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Justice of the Peace Court
Garagekeeper's Liens Rule

(g) Garagekeeper's Liens.

(1)Persons entitled to liens pursuant to 25 Del.C. Ch. 39 may apply to the Court for a judgment and permission to conduct a lienholder's sale in accordance with the forms prescribed by the Court. In addition to the application requirements of 25 Del.C. § 3903(b), the application shall include a copy of any work order(s) related to the item which is the subject of the sale application.

(2) If the claim is contested, the Court shall determine the amount of indebtedness and the right to sale by the garagekeeper.

(3) If a claim for storing or safekeeping any motor vehicle towed at the request of a party other than the owner is contested by the title holder of record or by another lienholder whose lien the Court finds to be valid, the garagekeeper shall be required to prove that the notice requirements of 25 Del.C. § 3907(b) were met. If the garagekeeper fails to so prove, the garagekeeper may be permitted to sell the vehicle, but shall be required to return all proceeds of the sale to the Court for distribution in accordance with the priority determined by the court.

(4) If the claim is not contested or if the garagekeeper is otherwise found to have a right to sale (other than as permitted under subsection(g)(3) of this Rule), the proceeds of the sale shall be applied to discharge of the garagekeeper's lien and the cost of keeping and selling the property. The balance, if any, of the proceeds of the sale shall be deposited not later than 10 days from the date of the sale with the court to be applied by the court to the payment of any lien or security interest to which the property may be subject in the order of their priority, with any remaining proceeds to be paid to the owner or owners of the property sold, but in case such owner or owners cannot be found, such balance shall be turned over to the State Treasurer not later than 60 days from the date of the sale.
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