Southern Gen

Ins. Co. v. Auto Transformation, Inc., 206 Ga. App. 243, 424 S.E.2d 883, 1992 Ga. App. LEXIS 1593 (1992). Towing a vehicle and preparing an estimate of repair costs may not be considered work done or materials furnished in repairing or servicing a vehicle; the operator of a towing service was not entitled to a lien on a vehicle for towing and storage fees. Purser Truck Sales, Inc. v. Horton, 276 Ga. App. 17, 622 S.E.2d 405, 2005 Ga. App. LEXIS 1141 (2005). Granting vehicle’s possession to security interest holder without paying repairman. — When a repairman has a valid possessory lien for work done and materials furnished under Ga. L. 1975, p. 489, § 1 (see now O.C.G.A. § 40-3-54), it is illegal to grant possession of the vehicle to the security interest holder without payment of the amount due the repairman; but the repairman may lose priority if the repairman knew of the security interest at the time the materials were furnished. Atlanta Truck Serv., Inc. v. Associates Com. Corp., 146 Ga. App. 170, 246 S.E.2d 2, 1978 Ga. App. LEXIS 2200 (1978). Priority of security interest on certificate of title. — When a certificate of title provided constructive notice to future debtors that the motor vehicle was encumbered by a security interest in favor of plaintiff, plaintiff’s first security interest was superior to defendants’ later asserted mechanics’ lien. Hull v. Transport Acceptance Corp., 177 Ga. App. 875, 341 S.E.2d 330, 1986 Ga. App. LEXIS 1565 (1986); First Nat’l Bank v. Alvin Worley & Sons, 221 Ga. App. 820, 472 S.E.2d 568. Trial court erred by holding that defendant’s mechanic’s lien was superior to bank’s perfected security interest in motor home where the security interest was noted on the certificate of title, providing constructive notice to future creditors, and where it was undisputed that the repairs made by the defendant to the motor home were performed well after the certificate of title for the motor home was 444 40-3-54 CERTIFICATES OF TITLE, LIENS, ETC. issued. Washington State Employees Credit Union v. Robinson, 206 Ga. App. 782, 427 S.E.2d 15, 1992 Ga. App. LEXIS 1795 (1992), cert. denied, No. S93C0592, 1993 Ga. LEXIS 301 (Ga. Mar. 19, 1993). Notification of mechanic’s lien foreclosure. — Owner must be notified of institution of mechanic’s lien foreclosure proceedings involving the owner’s motor vehicle under paragraph (c)(2) of Ga. L. 1975, p. 489, § 1 (see now O.C.G.A. § 40-3-54). Imperial Body Works, Inc. v. Waters, 156 Ga. App. 887, 275 S.E.2d 822, 1981 Ga. App. LEXIS 1643 (1981). Forfeiture by lienholder. — Because the vehicle owner contested the validity of the amount claimed to be due and it is undisputed that the body shop failed to institute foreclosure proceedings within ten days, the body shop lien was forfeited. Haire v. Suburban Auto Body, Inc., 204 Ga. App. 16, 418 S.E.2d 163, 1992 Ga. App. LEXIS 655 (1992). Letters from the owner of motor vehicles and equipment to the lienholder contesting the validity of the debt and demanding return of the property constituted proper written demand and the lienholder forfeited the lien by the lienholder’s failure to timely institute foreclosure proceedings. Neal v. Natural Gas, 222 Ga. App. 774, 476 S.E.2d 73, 1996 Ga. App. LEXIS 1006 (1996). Burden of establishing proper service under O.C.G.A. § 40-3-54(c)(2) rests upon the mechanic lienholder who seeks to gain by the institution of foreclosure proceedings. Imperial Body Works, Inc. v. Waters, 156 Ga. App. 887, 275 S.E.2d 822, 1981 Ga. App. LEXIS 1643 (1981). Motor vehicle lien superior to general property lien. — Security interest on a vehicle which is perfected pursuant to Ga. L. 1969, p. 92, § 6 (see now O.C.G.A. § 40-3-54) is superior to a mechanic’s lien on a vehicle which is perfected under the provisions of former Code 1933, § 67-2003 (see now O.C.G.A. § 44-14-363). Gwinnett Sales & Serv. v. Trust Co., 130 Ga. App. 31, 202 S.E.2d 255, 1973 Ga. App. LEXIS 1211 (1973). Effect of mechanic’s conditional parting with vehicle. — Mechanic, who conditionally parted with possession of a vehicle for the purposes of providing for 40-3-54 the mechanic’s continued storage as property subject to a lien, neither lost nor waived its lien as it did not unconditionally part with possession or control of the lien property. First Nat’l Bank v. Strother Ford, Inc., 188 Ga. App. 749, 374 S.E.2d 203, 1988 Ga. App. LEXIS 1201 (1988). Requirement of continued retention of mechanic’s lien. — Lien asserted under the authority of O.C.G.A. § 40-3-54 is a statutory mechanic’s lien; however, when the lien is perfected by the mechanic’s retention of the vehicle, it becomes a statutory lien whose vitality is dependent on the continuation of that retention. First Nat’l Bank v. Strother Ford, Inc., 188 Ga. App. 749, 374 S.E.2d 203, 1988 Ga. App. LEXIS 1201 (1988). Counter affidavit not required. — Owner of property was not required to file a counter affidavit of the lienholder in order to preserve defenses to the affidavit of the lienholder. Neal v. Natural Gas, 222 Ga. App. 774, 476 S.E.2d 73, 1996 Ga. App. LEXIS 1006 (1996). Work must have been authorized by owner. — For a valid debt to exist on a motor vehicle the work must have been done or the supplies furnished by a contract with the owner or by the authority of the owner. P & B Corp. of Am., Ltd. v. One 1983 BMW, 175 Ga. App. 462, 333 S.E.2d 633, 1985 Ga. App. LEXIS 2121 (1985). When insurance adjuster authorized to contract for repairs. — Court was authorized to conclude from the evidence that the plaintiff’s repair charges were valid and that the plaintiff was consequently authorized to assert a lien against the vehicle even though it was apparent that the actual contract for the repairs was between the plaintiff and the insurance adjuster rather than the plaintiff and the defendant, there was evidence that the defendant expressly authorized the adjuster to enter into this contract and then knowingly surrendered possession of the vehicle to the plaintiff for the purpose of allowing the repairs to be made. Carpet Transp., Inc. v. Fisher, 166 Ga. App. 450, 304 S.E.2d 540, 1983 Ga. App. LEXIS 2207 (1983). Date from which to calculate amount owed to vehicle owner. — Date upon which body shop’s lien was 445 40-3-54 MOTOR VEHICLES & TRAFFIC forfeited is the proper date from which the jury must calculate the amount owed to the vehicle owner for reasonable hire. Haire v. Suburban Auto Body, Inc., 204 Ga. App. 16, 418 S.E.2d 163, 1992 Ga. App. LEXIS 655 (1992). Ordering recording of foreclosed mechanic’s lien. — Because paragraph (c)(5) of O.C.G.A. § 40-3-54 provides for immediate enforcement of the mechanic’s lien as part of the foreclosure proceedings, nothing is to be gained by ordering the Motor Vehicle Division to record the lien on the certificate of title. Carpet Transp., Inc. v. Fisher, 166 Ga. App. 450, 304 S.E.2d 540, 1983 Ga. App. LEXIS 2207 (1983). 40-3-55 Contract price paid in full. — No lien may be asserted when the contract price has been paid in full. Davis v. State, 167 Ga. App. 701, 307 S.E.2d 272, 1983 Ga. App. LEXIS 2582 (1983). No jury trial. — Paragraph (c)(5) of O.C.G.A. § 40-3-54 clearly contemplates that the determination of the validity of the debt will be made by the court, and no provision is made for the intervention of a jury, nor is a right to trial by jury in such proceedings mandated by the Georgia Constitution. Carpet Transp., Inc. v. Fisher, 166 Ga. App. 450, 304 S.E.2d 540, 1983 Ga. App. LEXIS 2207 (1983).