Patapsco Trailer Service & Sales, Inc. v. Eastern Freightways, Inc.

• Decision Date: 02 May 1974
• Docket Number: No. 231,231
• Citation: 271 Md. 558,318 A.2d 817
• Parties: PATAPSCO TRAILER SERVICE & SALES, INC. v. EASTERN FREIGHTWAYS, INC.
• Court: Maryland Court of Appeals

Page 558

271 Md. 558

318 A.2d 817

PATAPSCO TRAILER SERVICE & SALES, INC. v. EASTERN FREIGHTWAYS, INC.

No. 231.

Court of Appeals of Maryland.

May 2, 1974.

Melvyn J. Weinstock, Baltimore (Elliott J. Pheterson and Weinberger & Weinstock, P.A., Baltimore, on the brief), for appellant.

Samuel S. Smalkin, Baltimore (Rollins, Smalkin, Weston & Andrew, Baltimore, on the brief), for appellee.

Argued before MURPHY, C. J., and SINGLEY, SMITH, DIGGES, LEVINE and ELDRIDGE, JJ.

LEVINE, Judge.

This dispute commenced with a replevin action brought by appellee, Eastern Freightways, Inc. (Eastern), against appellant, Patapsco Trailer Service & Sales, Inc. (Patapsco), for the return of a 1965 Trailmobile refrigerated trailer which initially had been delivered to Patapsco for repairs early in 1970, by its prior owner, E. J. Scannell, Inc. After the repairs were completed, Eastern, which had become the owner of the trailer during the interval, persuaded Patapsco to relinquish possession on June 30, 1970, apparently with the tacit understanding that the repair bill would be paid.

On January 5, 1971, having failed to receive payment, Patapsco sent an employee to the Eastern yard with a tractor. Apparently without Eastern's permission, the employee hooked up the trailer and returned it to the Patapsco premises. Although the record fails to reflect any form of communication between the parties concerning the removal of the trailer from Eastern's yard, it in not contended that any force was employed or that any damages resulted to the premises.

On March 3, 1971, when it claims to have learned of the trailer's location, Eastern filed this replevin action to regain possession, also claiming damages by a later amendment for costs incurred as a consequence of being denied the use of the trailer and seeking its return. These damages totaled $2,385, consisting mainly of the rental cost for a replacement trailer and $400 for a replevin bond. Patapsco defended its action in removing the trailer by relying on a statutory lien, and counterclaimed for the repair bill in the sum of $4,585.71, which had never been paid.

The case was tried in the Superior Court of Baltimore City (Cole J.) where the validity of the counterclaim was conceded, and the only issue to emerge was whether Eastern was entitled to its damages. Judge Cole upheld that claim, concluding that:

'. . . (a)s a result of the unqualified surrender of the truck to Eastern, the lien was lost and Patapsco was not entitled to repossess the vehicle from Eastern in order to re-establish a lien which by its own act it had extinguished.' (emphasis added).

In addition, the court rejected Patapsco's alternative contention that Eastern failed in its duty 'to make reasonable efforts to minimize damages to which Patapsco might be exposed' by unreasonably delaying the commencement of replevin proceedings, and thereby incurring unnecessary rental charges. In this connection, the trial judge, although noting the Eastern was under a duty to mitigate its damages, accepted Eastern's explanation that the delay was caused by difficulty in obtaining a replevin bond. The court said:

'. . . This assertion by Eastern is uncontradicted in the record and the Court finds as a fact that Eastern did not unreasonably delay the institution of replevin proceedings. . . .

The court then entered judgment in favor of Patapsco in the amount of $2200.71, representing the difference between the amount of the repair bill and the damages sustained by Eastern. From that judgment, this appeal is taken.

In this Court, Patapsco apparently does not press the second point decided by the trial court, presumably because it presented an issue of fact. Therefore, we do not reach it. The single question posited for our consideration, then, is whether Patapsco rightfully regained possession of the trailer from the Eastern yard on January 5, 1971. As the court below held, the answer to that question turns on whether Patapsco retained a lien as of that date.

In urging reversal, Patapsco primarily contends that at the time it regained possession of the trailer on January 5, 1971, it still retained the garage keeper's lien which it had previously acquired, when it completed the repairs, pursuant to Maryland Code (1957, 1972 Repl.Vol.) Art. 63, § 41:

'Whenever a motor vehicle or any part thereof is left by the owner or by any other person with his authority, express or implied, in the custody of any corporation, firm or individual, association, or person for repair, rebuilding, storage, or for the purpose of having furnished for or on account of the same any parts, accessories, or tires, the corporation, firm, individual, association or person in whose custody said motor vehicle or part thereof is left for all or any of the purposes aforesaid, shall have a lien on said motor vehicle or part thereof for all charges so incurred, and may lawfully retain the same until said charges have been paid, or until said lien is extinguished or discharged as hereinafter provided. . . . Surrender or delivery of any motor vehicle subject to the lien aforesaid shall operate as a waiver or extinguishment of the same as against third persons without notice thereof, but shall not operate as such waiver or extinguishment as against the owner or as against third persons with notice.' (emphasis added).

In short, the Patapsco argument is that since its lien for repairs had not been waived or extinguished by the unqualified surrender to Eastern, it rightfully recovered the trailer. Hence, it maintains, Eastern was not entitled to possession as long as it refused to pay the repair bill, and therefore was precluded from seeking damages for denial of the trailer's use.

Preliminarily, Patapsco relies upon two cases, Winton Co. v. Meister, 133 Md. 318, 105 A. 301 (1918) and Gordon v. Sullivan, 88 U.S.App.D.C. 144, 188 F.2d 980 (1951). Neither of those cases is apposite, since their factual situations are distinguishable from the case at bar. In Winton, it was contended that a lien had been lost by the removal of the automobile from a repair shop for the specified purpose of having certain upholstery measurements made. In rejecting that claim, our predecessors noted that the car apparently had been removed for only one hour, and was actually in the possession of the garage keeper when replevied by the conditional vendor; furthermore, it had been removed for that brief period only with the understanding that it was not to be surrendered until the repair bill was paid.

In Gordon v. Sullivan, supra, where the repairman had surrendered possession of a car to the conditional vendee who had initially brought it in for repairs, the court held that the lien was revived when the garage keeper subsequently regained possession. Therefore, he could enforce the original lien by detaining the car until the repair bill was paid. In holding that the lien had not been extinguished when the automobile was released, the court said:

'. . . (I)t was merely in a state of suspended animation while he was out of possession, since he could not enforce it during that period. If his regained possession was lawful, the remedy was once more available. (citation omitted).' 188 F.2d at 982.

Nevertheless, that case affords no support for Patapsco's position. First, it involved an automobile rather than a trailer which, for reasons to be stressed later, represents a significant distinction. ¹ Secondly, the garage keeper had surrendered the car upon the customer's express agreement to return it for...