Commonwealth Loan Co. v. Berry, 38823

• Decision Date: 19 May 1965
• Docket Number: No. 38823,38823
• Citation: 2 Ohio St.2d 169,207 N.E.2d 545
• Parties: , 31 O.O.2d 321, 2 UCC Rep.Serv. 749 COMMONWEALTH LOAN CO., Appellee, v. BERRY; Downtown Lincoln-Mercury Co., Appellant.
• Court: Ohio Supreme Court

Page 169

2 Ohio St.2d 169

207 N.E.2d 545, 31 O.O.2d 321, 2 UCC Rep.Serv. 749

COMMONWEALTH LOAN CO., Appellee, v. BERRY; Downtown Lincoln-Mercury Co., Appellant.

No. 38823.

Supreme Court of Ohio.

May 19, 1965.

Syllabus by the Court

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. (Sections 1309.29, 1333.41 and 4505.13, Revised Code, construed.)

The plaintiff brought its action to replevin a motor vehicle upon which it had an admittedly valid chattel mortgage. The lien of this valid chattel mortgage was recorded upon the face of the certificate of title. Defendant Downtown Lincoln-Mercury Company in this action was in possession of the vehicle and claimed to be entitled to retain possession by virtue of its garageman's lien resulting from its furnishing of labor and materials for the repair of such automobile.

It is stipulated that the sole issue involved is the priority of the liens of the respective parties. It is admitted that plaintiff's lien is superior unless the enactment of the Uniform Commercial Code has altered the established law of Ohio as to the priority of liens upon motor vehicles.

Both the trial court and the Court of Appeals held for the plaintiff, and the cause is before this court pursuant to the allowance of a motion to certify the record.

Marvin J. Barsman, Cincinnati, for appellee.

Lee B. Kasson, Jr., Cincinnati, for appellant.

PAUL W. BROWN, Judge.

The pertinent section of the Uniform Commercial Code is Section 1309.29, Revised Code, effective July 1, 1962, which provides:

'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 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.'

The lien referred to in Section 1309.29, Revised Code, is the artisan's lien. The artisan's lien prior to the enactment of Section 1333.41, Revised Code, was a common-law lien. That section makes the artisan's lien a statutory lien but expressly excludes motor vehicles from its operation. It follows that the artisan's lien to the extent that it affects motor vehicles is still a common-law lien and, hence, does not fall within the exception in Section 1309.29, Revised Code.

The language of Section 4505.13, Revised Code, specifically makes a security agreement conveying a security interest in an automobile, if a notation of such instrument has been made by the Clerk of the Court of...