Caterpillar Financial Services Corp. v. Burroughs Diesel, Inc.
125 So. 3d 659
| Miss. Ct. App. | 2013Background
- Cat Financial sued for immediate possession of a Caterpillar excavator in a replevin action in Jones County; Burroughs Diesel asserted a mechanic's lien and sought possession under the lien.
- Walters leased the excavator to Walters; Walters defaulted in 2008, and Cat Financial terminated the lease but could not locate the excavator.
- Burroughs took possession in 2008–2009, repaired the excavator and began storing it; Burroughs later asserted a mechanic’s lien for repairs and storage.
- Cat Financial filed an amended replevin complaint; Burroughs filed a separate mechanic’s lien action in chancery, later transferred to circuit court.
- Bankruptcy proceedings stayed the replevin action; after abandonment of the excavator to Cat Financial, Burroughs continued possession and storage.
- Circuit court granted summary judgment for Burroughs on the mechanic’s lien and storage, and authorized sale of the excavator; the circuit court and county court judgments were appealed and consolidated for review.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Burroughs’s storage lien awards were proper | Cat Financial argues storage lien under 85-7-251 requires strict statutory compliance. | Burroughs asserts storage costs were recoverable under the lien and related statutes. | Storage costs reversed; remand for proper analysis under statute. |
| Whether Burroughs is entitled to a mechanic’s lien for repairs | Cat Financial contends Burroughs lacked owner authorization and evidence of reasonableness/necessity of repairs. | Burroughs argues owner authorization implied or explicit and repairs were reasonably necessary. | Material factual disputes exist; circuit court’s summary judgment on the lien is reversed and remanded. |
| Whether the circuit court properly granted summary judgment for Burroughs | Cat Financial contends there were genuine issues of material fact and no statutory basis for fees. | Burroughs maintained entitlement to summary judgment for lien and storage. | Summary judgment on attorney’s fees reversed; lien-related issues remanded; |
| Whether the court properly handled priority/transfer and consolidation | Cat Financial argues priority jurisdiction and concurrent courts; the chancery-to-circuit transfer was improper. | Burroughs contends proper jurisdiction existed and ancillary/pendent jurisdiction applies. | Remand to circuit court for all claims; remand instructions consistent with opinion. |
Key Cases Cited
- Waggoner v. Williamson, 8 So.3d 147 (Miss. 2009) (standard for summary judgment is de novo)
- Moorhead Motor Co. v. H.D. Walker Auto Co., 97 So. 486 (Miss. 1923) (owner authorization and caveat empto principles in mechanic’s liens)
- Hall v. Corbin, 478 So.2d 253 (Miss. 1985) (ancillary/pendent jurisdiction and Rule 18 consolidation authority)
- Funchess v. Pennington, 39 So.2d 1 (Miss. 1949) (evidence sufficiency for reasonableness/necessity of repairs in lien context)