Chattel Liens

Mines and Wells Lien Against Mining Equipment or Oil and Gas Well Equipment: A person who, at the instance of the owner, performs work or labor on, in, or about a mill or machine, either in the alteration or repair of it, or in the operation or working of it, while the mill or machine is used in or about a mine, or mining claim, oil, gas, or other claim or well, as a means of opening up, developing, or mining, or as a means of separating, extracting, or reducing minerals to commercial value, has a lien on the mill or machine, to secure the payment of the amount due for the work. (AS 34.35.130) The lien provided for in this section is prior and preferred over a deed, mortgage, bill of sale, attachment, or other claim whether given before or after the work for which the lien is claimed is started. (AS 34.35.140)

Possessory Lien for Improvements/Chattels Lien: A person who makes, alters, repairs, or labors upon an article of personal property at the request of the owner or lawful possessor has a lien on the property for the just and reasonable charges for the labor performed and material furnished. The person may keep possession of the article until the charges are paid. If the charges are not paid within three months after the labor or materials, or both, are performed or furnished, the person having the lien may sell the article at public auction. (AS 34.35.175) A person who expends labor, skill, or materials upon a chattel, at the request of its owner, reputed owner, or authorized agent of the owner, or lawful possessor of the chattel, has a lien upon the chattel for the contract price of the expenditure, or in the absence of a contract price, for the reasonable worth of the expenditure, for a period of six months from the expenditure, notwithstanding the fact that the possession of the chattel is surrendered to the owner or lawful possessor. (AS 34.35.180) The lien claimant shall, before delivery of the chattel to the owner or the authorized agent of the owner, record a lien notice in the office of the recorder of the recording district where the chattel is situated and in which the labor, skill, and materials are expended on the chattel. (AS 34.35.185) A lien under when recorded in accordance with is superior to and preferred to a lien, mortgage, or encumbrance that attaches to the chattel after the starting of labor or services or the furnishing of the material; and a lien, mortgage, or other encumbrance that attaches before that time, when the person furnishing the material or performing the services did not have notice of the prior lien, mortgage, or encumbrance, or the prior lien, mortgage, or encumbrance was not recorded or filed in the manner provided by law. (AS 34.35.200)

Fish Packers and Processor’s Lien on the Fisheries Plant, Machinery and Equipment: A person who contributes to the preparation of fish or aquatic animals for food, fish, meal, fertilizer, oil, or other article of commerce by furnishing material or labor for it has a lien for the value of the labor and material upon the product or output of the cannery, saltery, or other plant or establishment, for which material or labor was furnished; and the plant or establishment itself, including the houses, wharves, machinery, and equipment of the plant or establishment, for the value of labor and material. (AS 34.35.320) The lien is preferred, prior, and superior to a mortgage, attachment, claim, or demand made or recorded in the recorder's office of the recording district where the property subject to the lien is located after the commencement of the work for which the lien is claimed; and the material is furnished for which the lien is claimed. (AS 34.35.340)

Possessory Lien for Transportation and Storage of Personal Property: The following persons have liens on personal property for their just and reasonable charges for the labor, care, and attention provided and the food furnished, and may retain possession of the property until the charges are paid: a person who is a common carrier, or who, at the request of the owner or lawful possessor of personal property, transports the property from one place to another; and a person who safely keeps or stores personal property at the request of the owner or lawful possessor of the property. (AS 34.35.220) If just and reasonable charges are not paid within three months after the care, attention, and labor is performed, the person having the lien may proceed to sell at public auction. (AS 34.35.225)

The lien statutes of the State of Oregon were the source of many of the statutory liens enacted in Alaska.

Mechanic’s Lien.  Equipment lessors should be aware that to the extent that the equipment may be attached to real property in a manner to constitute a fixture, that a statutory mechanic’s lien may be filed against real property and the improvements and fixtures thereon by a person who performs labor upon, or provides materials for, the construction, alteration or repair of a building or improvement at the request of the owner or the agent of the owner.  AS 34.35.050.    A claim of lien must be filed within 90 days of contract completion or the time that work was ceased.  AS 34.35.068. 

It is important to be aware that the mechanic’s lien has preferred status if the claimant is an individual who actually performed labor on a building or improvement in its original construction.  In that case, the lien is given priority over a prior recorded mortgage or other encumbrance on the property.  AS 34.35.060(c).   An “individual’ actually providing labor is a natural person who is not acting as a contractor, and who is by the owner of real property or employed by a contractor.  Nystrom v. Buckhorn Homes, Inc. 778 P.2d 1115 (Alaska 1989).