Conseco Finance Servicing Corp. v. Friendly Village of Indian Oaks

• Decision Date: 23 August 2002
• Docket Number: No. 10A04-0110-CV-472.,10A04-0110-CV-472.
• Citation: 774 N.E.2d 87
• Parties: CONSECO FINANCE SERVICING CORP., formerly known as Green Tree Financial Servicing Corporation, Appellant, v. FRIENDLY VILLAGE OF INDIAN OAKS, Appellee.
• Court: Indiana Appellate Court

774 N.E.2d 87

CONSECO FINANCE SERVICING CORP., formerly known as Green Tree Financial Servicing Corporation, Appellant, v. FRIENDLY VILLAGE OF INDIAN OAKS, Appellee.

No. 10A04-0110-CV-472.

Court of Appeals of Indiana.

August 23, 2002.

William F. Thompson, Indianapolis, IN, Attorney for Appellant.

C. Allan Hoffer, New Albany, IN, Attorney for Appellee.

OPINION

NAJAM, Judge.

STATEMENT OF THE CASE

In March 2000, Conseco Finance Servicing Corporation ("Conseco"), formerly known as Green Tree Financial Servicing Corporation, filed a replevin action against Friendly Village of Indian Oaks ("Friendly Village") seeking, among other things, possession of a mobile home in which Conseco held a secured interest. Friendly Village filed its answer and later filed a counterclaim against Conseco asserting a statutory lien on the mobile home pursuant to Indiana Code Section 16-41-27-29. Following a bench trial, the court ruled against Conseco on its claim, in favor of Friendly Village on its counterclaim and awarded Friendly Village $1,614 in damages. This appeal ensued.

ISSUES

Conseco raises one issue for our review, which we separate into the following three issues:

1. Whether Friendly Village acquired a valid mobile home park owner's lien under Indiana Code Section 16-41-27-29.

2. Whether Conseco's perfected security interest takes priority over Friendly Village's statutory lien.

3. Whether the trial court erred when it awarded damages to Friendly Village.

We affirm in part, reverse in part, and remand with instructions.

FACTS AND PROCEDURAL HISTORY

In July 1997, Hilda Coghill entered into an installment contract and security agreement with Conseco for the purchase of a mobile home. Conseco perfected its security interest in Coghill's mobile home when it recorded its lien on the certificate of title. Then on August 15, 1997, Coghill signed a month-to-month lease agreement with Friendly Village, which operated a mobile home park. Coghill leased lot # 496 from Friendly Village and agreed to pay a monthly lot rent. On August 6, 1997, Conseco sent Friendly Village notice by certified mail that it held a security interest in Coghill's mobile home and requested that Friendly Village notify it if the home became vacant or rent was delinquent.

On or about January 1999, Coghill vacated the mobile home, and her lot rent became delinquent. At some point, Friendly Village notified Conseco that Coghill had vacated the home and that lot rent was due. At trial, the parties stipulated that Friendly Village did not notify Conseco of either the vacancy or the delinquent lot rent by certified mail. Rather, Friendly Village sent invoices by facsimile to Conseco requesting rent payments.

In March 1999, Coghill filed for bankruptcy, and Conseco obtained an order from the bankruptcy court granting relief from the stay of proceedings and allowing Conseco to seek possession of the mobile home. Also in March 1999, Conseco began making payments to Friendly Village toward Coghill's delinquent rent. At trial, the parties disputed whether Conseco had made those payments consistently, but it is undisputed that Conseco's last payment was made in February 2000.¹

In March 2000, Coghill defaulted on her loan with Conseco, and Conseco sought to remove the mobile home from the park for purposes of sale. Friendly Village did not allow Conseco to remove the mobile home because of delinquent lot rent and wet weather. In late March 2000, Conseco filed its replevin action seeking judgment for possession of the mobile home and damages for loss of use of funds as a result of Friendly Village's alleged unlawful retention of the home. Friendly Village filed an answer and affirmative defenses claiming that, under Indiana Code Section 16-41-27-29, it had acquired a lien by its possession of the home and that its lien is superior to Conseco's secured interest. In its prayer for relief, Friendly Village requested that it be allowed to enforce its lien rights prior to Conseco's repossession of the mobile home.

In May 2000, Conseco posted a surety bond and took prejudgment possession of the mobile home. In June 2000, Conseco removed the mobile home from the park and sold it for $26,011, with $22,710 in net proceeds. Thereafter in March 2001, Friendly Village filed a counterclaim against Conseco reasserting its statutory lien pursuant to Indiana Code Section 16-41-27-29. Friendly Village again alleged that its statutory lien takes priority over Conseco's security interest and that because Conseco had repossessed the mobile home without paying the outstanding statutory lien amount, Friendly Village is entitled to damages equal "to the value of the mobile home."²

At trial, Conseco claimed that the three-month delay in securing the sale of the home resulted in a loss of use of those funds to Conseco in the amount of $652.91. Conseco also claimed a loss on Coghill's account due to a further depreciation in the value of the home from the delay in repossession and sale. Conseco asked for $1,221.41 in total damages at trial. Friendly Village claimed that because Conseco took pre-judgment possession of the home without paying delinquent lot rent and other fees, it was entitled to $3,836.30 in damages. The trial court found against Conseco on its complaint and for Friendly Village on its counterclaim. The court awarded Friendly Village $1,614 in damages, plus post-judgment interest. Conseco filed a motion to correct error, which the court denied. Conseco now appeals.

DISCUSSION AND DECISION

Standard of Review

Neither party requested special findings, and the trial court made no findings sua sponte. Thus, Conseco appeals from a general judgment. A general judgment will be affirmed if it can be sustained upon any legal theory consistent with the evidence. Shelby Eng'g Co., Inc. v. Action Steel Supply, Inc., 707 N.E.2d 1026, 1027 (Ind.Ct.App.1999). In making that determination we neither reweigh the evidence nor judge the credibility of witnesses. Id. Rather, we consider only the evidence most favorable to the judgment together with all reasonable inferences to be drawn therefrom. Id. In reviewing a general judgment, we must presume the trial court correctly followed the law. Perdue Farms, Inc. v. Pryor, 683 N.E.2d 239, 240 (Ind.1997). A general judgment will be affirmed unless the uncontradicted evidence leads to a conclusion opposite that reached by the trial court. Town of Avon v. Harville, 718 N.E.2d 1194, 1198 (Ind.Ct. App.1999), trans. denied.

Issue One: Mobile Home Park Owner's Lien

Conseco first asserts that the trial court's judgment is contrary to law because Friendly Village did not acquire a valid lien against Coghill's mobile home pursuant to Indiana Code Section 16-41-27-29. Specifically, Conseco contends that Friendly Village did not comply with subsection (b) of the statute and notify Conseco by certified mail that the mobile home had been vacated or that lot rent had become delinquent. Conseco claims that the mobile home park owner must meet the requirements of subsection (b) in order for the park owner to acquire a valid lien.

Indiana Code Section 16-41-27-29 provides:

(a) Subject to subsection (b), the owner, operator or caretaker of a mobile home park has a lien upon the property of a guest in the same manner, for the same purposes, and subject to the same restrictions as an innkeeper's lien or a hotel keeper's lien.[³]

(b) With regard to a lienholder:

(1) if the property has a properly perfected secured interest under IC 9-17-6-7; and

(2) the lienholder has notified the owner, operator, or caretaker of the mobile home park of the lienholder's lien by certified mail;

the maximum amount of the innkeeper's lien may not exceed the actual late rent owed for not more than a maximum of sixty (60) days immediately preceding notification by certified mail to the lienholder that the owner of the property has vacated the property or is delinquent in the owner's rent.

(c) If the notification to the lienholder under subsection (b) informs the lienholder that the lienholder will be responsible to the owner, operator, or caretaker of the mobile home park for payment of rent from the time notice is received until the mobile home is removed from the park, the lienholder is liable for the payment of rent that accrues after the notification.

Additionally, Indiana Code Section 9-17-6-7 states:

A security agreement covering a security interest in a manufactured home that is not inventory held for sale may only be perfected by indicating the security interest on the certificate of title or duplicate certificate of title for the manufactured home issued by the bureau.

It is well settled that liens may be created by statute or by express or implied contracts. Sowers v. Covered Bridge Tree Serv., 603 N.E.2d 165, 168 (Ind.Ct.App. 1992), aff'd, 621 N.E.2d 1111 (Ind.1993). When a lien is created by statute, its operation and extent, and persons entitled to the lien, "`are to be determined by the language of the statute.'" Id. (quoting 18 INDIANA LAW ENCYCLOPEDIA, Liens § 2 (1959)). When deciding questions of statutory interpretation, appellate courts need not defer to a trial court's interpretation of the statute's meaning. Elmer Buchta Trucking, Inc. v. Stanley, 744 N.E.2d 939, 942 (Ind.2001). Rather, we independently review the statute's meaning and apply it to the facts of the case under review. Id. When a statute is clear and unambiguous on its face, this court may not interpret the statute. South Bend Tribune v. South Bend Comm. School Corp., 740 N.E.2d 937, 938 (Ind.Ct.App.2000) (citations omitted). Instead we must hold the statute to its clear and plain meaning. Id.

Indiana Code Section 16-41-27-29 is unambiguous and, therefore, not subject to interpretation. Subsection (a) of the statute clearly states that the owner of a mobile home park has a lien upon the property of a guest but that the lien is "[s]ubject to subsection (b)." Then subsection (...