Short answer. Yes. Under the Civil Code, a person who has performed work on a movable thing has the right to retain it by way of pledge until payment is made. The repair shop may lawfully hold your watch until you settle your bill.
What the law says
He who has executed work upon a movable has a right to retain it by way of pledge until he is paid.
Civil Code, Article 1731 — Retention Of Repaired Movable. Read the full provision →
The right to retain repaired property
Article 1731 of the Civil Code gives the repair shop a retaining lien — the legal right to hold onto your property until it receives payment for the work performed. This applies to any artisan or contractor who has executed work on a movable: a watchmaker, a car mechanic, a tailor, a furniture restorer. The retention is treated as a pledge, which means the shop is not stealing your property or converting it — it is exercising a security right the law expressly grants. You get the watch back the moment you pay for the repair.
What "by way of pledge" means in practice
Describing the lien as a pledge has a practical meaning. The shop may hold the item but cannot sell or use it freely as its own. Its only lawful recourse is to keep possession until its bill is paid. If you feel the bill is wrong or inflated, the proper move is to dispute the amount — not simply to demand your property back without paying anything. While an honest disagreement over the amount owed is a legitimate concern, withholding payment entirely and demanding return of the item will not succeed under this rule.
This rule protects artisans who cannot otherwise secure payment
Think about why the rule exists. A watchmaker, once he hands the repaired watch back, has lost his only real leverage. He could sue in small claims court, but that takes time and money. The retaining lien lets him secure payment on the spot, at virtually no cost. It balances the transaction: you get the benefit of the work done; he gets the assurance of being paid before releasing the finished product. The law treats this as fair precisely because the work was requested and performed on your property.
What you should do if you disagree with the bill
If the repair shop is charging more than you agreed to, you have options — but they do not include walking away with the watch unpaid. You can negotiate, ask for an itemized receipt, or offer the agreed amount in writing. If the amount is genuinely disputed and you believe the shop's charge is unlawful, you may seek legal assistance to address the billing dispute. What you cannot do is argue that the shop has no right to hold the item at all. Their right to retain it is clear under the law until the obligation to pay has been settled.
Cases citing this provision
These Supreme Court decisions cite the provision above. We list them so you can read them yourself; the summaries of what each decided are not ours to give.
- Optimum Motor Center Corporation vs. Annie Tan etc, G.R. No. 170202, July 14, 2008 — read the decision on LawPhil →
- Johnny K. Lima, et al. vs. Transway Sales Corp., et al, G.R. No. 106770, October 22, 1999 — read the decision on LawPhil →
- M.Y. Intercontinental Trading Corporation, Tedwin T. Uy, and Allianz Marketing and Publishing Corporation vs. St. Mary'S Publishing Corporation, G.R. No. 249715, April 12, 2023 — read the decision on LawPhil →
- Casimiro R. Nadela vs. Engineering and Construction Corporation of Asia, G.R. No. 145259, October 25, 2005 — read the decision on LawPhil →