BLUE SKY TELLURIDE, L.L.C. v. INTERCONTINENTAL JET SERVICE CORP.

2014 OK CIV APP 39, 328 P.3d 1223, 2014 WL 1821000, 2014 Okla. Civ. App. LEXIS 18
Court of Civil Appeals of Oklahoma·Decided January 21, 2014·No. 110652·Published·Cited by 3 cases

Opinion

BAY MITCHELL, Judge.

{1 Defendant/Appellant Intercontinental Jet Service Corp. ("IJS") seeks review of an order granting summary judgment in favor of Third-Party Defendant/Appellee Harley Davidson Credit Corp. ("Harley Davidson"). IJS also appeals the trial court's order denying its motion for new trial/reconsideration.

T2 Plaintiff/Appellee Blue Sky Telluride, L.L.C,. ("Blue Sky") brought a replevin action alleging IJS wrongfully retained possession of a Mitsubishi MU-2 aircraft ("aircraft") owned by Blue Sky and deliveredto IJS for the limited purpose of inspection. 1 Blue Sky asserted IJS exceeded the seope of the inspection and performed unauthorized repairs on the aircraft. IJS filed its answer and counterclaim admitting it retained possession of the aircraft but that it did so to ensure payment by Blue Sky for the repairs it performed with Blue Sky's consent. All parties agree the aircraft was delivered to IJS on or around December 5, 2008. In its counterclaim, IJS claimed it holds a "mechanic's lien" filed with the Federal Aviation Administration ("FAA") and sought to foreclose the lien and sell the aircraft. IJS also included a third-party claim against Harley Davidson Credit Corp. alleging its lien was superior to any right, title, or interest held by Harley Davidson.

13 Harley Davidson is the successor in interest to Eaglemark Savings Bank, which originally financed the purchase of the subject aircraft. Eaglemark, now Harley Davidson, filed its purchase money security interest in the aircraft with the FAA on June 21, 2006, and the document was recorded on July 27, 2006. I1JS filed its lien with the FAA covering the value of the services and repairs rendered on March 23, 2009, and the doeument was recorded on April 6, 2009.

T4 Blue Sky filed a motion for partial summary judgment against the counterclaim of IJS, arguing the statute of limitations period had expired for IJS to foreclose its lien pursuant to 42 0.8. §§ 95 and 100. Harley Davidson also filed a summary judgment motion arguing IJS did not hold a common law possessory lien as it claimed, and, even if it did, such lien was governed by 42 0.8. § 91 and subject to Harley Davidson's senior lien. Harley Davidson also argued that pursuant to 42 O.S. §§ 95 and 100 the statute of limitations had run barring IJS from enfore-ing its lien. In separately filed responses, IJS asserted it retained possession of the aireraft and held a common law possessory lien, the foreclosure of which was not time-barred because the statute of limitations on the underlying debt had not yet lapsed.

T 5 On March 6, 2012, the trial court granted summary judgment in favor of Harley Davidson. The journal entry referenced a previously entered and signed minute order, 2 *1226 which included findings and conclusions of law stating, prior to 2009, liens on aircraft were covered by 42 O.S8. § 91. Statutory changes in the definition of personal property moved airplanes to 42 O.S. § 91A and subsection (B)(8) required such liens to be foreclosed within sixty (60) days of filing. According to the undisputed facts of the parties, IJS filed its lien with the FAA on March 23, 2009 but did not seek to foreclose its lien until the filing of its answer and counterclaim to Blue Sky's original petition on May 6, 2010. The trial court held that "continued and uninterrupted possession [did] not 'secure' a lien past the SOL."

T6 IJS filed a motion for new trial/reconsideration on February 17, 2012 arguing 42 O.S8.2011 § Q1A(B)(8) did not apply to the facts in this case and that the statute of limitations on its common law possessory lien had not yet expired. IJS also argued its common law possessory lien was superior to Harley Davidson's purchase money security interest. IJS further asserted summary judgment was not appropriate because Harley Davidson would be unjustly enriched by IJS's repairs and any statute of limitations was "equitably tolled" due to settlement negotiations. The trial court denied IJS's motion to reconsider from which this appeal was taken. Consistent with 12 0.8.2011 § 951(b), IJS's amended petition in error presented the same issues as its motion for new trial

1 7 During the course of litigation and with the trial court's approval, Blue Sky sold the aircraft to an unrelated party in an arms length transaction for $525,000. IJS and Harley Davidson agreed to release their liens on the aircraft and attached them to the sale proceeds. $125,000 of the sale proceeds was disbursed to Harley Davidson, and the remaining $400,000 remains in escrow. Blue Sky did not assert any claims against Harley Davidson. Blue Sky's claims against IJS remain outstanding. This appeal is properly before this Court as the trial court invoked 12 0.8.2011 § 994(A) by declaring its grant of summary judgment in favor of Harley Davidson was intended to be a final order terminating all claims between IJS and Harley Davidson and there was no just reason for delay of any appeal.

STANDARD OF REVIEW

T8 An appeal from the denial of a motion for a new trial is reviewed under the abuse of discretion standard 3 Head v. McCracken, 2004 OK 84, ¶ 2, 102 P.3d 670, 674. However, because the correctness of the trial court's denial of a new trial depends on the propriety of the underlying grant of summary judgment, we must determine whether that decision was proper. Id.

T 9 Whether the trial court's entry of summary judgment was proper is a question of law we review de mnovo. Manley v. Brown, 1999 OK 79, ¶ 22, 989 P.2d 448, 455. In a de movo review, we have plenary, independent, and non-deferential authority to determine whether the trial court erred in its application of the law and whether a dispute exists as to any genuine issue of material fact. Kluver v. Weatherford Hosp. Auth., 1993 OK 85, ¶ 14, 859 P.2d 1081, 1084. Like the trial court, we examine the pleadings and summary judgment evidentiary materials submitted by the parties to determine if a genuine issue of material fact is in dispute. Carmichael v. Beller, 1996 OK 48, ¶ 2, 914 P.2d 1051, 1053. In so doing, we view the facts and all reasonable inferences arising therefrom in the light most favorable to the non-movant. Id.

ANALYSIS

AIRCRAFT LIENS

T10 Security interests in most goods are governed entirely by state law. *1227 However, given the interstate nature of aircraft, Congress passed the Federal Aviation Act ("Act") of 1958, which directed the Seere-tary of Transportation to establish and maintain a system for recording "[alny convey ance which affects the title to,; or any interest in, any civil aireraft of the United States." 49 U.S.C.A. § 44107(a) (previously 49 U.S.C.A.App. § 1408). The purpose behind the Act was to create "a central clearing house for recordation of titles so that a person, wherever he may be, will know where he can find ready access to the claims against, or liens, or other legal interests in an aircraft." Philko Aviation, Inc. v. Shacket, 462 U.S. 406, 411, 103 S.Ct. 2476, 76 L.Ed.2d 678 (1983) (internal citations omitted). The Act requires recording with the FAA of every transfer of any interest in a civil aircraft in this country. Id., 462 U.S. at 410, 103 S.Ct. 2476; e.g.

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BLUE SKY TELLURIDE, L.L.C. v. INTERCONTINENTAL JET SERVICE CORP., 2014 OK CIV APP 39, 328 P.3d 1223, 2014 WL 1821000, 2014 Okla. Civ. App. LEXIS 18 (Okla. Ct. App. 2014).

2014 OK CIV APP 39 (BLUE SKY TELLURIDE, L.L.C. v. INTERCONTINENTAL JET SERVICE CORP.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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BLUE SKY TELLURIDE, L.L.C. v. INTERCONTINENTAL JET SERVICE CORP.
2014 OK CIV APP 39 (Court of Civil Appeals of Oklahoma, 2014)