WHAT IS A LIVESTOCK SERVICER’S LIEN?
When you provide services for livestock you can take steps to place yourself in a position of priority for the amount of your bill. By doing this you may be able to collect the amount of your bill when claims are made by other creditors upon the livestock.
California law provides that a person who provides livestock services within the past year pursuant to a contract with the owner of that livestock has a lien on the livestock in his possession.
Before you allow the livestock to be delivered onto your property you must first enter into a contract with the owner or his authorized agent for the livestock services you are going to provide. It is always preferable to have this contract in writing but you may also have an oral contract.
As your bill accrues you have a lien on the livestock for any unpaid amount. In order to maintain your lien you must retain possession of the livestock until the bill is discharged. If the bill is paid in full then you must release possession of the livestock to the owner.
If the bill remains unpaid your lien is valid for one year. Therefore you must either obtain the owner’s written permission to sell or allow you to retain the livestock or you must begin legal proceedings to foreclose on your lien.
Once you have a livestock servicer’s lien you will have priority over all other claimants against the livestock. Secured and unsecured creditors will have to allow your claim to be paid before they will be entitled to recover any of the moneys generated from the sale of the livestock.
When you have a questionable debt, by having a valid livestock servicer’s lien, you may be able to collect the amount of your bill when you otherwise might not. It is important to be cognizant of the value of the livestock in relation to the outstanding bill. If the bill starts to approach the value you need to take action to pursue your lien rights.
