National City Bank v. Jim Roberts Buick, Inc.

494 N.E.2d 470, 24 Ohio Misc. 2d 18, 24 Ohio B. 340, 1986 Ohio Misc. LEXIS 45
CourtWilloughby Municipal Court
DecidedMarch 18, 1986
DocketNo. 85 CVH 2308
StatusPublished
Cited by1 cases

This text of 494 N.E.2d 470 (National City Bank v. Jim Roberts Buick, Inc.) is published on Counsel Stack Legal Research, covering Willoughby Municipal Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
National City Bank v. Jim Roberts Buick, Inc., 494 N.E.2d 470, 24 Ohio Misc. 2d 18, 24 Ohio B. 340, 1986 Ohio Misc. LEXIS 45 (Ohio Super. Ct. 1986).

Opinion

DeVinne, J.

In this case the plaintiff, National City Bank, sought to replevy a 1982 Buick automobile, owned by Stanton E. Deeley, from the defendant, Jim Roberts Buick, Inc., together with damages for its detention, while the defendant counterclaimed for repairs thereto and for the rental fee of a substitute automobile leased to the owner while such repairs were in progress.

The matter was submitted to the court on March 10, 1986 for its decision upon the pleadings, the parties’ joint stipulation of facts, their supplemental stipulation of facts, and their respective briefs with accompanying affidavits submitted in support of their respective motions for summary judgment, which motions were withdrawn.

The pertinent facts are:

1. At the time the defendant came into possession of said vehicle the owner thereof was indebted to the plaintiff in the amount of $4,857.38 and such indebtedness was evidenced by a note and a security agreement, the lien for which was duly recorded and noted upon the owner’s certificate of title to said vehicle;

2. Pursuant to a prior order of this court and while this action was pending said vehicle was sold at auction for $4,100 because of the owner’s default under said security agreement;

3. When the defendant came into possession of the vehicle, which was subsequent in time to said security agreement, it had been damaged and towed to the defendant’s garage where repairs to it were made in a total amount of $2,139.62 at the owner’s request, but without the plaintiff’s knowledge. Such repairs enhanced its value between $1,800 and $2,000;

4. While said vehicle was being repaired its owner leased a substitute vehicle from the defendant. This, too, was without the plaintiff’s knowledge. The rental fee therefor was $1,122 and the plaintiff received no benefit therefrom; and

5. Neither the repair bill nor the rental fee has been paid by the owner.

The plaintiff having waived any claim to damages for the vehicle’s wrongful detention, the matter was submitted to the court solely on the question of the merits of the defendant’s counterclaim for either the cost of repairs or the enhancement to the vehicle as the result thereof and its claim for the rental of the substitute automobile.

At the outset the court notes that the defendant has a common-law artisan’s lien upon the vehicle in question for the reasonable value of its repairs thereto. See 51 Ohio Jurisprudence 3d (1984) 540, Garages, Section 26. However, said lien is subordinate to that of the plaintiff created by the security agreement in question. See Cleveland Auto Top & Trimming Co. v. American Finance Co. (1931), 124 Ohio St. 169, the syllabus of which states:

“1. An artisan, who furnishes materials or performs labor for the repair of chattel property, has a common-law lien upon such chattel property for the reasonable value of such labor and materials.
“2. Such lien is not extinguished by removal of such chattel property from the possession of the lienholder without his consent.
“3. The common-law lien of such artisan is subordinate to the lien of a valid chattel mortgage, properly executed and filed prior to the performance of labor or furnishing of materials by such artisan.
[20]*20“4. An action in replevin will lie against such artisan on behalf of such chattel mortgagee.”

Clearly, then, the plaintiff may, as was done here, replevy the vehicle and sell it upon the owner’s default under said security agreement. But what are the rights of the respective parties to the proceeds realized on such sale, viz., $4,100? Such question is one involving lien priorities. As early as 1923 the Ohio Supreme Court held that the security agreement takes precedence over the artisan’s lien. See Metropolitan Securities Co. v. Orlow (1923), 107 Ohio St. 583, the second paragraph of the syllabus of which reads:

“Where such chattel property is incumbered by a valid chattel mortgage, properly executed and filed, according to the statutes of Ohio in such cases made and provided, such record is constructive notice to persons who thereafter perform labor or furnish materials in repairing such chattel property, and the common-law lien of such artisan is subordinate to the lien of the mortgagee thereon.”

As previously noted, defendant’s lien is a common-law one. Plaintiff’s lien, however, arises by statute and is governed by R.C. 4505.13, found in Ohio’s automobile certificate of title law, which at all times applicable herein provided, in part, as follows:

“* * * Any security agreement covering a security interest in a motor vehicle * * * [is] valid as against the creditors of the debtor, whether armed with process or not, and against subsequent purchasers, secured parties, and other lienholders or claimants.”

However, the inquiry does not stop here. Since automobiles are “goods” within the ambit of the Uniform Commercial Code, it is necessary that consideration be given to that portion thereof, namely, R.C. 1309.29, which reads as follows:

“When a person in the ordinary course of his business furnishes services or materials with respect to goods subject to a security interest, a lien upon goods in the possession of such person given by statute or rule of law for such materials or services takes priority over a perfected security interest unless the lien is statutory and the statute expressly provides otherwise.”

Next, the court must inquire into the interaction between R.C. 4505.13, which gives rise to plaintiff’s statutory lien, and R.C. 1309.29, which perforce includes defendant’s common-law artisan’s lien. The answer to such latter inquiry is found in the syllabus of the Ohio Supreme Court in the case of Commonwealth Loan Co. v. Berry (1965), 2 Ohio St. 2d 169, which states:

“The specific priority granted in Section 4505.13, Revised Code, to liens noted upon the certificate of title of a motor vehicle makes such liens valid against other liens and prevails over the general provision of Section 1309.29, Revised Code, relating to artisan’s liens. * * * See Snyder v. Ryan (1965), 2 Ohio St. 2d 171 [31 O.O.2d 322].”

In the light of the foregoing analysis it is evident that plaintiff’s statutory lien is superior to defendant’s common-law artisan’s lien. And, since the sale of the vehicle in question produced less than the amount due the plaintiff under its security agreement, no funds are available for distribution to the defendant to apply on its claims. Further, the court observes that no artisan’s lien exists in defendant’s favor for the rental fee for a substitute automobile nor has the defendant cited any law to the contrary.

Defendant seeks to escape the application of the foregoing legal principles on the basis that the repairs enhance the value of the vehicle and produced a windfall to the plaintiff upon its sale which it is inequitable for the plaintiff to retain. Such assertion is founded on the theory of quasi-contract which is [21]*21not a true contract, express or implied, but is “an obligation imposed by law to promote justice and to prevent fraud or wrongdoing.” 18 Ohio Jurisprudence 3d (1980) 266, Contracts, Section 342.

In support thereof the defendant cites the case of Kazmier v.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

In Re Cox
133 B.R. 198 (N.D. Ohio, 1991)

Cite This Page — Counsel Stack

Bluebook (online)
494 N.E.2d 470, 24 Ohio Misc. 2d 18, 24 Ohio B. 340, 1986 Ohio Misc. LEXIS 45, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-city-bank-v-jim-roberts-buick-inc-ohmunictwilloug-1986.