Iacomini v. Liberty Mut. Ins. Co.

• Decision Date: 07 August 1985
• Docket Number: No. 84-363,84-363
• Citation: 497 A.2d 854,127 N.H. 73
• Parties: Richard IACOMINI, d/b/a Motor Craft of Raymond v. LIBERTY MUTUAL INSURANCE COMPANY.
• Court: New Hampshire Supreme Court

Page 854

497 A.2d 854

127 N.H. 73

Richard IACOMINI, d/b/a Motor Craft of Raymond v. LIBERTY MUTUAL INSURANCE COMPANY.

No. 84-363.

Supreme Court of New Hampshire.

Aug. 7, 1985.

James A. Connor, Manchester, by brief and orally, for plaintiff.

Kelliher & Clougherty, Manchester (Thomas W. Kelliher on brief and orally), for defendant.

DOUGLAS, Justice.

The issue presented in this case is whether a party may subject an owner's interest in an automobile to a lien for repair and storage charges, without the owner's knowledge, acquiesence, or consent. We hold that no common law or statutory lien may be created under such circumstances but that equitable relief for unjust enrichment may be appropriate.

On August 10, 1983, the plaintiff, Richard Iacomini, d/b/a Motor Craft of Raymond, contracted with one Theodore Zadlo for the towing, storage, and repair of a 1977 Mercedes Benz 450-SL. Mr. Zadlo represented himself to be the owner of the car and presented the plaintiff with a New Hampshire registration certificate for the car bearing Zadlo's name. In fact, the car did not belong to Mr. Zadlo but had been stolen in 1981 from a car lot in New Jersey. The defendant, Liberty Mutual Insurance Company, had earlier fulfilled its policy obligations by reimbursing the owner of the stolen car $22,000. It thereby had gained title to the vehicle.

Extensive damage was done to the car after its theft, and Zadlo brought the car to Mr. Iacomini for the purpose of repairing this damage. The plaintiff kept the car at his garage, where he disassembled it in order to give a repair estimate. He apparently never fully reassembled it. Mr. Zadlo periodically returned to the plaintiff's garage to check the status of the repair work.

In October 1983, the Raymond Police Department notified the plaintiff that the Mercedes was a stolen car and also notified Liberty Mutual of the location of the car. Mr. Iacomini at that point moved the vehicle from the lot to the inside of his garage where it remained for the next several months. Liberty Mutual contacted the plaintiff soon after it learned of the vehicle's location to arrange its pick-up. The plaintiff refused to relinquish the car until he had been reimbursed for repair and storage fees.

On December 12, 1983, Liberty Mutual instituted a replevin action in the Manchester District Court seeking return of the car. The action was dismissed for want of jurisdiction, whereupon Liberty Mutual filed the same action in the Auburn District Court on February 22, 1984. On the basis of facts presented at a hearing on April 3, 1984, in the replevin action, the Court (Korbey, J.) found that the plaintiff (defendant in that action) did not have a valid statutory lien since the vehicle was brought to the plaintiff by one other than the owner. The court then ordered Mr. Iacomini to make the vehicle available forthwith to Liberty Mutual with the proviso that Liberty Mutual retain the vehicle in its possession and ownership for a period of at least ninety days in order to allow Mr. Iacomini the opportunity to file an action against Liberty Mutual relating to repairs.

The plaintiff petitioned for an ex parte attachment on April 16, 1984, claiming approximately $10,000, most of which was for storage fees. On or about July 3, 1984, the same court entered judgment in Liberty Mutual's favor finding that "the plaintiff was not authorized or instructed by the legal or equitable owner of the automobile to perform any repair work on the vehicle." On either the day before, or the day of, the hearing, July 3, 1984, the plaintiff filed a Motion to Specify Claim to include an action for unjust enrichment. Liberty Mutual objected to the plaintiff's attempt to amend his cause of action at that date, and the court denied the motion. It also denied the plaintiff's requests for findings that the value of the car had been enhanced by the plaintiff and that denial of the plaintiff's claim would result in unjust enrichment. This appeal followed.

The law generally recognizes three types of liens: statutory, common law, and equitable. 51 Am.Jur.2d Liens § 4, at 146 (1970). Statutory liens for motor vehicle storage and repair are governed by RSA 450:1 and RSA 450:2. These statutes provide as follows:

"For Storage. Any person who maintains a public garage, public or private airport or hangar or trailer court for the parking, storage or care of motor vehicles or aircraft or house trailers brought to his premises or placed in his care by or with the consent of the legal or equitable owner shall have a lien upon said motor vehicle or aircraft or house trailer, so long as the same shall remain in his possession, for proper charges due him for the parking, storage or care of the same."

RSA 450:1 (emphasis added).

"For Labor. Any person who shall, by himself or others, perform labor, furnish materials, or expend money, in repairing, refitting or equipping any motor vehicle or aircraft, under a contract expressed or implied with the legal or equitable owner, shall have a lien upon such motor vehicle or aircraft, so long as the same shall remain in his possession, until the charges for such repairs, materials, or accessories, or money so used or expended have been paid."

RSA 450:2 (emphasis added).

"[I]n the case of a statutory lien, the specified requisites must be strictly observed." Manchester Sav. & etc. Ass'n v. Letendre, 103 N.H. 64, 68, 164 A.2d 568, 572 (1960). By the language of the statute, no lien may be created on an automobile as to the owner without the owner's knowledge, acquiesence, or consent. Under the present circumstances, where the repairman contracted with the possessor of a stolen vehicle for the repair of the car, it is difficult to imagine how the owner could have consented to, or acquiesced in, the repair of the vehicle. The owner in this case had no idea even where the car was located. Whether the plaintiff was reasonable in believing Mr. Zadlo to be the true owner is irrelevant to whether a contract existed between him and Liberty Mutual.

Prior to the passage of a statute on the subject of mechanics' liens (Laws 1925, c. 90), "there existed here and elsewhere a lien at common law in favor of anyone who upon request expended labor and materials upon another's property." Hiltz v. Gould, 99 N.H. 85, 86, 105 A.2d 48, 50 (1954) (citing Shapley v. Bellows, 4 N.H. 347, 353 (1828)). The statutory lien does not supplant, but supplements, the common law mechanics lien, so that we must also look to the rights of the plaintiff under the common law. Hiltz v. Gould, supra at 86, 105 A.2d at 50; Peavy's Serv. Ctr., Inc. v. Associates Fin. Serv. Co. Inc., ...