What is the difference between Section 23 and Section 24 applications under Ontario’s Repair and Storage Liens Act (RSLA)?

Section 23 and Section 24 of the RSLA both deal with liens on vehicles or equipment, but they apply at different stages and serve different purposes.

Under Ontario’s Repair and Storage Liens Act:

Section 23 — Determination of rights by the court
This is used when there is a question about any party’s rights under the Act — for example, whether a lien is valid, how much the lien is worth, whether a lien holder has registered a non-possessory lien, or how proceeds from a sale should be distributed. Any person affected by those questions can bring a Section 23 application.

Section 24 — Return of article when dispute
This is specifically for situations where the lien claimant holds possession of the article and refuses to surrender it, and the owner (or someone lawfully entitled) disputes the lien or its amount or quality of repair, etc. Under Section 24, the disputing party pays the claimed amount (or security) into court, obtains an initial certificate, which forces release of the article unless there is an objection, then a final certificate, and ultimately the lien shifts to the money in court, rather than hanging over the article itself.

In short: Section 24 is the mechanism to get your article back when there is a dispute. Section 23 is the broader tool to have the court determine rights, amounts, or purposes under the lien law.

Contact us to discuss the right strategy for your case.