McCormack v. Air Center, Inc.

1977 OK 192, 571 P.2d 835, 1977 Okla. LEXIS 737
CourtSupreme Court of Oklahoma
DecidedOctober 18, 1977
Docket50487
StatusPublished
Cited by8 cases

This text of 1977 OK 192 (McCormack v. Air Center, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McCormack v. Air Center, Inc., 1977 OK 192, 571 P.2d 835, 1977 Okla. LEXIS 737 (Okla. 1977).

Opinion

BARNES, Justice:

Two questions of first impression are presented in this case: (1) Whether 49 U.S.C., § 1403, et seq., as an exercise of preemptive jurisdiction of the United States Government, supersedes all inconsistent and conflicting State laws governing the proper place for the filing of an instrument which affects title to, or any interest in, an aircraft operated within the United States; and (2) whether the requirement of 42 O.S.1971, § 98, that a written lien statement be filed in order to perfect a lien *836 claimed, pursuant to the provisions of 42 O.S.1971, § 97, is a procedural requirement for perfection of a lien, and not a substantive element of entitlement to a claim of lien.

The facts in this case are undisputed. Defendant-Appellant, Air Center, Inc., engaged in the aviation service and repair business in Oklahoma City, Oklahoma, furnished certain goods, services and materials for the improvement, alteration and repair of a certain aircraft, Aero Commander Aircraft, Model 1121, Serial No. S/N47, Registration No. N222GL. The registered owner of the aircraft failed and refused to pay for those services. Appellant thereafter filed its claim of a statutory mechanic’s and ma-terialman’s lien (42 O.S.1971, § 97) against the subject aircraft within 60 days from the last date upon which goods and services were furnished, by causing the same to be filed at the Title Registry Division, Federal Aviation Administration (FAA), Oklahoma City, Oklahoma, and indexed against the subject aircraft.

Appellant’s lien statement was filed with FAA on October 24, 1974. On October 31, 1974, Appellant filed suit against the registered owner of the aircraft to foreclose its lien thereon. While foreclosure proceedings were pending, Plaintiff-Appellee, W. Howard McCormack, acquired title to the subject aircraft from the registered owner by Bill of Sale dated April 18, 1975, and recorded the same at FAA on April 24, 1975.

Appellee was made a party defendant to the pending foreclosure proceedings, but before answering therein Appellee filed a separate quiet title suit against the Appellant, seeking to remove the purported mechanic’s and materialman’s lien on the subject aircraft from the FAA records as a cloud upon Appellee’s title.

Appellant timely filed its lien statement at the FAA Title Registry, in reliance upon 49 U.S.C., § 1403, but no filing was made by Appellant at the office of the County Clerk of Oklahoma County, where the property was located at the time the lien arose. Despite Appellant’s failure to file its lien in the County Clerk’s office, it is undisputed that Appellant had a lienable claim against the aircraft, pursuant to 42 O.S.1971, § 97.

Both parties filed Motions for Summary Judgment. The Trial Court found there were no matters of dispute as to any material fact or issue and that the cause could be disposed of as a matter of law. The Trial Court concluded that the purported mechanic’s and materialman’s lien in favor of Appellant, dated October 24, 1974, and recorded as FAA Document No. 045657, was invalid and of no legal force and effect, was not a lien perfected under Oklahoma law since not filed with the office of the County Clerk as required by 42 O.S.1971, §§ 97, 98, et seq., and that Appellee was the legal owner of the airplane. The Trial Court quieted title in the Appellee and cancelled and removed as a cloud on the title the Appellant’s mechanic’s and materialman’s lien recorded at FAA.

Appellant brings this appeal asserting under its first proposition that 49 U.S.C., § 1403, is an exercise of the preemptive jurisdiction of the U.S. Government which supersedes all inconsistent or conflicting State laws governing the proper place for filing of an instrument which affects title to or any interest in an aircraft operated within the United States. Appellant contends the Trial Court should have held that the place of filing, as set forth in 42 O.S.1971, § 98, was necessarily superseded and supplanted by the place of filing prescribed by the provisions of 49 U.S.C., § 1403.

Title 49 U.S.C.A., § 1403, provides in material part as follows:

“(a) The Secretary of Transportation shall establish and maintain a system for the recording of each and all of the following:
“(1) Any conveyance which affects the title to, or any interest in, any civil aircraft of the United States;
* * * * * *
“(c) No conveyance or instrument the recording of which is provided for by subsection (a) of this section shall be valid in respect of such aircraft, aircraft engine or engines, propellers, appliances, or *837 spare parts against any person other than the person by whom the conveyance or other instrument is made or given, his heir or devisee, or any person having actual notice thereof, until such conveyance or other instrument is filed for rec-ordation in the office of the Secretary of Transportation: * * *.
“(d) Each conveyance or other instrument recorded by means of or under the system provided for in subsection (a) or (b) of this section shall from the time of its filing for recordation be valid as to all persons without further or other recordation, * * *.” (Emphasis ours)

Appellant relies on a number of cases, including State Securities Company v. Aviation Enterprises, Inc., 355 F.2d 225 (10th Cir. 1966), a case arising from Kansas, in which the Court said:

“By providing a federal system for registration of conveyances and liens affecting the title to aircraft, Congress has preempted that field and state recording statutes are not applicable to such title instruments. However, questions of the validity of such title documents, actual notice, good faith purchaser status, and the like, must be resolved under state law.” (Emphasis ours)

See also the Annotation, Construction and Effect of 49 U.S.C., § 1403, Governing Rec-ordation of Ownership, Conveyances and Encumbrances on Aircraft, 22 A.L.R.3d 1270, which provides at page 1275:

“The view has been taken in some of the cases construing the provisions of 49 U.S.C. § 1403 and the similar provisions of the Civil Aeronautics Act of 1938, that Congress by enacting a federal statute dealing with the recordation of conveyances and encumbrances affecting aircraft has pre-empted the field and has consequently supplanted state statutes as they might affect the recording of such interests.”

We think there is merit to Appellant’s argument. We find persuasive the case of Texas National Bank of Houston v. Aufderheide, 235 F.Supp. 599, 603 (E.D.Ark.1964), in which the court stated:

“There is no question that the Congress by the statutory enactments which have been mentioned has preempted the field of registration and recording of title instruments affecting commercial aircraft, Pacific Financial Corporation v. Central Bank & Trust Co.,

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Bluebook (online)
1977 OK 192, 571 P.2d 835, 1977 Okla. LEXIS 737, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mccormack-v-air-center-inc-okla-1977.