2000 Minnesota Statutes

     336.7-210 Enforcement of warehouse operator's lien.  

    (1) Except as provided in subsection (2), a warehouse 
 operator'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 warehouse operator is not of itself sufficient 
 to establish that the sale was not made in a commercially 
 reasonable manner.  If the warehouse operator 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 sale, 
 or has otherwise sold in conformity with commercially reasonable 
 practices among dealers in the type of goods sold, the warehouse 
 operator 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 warehouse operator's lien on goods other than goods 
 stored by a merchant in the course of 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 be delivered in person or sent by 
 registered or certified letter to the last known address of any 
 person to be notified. 

    (c) 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 ten 
 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. 

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

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

    (f) 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 ten 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 warehouse operator subject to the terms of the 
 receipt and this article.  

    (4) The warehouse operator may buy at any public sale 
 pursuant to this section.  

    (5) A purchaser in good faith of goods sold to enforce a 
 warehouse operator's lien takes the goods free of any rights of 
 persons against whom the lien was valid despite noncompliance by 
 the warehouse operator with the requirements of this section.  

    (6) The warehouse operator may satisfy a 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 
 the warehouse operator 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 the creditor's debtor.  

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

    (9) The warehouse operator 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.  

    HIST: 1965 c 811 s 336.7-210; 1986 c 444