Ally Financial Inc. v. Pira
Ally Financial Inc. v. Pira
Opinion
¶ 1 Plaintiff, Ally Financial Inc., filed a complaint for replevin against defendant, Michael Pira, doing business as Michael's Ultimate Detailing & Design, Inc., seeking possession of a 2013 Chevrolet Silverado. Defendant asserted as an affirmative defense that he had a common-law possessory lien, not only for the cost of the work that had been performed on the vehicle, but also for the storage fees that had accrued after the work was completed. The parties filed cross-motions for summary judgment on the sole issue of whether defendant's lien included the storage fees. The trial court found that defendant's lien covered only the charges relating to the work that had been performed on the vehicle, and accordingly it ruled in favor of plaintiff. Defendant now appeals. We affirm.
¶ 2 I. BACKGROUND
¶ 3 We begin by noting that the appellate record contains no reports of proceedings or bystander's reports. The following facts are therefore derived from the pleadings. Much of our factual recitation is relevant only for jurisdictional purposes.
¶ 4 Plaintiff's verified complaint for replevin was filed on June 11, 2015. Plaintiff alleged that Robert Siudak had purchased a 2013 Chevrolet Silverado in March 2013. After Siudak executed an installment contract with the dealer, the dealer assigned its interest in the installment contract to plaintiff, and plaintiff perfected its security interest in the vehicle. Plaintiff alleged that Siudak brought the vehicle to defendant's shop shortly before Siudak filed for bankruptcy, in September 2014. Due to Siudak's nonpayment, and pursuant to the terms of the installment contract, plaintiff asserted its right to possession of the vehicle. However, defendant refused to relinquish possession, demanding full payment of all storage fees in addition to the cost of the work that had been performed on the vehicle.
¶ 5 Plaintiff asserted that it was not obligated to pay the storage fees and that it had a superior right to possession of the vehicle, which had a fair market value of $33,475. Accordingly, plaintiff requested that the trial court enter a judgment granting plaintiff possession of the vehicle, or, in the alternative, an award against defendant in the amount of $33,475. Plaintiff *64 also requested an award for "[r]easonable attorney's fees, court costs, and for whatever other relief this court deems appropriate."
¶ 6 Defendant's answer was accompanied by an affirmative defense. Defendant asserted that he had a common law-possessory lien, for the cost of the work and the storage fees, that took priority over plaintiff's security interest. In an affidavit, defendant attested that Siudak dropped off the vehicle for detailing and minor repairs on June 9, 2014. The work was completed the next day. The charges for the detailing and the repairs amounted to $658. Defendant called Siudak numerous times and left several voice messages. However, Siudak never returned any of the calls, nor did he ever return to pick up the vehicle. Defendant asserted that, as of October 30, 2015, the storage fees amounted to $27,780, accumulating at a reduced rate of $60 per day (the normal rate was $75 per day).
¶ 7 The parties filed cross-motions for summary judgment. Plaintiff acknowledged that defendant was entitled to the cost of the detailing and the repairs, and it averred that it had offered to make such payment. Plaintiff maintained, however, that defendant's common-law possessory lien did not extend to the storage fees, as the storage did not impart any added value to the vehicle. Defendant, on the other hand, argued that his lien arose by virtue of his contract with Siudak and that he was therefore entitled to the same rights as a common carrier.
¶ 8 On February 4, 2016, the trial court ruled on the cross-motions for summary judgment, entering an order that granted plaintiff's motion and denied defendant's motion. The order included a ruling that, "as a matter of law in this case, [defendant's] common law possessory lien covers repair charges, but not storage charges." The order also stated that the matter was "continued for further status" to March 3, 2016.
¶ 9 Also on February 4, 2016, the trial court issued an order of replevin directing the Lake County sheriff to take possession of the vehicle and deliver it to plaintiff. However, a handwritten notation stated that execution of the order was stayed through March 3, 2016. Another handwritten notation stated that the order would be executed "upon payment of defendant's common law possessory lien for repair charges."
¶ 10 The record reflects that the next four court dates took place on March 3, April 14, May 5, and June 2, 2016. Defendant did not appear in court on any of these dates. On each occasion, the trial court entered an order of replevin. None of these orders contained any handwritten notations or conditions of enforcement.
¶ 11 On June 14, 2016, defendant filed a motion for a finding of "friendly contempt." He stated that he desired to "test the validity" of the underlying order of replevin, and he asserted that there was "no direct precedent" on the issue of whether his common-law possessory lien covered the storage fees. Accordingly, defendant requested that the trial court impose a minimal fine for the purpose of facilitating an interlocutory appeal pursuant to Illinois Supreme Court Rule 304(b)(5) (eff. Mar. 8, 2016).
¶ 12 Plaintiff filed a memorandum in opposition to defendant's friendly-contempt motion, asserting that defendant needed to post a bond if he wanted to retain possession of the vehicle while the replevin action "proceed[ed] to final judgment and during any subsequent appeal." According to plaintiff, defendant's friendly-contempt motion was nothing more than a procedural ploy aimed at retaining possession *65 of the vehicle without having to post a bond.
¶ 13 On October 6, 2016, the trial court entered an order denying defendant's friendly contempt motion. The order noted that defendant's counsel had failed to appear at the hearing that day, as well as the previous hearing, and that the matter was again "continued for status" to November 3, 2016.
¶ 14 The record reflects that plaintiff obtained possession of the vehicle after the denial of defendant's friendly-contempt motion. (In its appellate brief, plaintiff states that it "recovered the Vehicle on or about October 21, 2016, through its own recovery company and paid Defendant the total cost of repairs in the amount of $681.00.")
¶ 15 On November 3, 2016, the trial court entered an order prepared by plaintiff's counsel that stated: "This matter is hereby dismissed, without prejudice and with leave to reinstate, and without costs to either party."
¶ 16 On December 13, 2016, defendant filed a "motion for the entry of a final and appealable order." Defendant acknowledged that he had relinquished possession of the vehicle to plaintiff following the denial of his friendly-contempt motion. He argued, however, that the order dismissing the case on November 3, 2016, was not final and appealable, because it stated that the case was dismissed "without prejudice and with leave to reinstate." Defendant therefore requested that the trial court enter an order "dismissing this case with prejudice." Plaintiff filed a response in opposition, arguing that the trial court lost jurisdiction to alter the order dismissing the case after the passage of 30 days.
¶ 17 On February 23, 2017, the trial court granted defendant's motion for the entry of a final and appealable order. It entered an order stating in pertinent part: "This matter is dismissed with prejudice nunc pro tunc to November 3, 2016; this court finding that, due to a scrivener's error, the Nov. 3, 2016, dismissal was entered without prejudice instead of with prejudice."
¶ 18 Defendant filed a notice of appeal on March 16, 2017. He stated that he was appealing from the order dated February 23, 2017, dismissing plaintiff's complaint with prejudice, as well as from the order dated February 4, 2016, in favor of plaintiff on the parties' cross-motions for summary judgment.
¶ 19 II. ANALYSIS
¶ 20 The only issue disputed on appeal is whether Illinois law supports defendant's claim of a common-law possessory lien for the storage fees. However, before we address that issue, we have an independent duty to consider our jurisdiction.
Stoneridge Development Co. v. Essex Insurance Co.
,
¶ 21 A. Jurisdiction
¶ 22 The Illinois Constitution confers on the appellate court jurisdiction to hear appeals from all "final judgments" entered by the circuit court. Ill. Const. 1970, art. VI, § 6. A "final judgment" is a " 'determination by the court on the issues presented by the pleadings which ascertains and fixes absolutely and finally the rights of the parties in the lawsuit.' " (Emphasis omitted.)
Hernandez v. Pritikin
,
*66
People v. Shinaul
,
¶ 23 This case involves an appeal from a ruling on cross-motions for summary judgment. "When the lower court grants one party's summary judgment motion as to
all issues
and denies the other party's summary judgment motion as to the same issues, the resulting order is final and appealable because it entirely disposes of the litigation." (Emphasis added.)
Arangold Corp. v. Zehnder
,
¶ 24 Here, the only issue raised in the cross-motions for summary judgment was whether defendant had a common-law possessory lien for the storage charges. On February 4, 2016, the trial court entered an order that granted plaintiff's motion and denied defendant's motion, including a ruling that, "as a matter of law in this case, [defendant's] common law possessory lien covers repair charges, but not storage charges." The trial court continued the matter "for further status" to March 3, 2016, presumably in hopes that defendant would transfer possession of the vehicle to plaintiff without involving the sheriff. That explains why the accompanying replevin order was stayed to March 3, 2016. But this had no bearing on the finality of the underlying judgment, as the trial court was vested with the inherent power to enforce the replevin order. See
Smithberg v. Illinois Municipal Retirement Fund
,
¶ 25 However, given the nature of replevin proceedings, plaintiff might have been entitled to additional relief. "Replevin is strictly a statutory proceeding."
Gunn v. Sobucki
,
¶ 26 In its complaint, plaintiff made a request for "[r]easonable attorney's fees, court costs, and for whatever other relief this court deems appropriate." We note that nothing in the statutes on replevin expressly authorizes attorney fees for the successful plaintiff in a replevin action. Therefore, plaintiff's request for attorney fees would not have been viable. See
Housing Authority of Champaign County v. Lyles
,
¶ 27 Moving forward, as explained above, the case remained pending in the trial court for nine months following the ruling on the cross-motions for summary judgment. The trial court issued orders of replevin in March, April, May, and June. Defendant did not appear for any of these court dates, nor did he return the vehicle to plaintiff. Rather, he filed a motion for a finding of friendly contempt on June 14, 2016. He then failed to appear in court when his motion was denied on October 6, 2016.
¶ 28 A confusing chain of events was set into motion when defendant finally appeared in court on November 3, 2016, having recently relinquished possession of the vehicle. The parties apparently sought to have the case "dismissed" for purposes of entering a final and appealable order. The trial court entered an order that stated: "This matter is hereby dismissed, without prejudice and with leave to reinstate, and without costs to either party." However, an order stating that a dismissal is "without prejudice" is not final and appealable.
D'Attomo v. Baumbeck
,
¶ 29 We first note that the final judgment in this case was issued when the trial court "dismissed" the matter with prejudice on February 23, 2017. See
Dubina v. Mesirow Realty Development, Inc.
,
¶ 30 Regarding the
nunc pro tunc
language in the final judgment, we note that such an amendment "must be based on some note, memorandum, or other memorial in the court record."
Harreld v. Butler
,
¶ 31 Aside from our jurisdiction, there is another aspect of these orders that warrants discussion. Because of the manner in which the parties went about seeking the entry of a final and appealable order, we are presented with a peculiar procedural posture: defendant is taking this appeal after successfully obtaining a "dismissal" of plaintiff's complaint with prejudice. This issue has not been addressed in the briefs on appeal, and there is no indication that it was addressed in the trial court.
¶ 32 Ordinarily, when a defendant obtains a dismissal of a plaintiff's complaint with prejudice, we are precluded from considering an appeal by the defendant.
Argonaut-Midwest Insurance Co. v. E.W. Corrigan Construction Co.
,
¶ 33 However, the record here indicates that the parties and the trial court intended not to enter a final judgment in defendant's favor, but rather to enter a final judgment in plaintiff's favor, which defendant could then appeal. This is evidenced not only by defendant's written arguments in the trial court, but also by plaintiff's memorandum in opposition to defendant's motion for a friendly-contempt finding. In its memorandum, plaintiff argued that defendant was attempting to avoid posting a bond and to retain possession of the vehicle while the replevin action "proceed[ed] to final judgment and during any subsequent appeal."
¶ 34 Thus, although the order dated February 23, 2017, formally declared a dismissal of plaintiff's complaint, it was substantively an order declaring that all matters had been finally adjudicated. We will treat it accordingly. See
Kiefer v. Rust-Oleum Corp.
,
¶ 35 Before addressing the merits of this appeal, we comment that this case had clearly come to a close when the parties appeared on November 3, 2016. The trial court had denied defendant's motion for a friendly-contempt finding, plaintiff had recovered the vehicle, and there was no award of costs or damages related to the recovery. Under these circumstances, all that was needed for purposes of finality was an order indicating that the trial court had finally disposed of all issues as to the parties. See
Brentine v. DaimlerChrysler Corp.
,
¶ 36 B. Common-Law Possessory Lien
¶ 37 Defendant contends that the trial court erred in ruling on the parties' cross-motions for summary judgment, maintaining *69 that his common-law possessory lien applied not only to the charges for the work that had been performed on the vehicle, but also to the storage fees that accrued thereafter. For the following reasons, we disagree.
¶ 38 Summary judgment is proper only where the pleadings, depositions, admissions, and affidavits on file show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law. 735 ILCS 5/2-1005(c) (West 2014). When the parties file cross-motions for summary judgment, they agree that there is no issue as to any material fact and that only questions of law are presented.
City of Oakbrook Terrace v. Suburban Bank & Trust Co.
,
¶ 39 Our supreme court has observed that Illinois recognizes the validity of the common-law possessory lien, known in certain instances as the "artisan's possessory lien."
National Bank of Joliet v. Bergeron Cadillac, Inc.
,
"When a person in the ordinary course of his business furnishes services or materials with respect to goods subject to a security interest, a lien upon goods in the possession of such person given by statute or rule of law for such materials or services takes priority over a perfected security interest unless the lien is statutory and the statute expressly provides otherwise." Ill. Rev. Stat. 1973, ch. 26, ¶ 9-310.
¶ 40 Section 9-310 has since been supplanted and codified as section 9-333 of the Uniform Commercial Code. It provides as follows:
"(a) 'possessory lien.' In this Section, 'possessory lien' means an interest, other than a security interest or an agricultural lien:
(1) which secures payment or performance of an obligation for services or materials furnished with respect to goods by a person in the ordinary course of the person's business;
(2) which is created by statute or rule of law in favor of the person; and
(3) whose effectiveness depends on the person's possession of the goods.
(b) Priority of possessory lien. A possessory lien on goods has priority over a security interest in the goods unless the lien is created by a statute that expressly provides otherwise." 810 ILCS 5/9-333 (West 2016).
¶ 41 Here, there is no dispute as to whether defendant's common-law possessory lien takes priority over plaintiff's secured interest in the vehicle. As the pertinent language of section 9-333 tracks that of its predecessor, our supreme court's holding in Bergeron Cadillac remains applicable.
*70
However, there is scarce Illinois case law discussing the
extent
of a common-law possessory lien. As a result, the parties have focused their arguments primarily on two cases:
Navistar Financial Corp. v. Allen's Corner Garage & Towing Service, Inc.
,
¶ 42 In
Navistar
, this court observed that common-law possessory liens are "fundamentally consensual in nature and can be created only by agreement, by some fixed rule of law, or by usage of trade or commerce."
Navistar
,
¶ 43 The defendant in
Navistar
towed a truck-trailer unit to its garage after removing it from a ditch on the side of a highway. Shortly thereafter, the plaintiff, a secured creditor, contacted the defendant and claimed the right to possession of the truck, due to the owner's default on his purchase loan agreement. However, the defendant refused to release the truck until all towing and storage charges were paid for the entire truck-trailer unit. This led the plaintiff to file a complaint for replevin seeking possession of the truck. The trial court found that the defendant had established a common-law possessory lien for the towing charges related to the truck, but not for the storage fees.
¶ 44 On appeal, this court affirmed the trial court's ruling. We first held that, although the defendant qualified as a common carrier, it did not qualify as an artisan, as the "mere towing of a vehicle from one place to another does not add anything to the 'intrinsic value' of the vehicle towed."
Id.
at 577,
¶ 45 Here, defendant relies on
Navistar
for the proposition that his common-law possessory lien covered the storage fees because he sustained an "inconvenience and expense" by storing the vehicle in conjunction with his services that imparted added value to the vehicle. We disagree. We said nothing in
Navistar
to indicate that artisans-or those who impart added value to the property-are entitled to a common-law possessory lien for storage fees. Rather, we concluded that
common carriers
might be
*71
entitled to a common-law possessory lien for storage fees unless they retain the goods in question solely for the purpose of preserving lien rights.
Id.
at 578,
¶ 46 Defendant recognizes our distinction in
Navistar
between artisans and common carriers, but he asserts that he took on the role of a common carrier after Siudak abandoned the vehicle at his shop. Again, we disagree. In Illinois, a common carrier is " 'one who undertakes for the public to transport from place to place such persons or the goods of such persons as choose to employ him for hire.' "
Browne v. SCR Medical Transportation Services, Inc.
,
¶ 47 Here, there is no evidence that defendant held himself out as one who undertook to transport persons or goods. Therefore, pursuant to
Navistar
, defendant is entitled only to the common-law lien rights of an artisan. The weight of authority from other jurisdictions makes it clear that an artisan's common-law possessory lien
does not
extend to storage fees, but rather applies only to "reasonable charges" for the work that imparted the added value. See,
e.g.
,
Mack Motor Truck Corp. v. Wolfe
,
*72
Robinson Brothers Motor Co. v. Knight
,
¶ 48 We are likewise not persuaded by defendant's reliance on
Styck's Body Shop
. The plaintiff in that case, an insurance company, had an ongoing agreement with the defendant, a body shop, for the towing and storage of damaged vehicles that were insured by the plaintiff.
Styck's Body Shop
,
¶ 49 Here, defendant argues that
Styck's Body Shop
"expressly recognizes a common law possessory lien for storage charges." This argument is misguided. To begin, the basis for the award of storage fees in
Styck's Body Shop
is unclear. As noted, in addition to asserting a common-law lien, the defendant in that case also raised affirmative defenses based on certain statutory liens.
¶ 50 However, even if the storage fees in
Styck's Body Shop
were awarded as part of a common-law possessory lien, we see no conflict with our holding in
Navistar
. Although
Styck's Body Shop
made no mention of the distinction between artisans and common carriers, it is clear that the defendant in that case was appropriately classified as a common carrier. The defendant was "engaged in the business of vehicle collision repair and towing," but the parties had a continuing agreement only for the hookup, removal, towing, and storage of damaged vehicles.
Id.
at 243,
¶ 51 For all of these reasons, we reject defendant's argument that he is entitled to a common-law possessory lien for the storage fees pursuant to the holding in Styck's Body Shop . That brings us to defendant's final argument, which is based on his agreement with Siudak.
¶ 52 Defendant points to a copy of a document in the record, purportedly signed by Siudak, that appears to be an estimate for the cost of detailing and repairs. A statement in small print at the bottom of the document reads as follows:
"Daily storage fee after repair work has been completed and customer has been notified. No charges shall accrue or be due and payable for a period of 3 working days from date of notification."
Defendant also directs us to a picture of a sign on its premises that reads:
"Any Vehicle, Water Craft or Trailer NOT PICKED UP WITHIN Ten (10) days of Completion of Service will be charged a Storage Fee of $75 per day Applied to Original Work Order and Unit will NOT be Released until BALANCE IS PAID IN FULL"
Defendant argues that, based on this evidence, his common-law possessory lien for the storage fees arises out of the "contract" that he formed with Siudak. Although plaintiff has not addressed this argument, we nonetheless find that it has no merit.
¶ 53 Defendant's argument is premised on our observation in
Navistar
that common-law possessory liens "are fundamentally consensual in nature and can be created only by agreement, by some fixed rule of law, or by usage of trade or commerce."
Id.
at 576,
¶ 54 III. CONCLUSION
¶ 55 For the reasons stated, we affirm the Lake County circuit court's rulings on the parties' cross-motions for summary judgment.
¶ 56 Affirmed.
Presiding Justice Hudson and Justice Spence concurred in the judgment.
Suggestions to the contrary should be viewed with caution. See,
e.g.
,
Director of Insurance v. A & A Midwest Rebuilders, Inc.
,
Reference
- Full Case Name
- ALLY FINANCIAL INC., Plaintiff-Appellee, v. Michael PIRA, D/B/A/ Michael's Ultimate Detailing & Design, Inc., Defendant-Appellant.
- Cited By
- 3 cases
- Status
- Unpublished