Unpaid invoice - do I have a possessory lien over equipment loaned to me by client ?

[mangled]

I have a client who is disputing an invoice on the grounds the work was unsatisfactory. Obviously I dispute that but that is not what I am posting about. My client lent me some equipment and is now seeking its return but I am holding off returning it pending payment of the disputed invoice. The contract does not reference the case where equipment is loaned in this way.

There is an agent in the loop as normal and the contract is governed by English Law.

My question is : do I have in law a possessory lien on the equipment loaned to me by the client ?

I would prefer a straightforward reply regarding the legalities to a discussion of the ethics

Thanks for your consideration,

[stek]

From what I remember from my Law Degree, nearly 30 years ago, the two are not connected;

1. They are not happy with your work

2. They want their equipment back

You can't mitigate 1. by contesting 2. as well.

[malvolio]

You have no rights to any loaned kit (Theft by dispossession or something similar, I believe) and that is a separate transaction to a disputed invoice anyway.

Either the invoice is payable or it isn't, in line with the terms of your contract regarding penalties and quality standards. If it isn't, you make a loss and have a good anti-IR35 pointer and at least can offset that loss against CT. But I suggest you negotiate a resolution to the alleged poor delivery and see what transpires.

[BolshieBastard]

I have a client who is disputing an invoice on the grounds the work was unsatisfactory. Obviously I dispute that but that is not what I am posting about. My client lent me some equipment and is now seeking its return but I am holding off returning it pending payment of the disputed invoice. The contract does not reference the case where equipment is loaned in this way.

There is an agent in the loop as normal and the contract is governed by English Law.

My question is : do I have in law a possessory lien on the equipment loaned to me by the client ?

I would prefer a straightforward reply regarding the legalities to a discussion of the ethics

Thanks for your consideration,

Id suggest you speak to a qualified solicitor rather than barrackroom lawyers on here.

[Andy Hallett]

Id suggest you speak to a qualified solicitor rather than barrackroom lawyers on here.

My qualified lawyer would advise the OP to hand the equipment back straight away.

They'd then look at the contract.

[northernladuk]

Item one is a disputed issue around work and payment which is in the contract. This can be disputed as a separate element.
Item two is loaned kit. They loan it to you, you return it upon completion. That is not negotiable or dependant on any other contractual issues. You are holding it to ransom. That's not going to end well.

[SueEllen]

My qualified lawyer would advise the OP to hand the equipment back straight away.

They'd then look at the contract.

My qualified solicitor would ask why I didn't give them the contract to review in the first place to avoid a dispute like this.

They would also tell me to hand back the equipment immediately.

[LisaContractorUmbrella]

The equipment was loaned to you for the duration of the contract and presumably that's what's reflected in the terms of the contract? If so, you must now return the equipment or you will be held in breach of contract.

The unpaid invoice, as others have said here, is a completely separate matter

[Contreras]

The equipment was loaned to you for the duration of the contract and presumably that's what's reflected in the terms of the contract? If so, you must now return the equipment or you will be held in breach of contract.

The unpaid invoice, as others have said here, is a completely separate matter

The OP is more likely to be arrested and held in a police cell.

The client has the balls to dispute an invoice (many will just cough up) so they may just as well report the equipment stolen. It's an easy win for the police too.

I have seen the tactic used with no comeback on the contractor but the invoices were undisputed and the client was very weak both in management and cash flow.

[tractor]

...

My qualified solicitor would say on Item 1 are you properly opted out of the Conduct Regulations? And on item 2 they would say give it back as soon as it is requested.

Given the agent in the middle, it matters not whether the client pay the invoice if you are not properly opted out. Do you have liability insurance? Point the agent in that direction and see how far they get.