Lien of mechanic for repair (personal property)

Question 1

Scope of repairer’s lien

Answer 1

“BY STATUTE, a mechanic obtains a possessory lien when she is not paid for making requested repairs to personal property.”

(1) a lien for “just and reasonable compensation” charges for alterations or repairs to a piece of personal property”

(2) must be for repairs requested by the owner or by a person in rightful possession

(3) no recording requirement - possession is a public act and mechanic must be in possession of property

(4) may be asserted up to $1000 against the lawful possessor (includes owner and holder of security interest)

Question 2

priority of repairer’s lien over competing security interests

Answer 2

Repairer’s lien has priority over competing security interests, if the repair was made int he ordinary course of business and the property remains in their possession

CAR REPAIRS
repairer’s lien on cars will prevail over competing sec interest if repairer provides an itemized sworn statement of the work done and materials supplied

Question 3

priority of repairer’s lien over other liens

Answer 3

first in time first in right

priority date for “first in time” = date the work was performed

EXCEPTION
- When mechanic was hired for construction of a new building, the mechanic’s lien will take priority over a lien recorded prior to commencement of the work to the extent of the building’s value, but an earlier recorded lein will have priority for value of the land

Question 4

enforce material men’s lien

Answer 4

(1) self-help sale
– $ due is > 10 days late
– $ due is < $5,000

(2) sheriff’s sale
– GDC for greater than $5k but less than $15k
– Circuit for greater than $15k
– in any case, must give notice to the debtor and all interest holders must be joined as defendants
– mechanic must return property to owner if owner sues to recover it and posts bond in amount of the claim + court costs

Question 5

priority of mechanic’s lien vs. other mechanic’s lien

Answer 5

equal priority!

BUT

labor > materials

subcontractors > general contractors

sub-sub contractor > sub contractor

for personal property – priority over competing sec. interests is provided for repairs done in ordinary course of business