Leesburg Fed. Sav. Bank v. McMurray
2012 Ohio 5435
Ohio Ct. App.2012Background
- Parrish stored McMurray's Stingray in Parrish's indoor heated facility beginning December 2002, for a monthly fee.
- Leesburg issued a note to McMurray in May 2007 and secured it with a security interest in the Stingray, with a title notation.
- Parrish repaired the Stingray in 2010 and 2011 but McMurray failed to pay storage and repair charges.
- Leesburg filed suit in 2010 seeking payment or possession; Parrish claimed it had a common-law artisan's lien and priority.
- Trial court held Leesburg had the only lien and awarded Parrish repairs costs on quantum meruit; Parrish appealed.
- Appellate court held Parrish did not obtain an artisan's lien by storage, and quantum meruit recovery was not warranted; judgment affirmed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Did Parrish obtain an artisan's lien prior to Leesburg? | Parrish asserts warehousing created the lien with priority. | Leesburg's security interest should govern; artisan's lien priority is subordinate. | Parrish did not obtain a valid artisan's lien by storage. |
| If no artisan's lien, is Parrish entitled to quantum meruit for storage or repairs? | Parrish seeks storage/repair fees under quantum meruit. | Leesburg was unaware of storage; no benefit to Leesburg is proven. | Parrish not entitled to quantum meruit recovery. |
Key Cases Cited
- Dudley v. Dudley, 196 Ohio App.3d 671 (12th Dist. 2011) (de novo review of questions of law; lien priority considerations)
- Berry v. Commonwealth, 2 Ohio St.2d 169 (1965) (security interest priority governs over artisan's lien for motor vehicles)
- Metropolitan Securities Co. v. Orlow, 107 Ohio St. 583 (1923) (common-law artisan's lien concept and attachments)
- Candler v. Ash, 53 Ohio App.2d 134 (6th Dist. 1976) (labor/value confers artisan's lien; engine removal example in Shearer lineage)
- Shearer v. Bill Garlic Motors Inc., 59 Ohio App.2d 320 (6th Dist. 1977) (labor/conferred value; mechanic's lien when engine removed/inspected)
- Alcorn v. Moreland, 12th Dist. No. CA87-11-092, 1989 WL 6166 (1989) (storage alone does not establish artisan's lien; distinguishes from labor)
- Pawloski, 188 Ohio App.3d 267 (8th Dist. 2010) (garage owner lien considerations; relevance to artisan's lien doctrine)