7555 Fax 604-632-4475 Email gjroper@owenbird.com |