Short answer. No, not by itself. An unpaid seller who has released only part of a shipment may still hold on to the balance until he is paid. The lien is lost only where the part delivery was made in circumstances showing that the seller meant to give up his right of retention.
What the law says
Where an unpaid seller has made part delivery of the goods, he may exercise his right of lien on the remainder, unless such part delivery has been made under such circumstances as to show an intent to waive the lien or right of retention.
Civil Code, Article 1528 — Lien After Part Delivery. Read the full provision →
The lien survives a partial release
Article 1528 of the Civil Code answers the question head-on: Where an unpaid seller has made part delivery of the goods, he may exercise his right of lien on the remainder. A seller's lien is simply the right to keep possession of goods he has sold but not been paid for. Sellers often worry that once the first truckload leaves the yard the whole consignment must follow, because the sale has been partly performed. It has not. Delivery is treated as divisible for this purpose, and what is still in the seller's hands remains security for the price of the whole.
When the release does destroy the lien
The exception is the operative half of the article. The lien falls where the part delivery was made under such circumstances as to show an intent to waive the lien or right of retention. The test is the seller's manifested intention, read from the circumstances rather than from what he says afterwards. Releasing the first consignment while expressly agreeing that the rest will follow on open credit, delivering documents of title without reservation, or handing over the goods after accepting a substituted security can all point that way. A seller who wants to preserve the lien should make the reason for the partial release plain in writing at the time.
What the lien is, and what it is not
The right is one of retention, not of collection. It lets the seller refuse to part with goods still in his possession; it does not entitle him to keep both the goods and the money, nor to treat the sale as cancelled simply because payment is late. It attaches to possession, so once the remaining goods are voluntarily delivered the lien over them is gone. It is also personal to the price of that sale — it is not a general charge over the buyer's property for other debts. Disposing of retained goods carries its own conditions, and a seller who resells carelessly can end up answering for the buyer's loss.
Practical steps for an unpaid seller
If a buyer defaults after taking part of an order, stop further releases before, not after, the next despatch, and record why. Put the position in writing: state that the balance is being retained for non-payment, identify the unpaid invoices, and avoid language that reads like an indulgence or a new credit arrangement. Keep delivery receipts, gate passes and the correspondence that shows what was released and when. Do not assume the lien answers every problem — storage costs, spoilage and the buyer's own claims still have to be dealt with, so take advice on your contract terms before the goods sit in a warehouse for months.