Ehrlich v. Chapple

228 Ill. App. 293, 1923 Ill. App. LEXIS 222
Appellate Court of Illinois·Decided March 13, 1923·No. Gen. No. 28,112·Published·Cited by 2 cases

Opinion

Mr. Justice Gridley

delivered the opinion of the court.

In an action of trover for damages for the alleged conversion of a certain automobile truck, tried de novo before a jury in the county court of Cook county on appeal from a judgment rendered by a justice of the peace in favor of plaintiff, the county court at the conclusion of all the evidence instructed the jury to return a verdict finding the defendant not guilty and, such verdict being returned, entered judgment against plaintiff for costs, and this appeal followed.

One James Valino, engaged in the expressing business, was the owner of the truck. While using it in his business in October, 1921, it broke down in the Village of Melrose Park in said county and was towed to defendant’s nearby garage, where defendant, at Valino’s request, made repairs necessary to enable the truck to run, and enhancing its value, to the amount of about $25. Valino did not pay defendant for the repairs and defendant refused to deliver back the truck until his just bill therefor was paid, he claiming a lien on the truck to that extent.

During the month of September, 1921, plaintiff became the owner by written assignment of a valid chattel mortgage on the truck, which, on August 27, 1921, Valino had executed to secure an indebtedness of $175, evidenced by certain of his promissory notes. On being informed by Valino that the truck was being held by defendant for the repair bill, plaintiff telephoned defendant that he held a chattel mortgage on the truck which was a prior lien to that of defendant, and demanded that the truck be turned over to him. Defendant refused to do this until his bill for repairs was paid, and thereafter plaintiff, on October 12,1921, commenced the present action before the justice of the peace in replevin, and, the truck not being taken under the writ, he thereafter proceeded in trover. He did not specifically authorize the making of the repairs in question, and was not informed that Valino had contracted for them until after they had been completed. •

The chattel mortgage contained the provision that the mortgagor might retain possession of the truck at Ms expense until default was made in the payment of any of the notes, but that if such default was made, or if the mortgagee should feel insecure, etc., all of the notes should, at his option and without notice, become at once due, and he should have the right to take possession of the truck, and contained the further provision that the mortgagor should keep the property “in first-class condition at all times at the expense of the mortgagor.”

In their printed arguments here filed counsel for both parties agree that the only question presented is one of law, wMch is, in substance, whether defendant’s lien for the necessary repairs on the truck, which were ordered by Valino, is superior to the lien of the prior chattel mortgage on the truck.

In 1 Jones on Liens, sec. 731, it is said: “By the common law, a workman, who by his sMll and labor has enhanced" the value of a chattel, has a lien on it for his reasonable charges, provided the employment be with the consent, either express or implied, of the owner. * * * Except as declared by modern statutes, this lien rests upon immemorial recognition, or, in other words, upon the common law. It exists in favor of every bailee for Mre who takes property in the way of his trade and occupation, and by his labor and skill imparts additional value to it.” And it is the general rule that such lien can only be asserted, as against a third party, where the chattel is retained in the possession of the lien claimant or his agent. (1 Jones on Liens, secs. 20-24; Rehm v. Viall, 185 Ill. App. 425.) Whether such lien takes precedence over that of a previously recorded chattel mortgage depends upon the circumstances attending its creation. (1 Jones on Liens, sec. 744.) While the mortgagor cannot by contract create such a lien so as to give it priority over that of a previously recorded chattel mortgage, the mortgagee’s authority for its creation may be implied, and such implication may arise where the chattel is to be retained and used by the mortgagor, and is of such a character as may require the making of ordinary repairs thereto as a necessary incident to its reasonable and customary use by the mortgagor. (1 Jones on Liens, sec. 744; Rehm v. Viall, supra; Hammond v. Danielson, 126 Mass. 294; Watts v. Sweeney, 127 Ind. 116; Drummond Carriage Co. v. Mills, 54 Neb. 417; Ruppert v. Zang, 73 N. J. L. 216.) In the chattel mortgage given by Yalino it was not only provided that he, as mortgagor, might retain possession of the truck, but also that he should keep it “in first-class condition at all times” at his expense,. We think that under such provision it must be held that Yalino had been given sufficient authority by the mortgagee to contract with defendant for the repairs in question, made necessary by the temporary breakdown of the truck and in order that it might be kept in first-class running condition. And, under the authorities cited, we also think that defendant had a common-law lien on the truck as security for the payment to him of his reasonable charges for said repairs, which lien was superior to that of said prior chattel mortgage.

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Ehrlich v. Chapple, 228 Ill. App. 293, 1923 Ill. App. LEXIS 222 (Ill. Ct. App. 1923).

228 Ill. App. 293 (Ehrlich v. Chapple) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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