A successful replevin action is an important step toward recovering collateral, but the work does not necessarily end once a vehicle is seized. For secured creditors, what happens immediately after recovery can have significant financial implications.
Vehicles obtained through court proceedings are often held at impound lots, towing facilities, or other storage locations while parties arrange their release. During this time, storage fees and other associated charges may continue to accrue, creating additional expenses that can complicate an otherwise successful recovery. For this reason, vehicle recovery should be approached as a process that extends beyond obtaining possession and includes a timely, well-planned retrieval strategy.
Storage Fees: Why Timing Matters
Storage costs can accumulate quickly, particularly when a vehicle remains at a storage facility longer than necessary. Daily storage charges, towing expenses, administrative fees, and other applicable costs can increase the overall expense associated with recovering collateral. Although these charges may not exceed the vehicle’s value in every case, they can significantly affect the financial benefit of recovery and add costs.
Prompt retrieval is an important consideration for creditors seeking to protect their collateral and manage expenses, especially because fees can vary significantly based on the location. Establishing a clear plan for the vehicle’s release as soon as possible after seizure can help minimize unnecessary delays and prevent avoidable costs from accumulating.
Know Your Court Officer: Building a Relationship That Moves Cases Forward
Effective communication among creditors, counsel, and court officers is essential to an efficient recovery process. Through Weltman’s replevin practice, we work closely with clients and court officers to help move vehicle recoveries toward completion, including maintaining communication about anticipated retrieval dates and release arrangements. Keeping court officers informed and addressing logistical issues early can help reduce unnecessary delays once a vehicle has been seized.
In Michigan, a Request and Order to Seize Property, Form MC 19 is generally valid for 90 days.
Although the order may be re-signed and reissued when necessary, attorneys should use that initial period proactively by:
- Identifying the assigned court officer;
- Maintaining consistent communication;
- Confirming accurate vehicle and location information; and
- Staying informed about the officer’s anticipated schedule and recovery procedures.
Building a professional rapport with your court officer can make a difference. Officers who are familiar with your communication style, responsiveness, and payment practices may find it easier to coordinate with you throughout the recovery process.
Michigan’s Garage Keeper’s Lien Act
Michigan’s Garage Keeper’s Lien Act, MCL 570.301 et seq., is another important consideration when addressing vehicles held by storage facilities. Under certain circumstances, a garage keeper may assert a lien for qualifying charges associated with a vehicle, and the Act establishes requirements governing the lien, storage charges, and enforcement process. The Act addresses the rights of prior lienholders and the circumstances under which a vehicle may be retained or sold to satisfy a lien. Because the applicable requirements depend on the circumstances, secured creditors should evaluate asserted charges promptly and determine what action may be necessary to protect their interests and obtain possession of the vehicle.
Tips for Secured Creditors:
- Document the rate: Keep a written document of court officer fees and storage facilities, specifically if vehicles are commonly secured in certain counties.
- Be prompt: Once a vehicle is secured by a court officer, it’s best to secure that vehicle within the first 3-5 days to avoid extra costs and the possibility of the vehicle being considered abandoned.
Ultimately, successful collateral recovery involves more than obtaining a court order or securing possession of a vehicle. It also requires attention to what happens afterward. By prioritizing timely retrieval, monitoring storage-related expenses, and maintaining open communication with the individuals involved in the recovery, creditors can better manage costs and protect the value of their collateral.
Our team is constantly monitoring changes in the industry. If you have questions on this topic or would like to learn more about Weltman’s Collateral Recovery/Replevin Solutions, feel free to connect with Detroit Attorney Tyra Page at any time.
This blog is not a solicitation for business, and it is not intended to constitute legal advice on specific matters, create an attorney-client relationship or be legally binding in any way.
