2020 Georgia Code
Title 44 - Property
Chapter 14 - Mortgages, Conveyances to Secure Debt, and Liens
Article 8 - Liens
Part 3 - Mechanics and Materialmen
§ 44-14-363. Special Liens on Personalty; Notice; Enforcement; Priorities; Maximum Claims for Storage; Recordation

1. All mechanics of every sort shall have a special lien on personal property for work done and material furnished in manufacturing or repairing the personal property and for storage of the personal property after its manufacture or repair, which storage begins accruing after 30 days' written notice to the owner of the fact that storage is accruing and of the daily dollar amount thereof; and said notice shall be mailed to the owner by certified mail or statutory overnight delivery addressed to the owner at his last known address. Such special liens may be asserted by the retention of the personal property or the mechanic may surrender the personal property and give credit when the lien is enforced in accordance with Code Section 44-14-550; and if such special liens are asserted by retention of the personal property, the mechanic shall not be required to surrender the property to the holder of a subordinate security interest or lien. Such liens shall be superior to all liens except liens for taxes and, except as provided in subsection (2) of Code Section 11-9-310, such other liens as the mechanic may have had actual notice of before the work was done or material furnished.
2. The maximum amount of storage that may be charged shall be $1.00 per day. Nothing contained in this Code section shall allow a fee for storage to be charged on any item with a fair market value in excess of $200.00. Storage charges pursuant to this Code section shall not apply to motor vehicles now or hereafter covered by Chapter 3 of Title 40 nor shall the storage fee be charged if there is a bona fide dispute between the customer and the mechanic as to the manner of repair or the charges for repair.
3. 1. When possession of the property is surrendered to the debtor, the mechanic shall record his or her claim of lien within 90 days after the work is done and the material is furnished or, in the case of repairs made on or to farm machinery, within 180 days after the work is done and the material is furnished. The claim of lien shall be recorded in the office of the clerk of the superior court of the county where the owner of the property resides. The claim shall be in substance as follows:

      "A.B., mechanic, claims a lien on ________ (here describe the property) of C.B., for work done, material furnished, and storage accruing (as the case may be) in manufacturing, repairing, and storing (as the case may be) the same."

   2. If possession of the personal property subject to a special lien as provided in this Code section is surrendered to the debtor and if such special lien is not preserved by recording the claim of lien as provided in paragraph (1) of this subsection, the mechanic acquires a special lien on other personal property belonging to the debtor which comes into the possession of the mechanic, except that this sentence shall not apply to consumer goods which are being used by a consumer for personal, family, or household purposes or which have been bought by a consumer for use for personal, family, or household purposes. The special lien created by this paragraph shall be subject to the provisions of this Code section as to foreclosure and recording.

(Ga. L. 1873, p. 42, § 8; Code 1873, § 1981; Code 1882, § 1981; Ga. L. 1884-85, p. 43, § 1; Civil Code 1895, § 2805; Civil Code 1910, § 3354; Code 1933, § 67-2003; Ga. L. 1953, Nov.-Dec. Sess., p. 275, § 1; Ga. L. 1960, p. 912, § 1; Ga. L. 1972, p. 415, § 1; Ga. L. 1979, p. 902, § 1; Ga. L. 1980, p. 831, § 2; Ga. L. 1984, p. 561, § 1; Ga. L. 1985, p. 1107, § 2; Ga. L. 2000, p. 1589, § 3; Ga. L. 2010, p. 776, § 1/HB 1147.)

The 2000 amendment, effective July 1, 2000, substituted "certified mail or statutory overnight delivery" for "certified mail" in the first sentence of subsection (a).

The 2010 amendment, effective July 1, 2010, in the first sentence of paragraph (c)(1), inserted "or her" near the beginning, and deleted "aircraft or" preceding "farm machinery" near the end. See Editor's notes for applicability.

- Liens for work done or materials furnished with regard to motor vehicles, § 40-3-54.

- For note discussing the Motor Vehicle Certificate of Title Act (Ch. 3, T. 40) and its impact, see 13 Mercer L. Rev. 258 (1961). For comment on United States v. Crittenden, 563 F.2d 678 (5th Cir. 1977), see 12 Ga. L. Rev. 692 (1977). For comment on United States v. Crittenden, 600 F.2d 478 (5th Cir. 1979), discussing the priority of a mechanic's lien in Georgia, see 14 Ga. L. Rev. 628 (1980).

O.C.G.A. § 44-14-363 applies to perfection of mechanic's liens against personal property in general. Gwinnett Sales & Serv. v. Trust Co., 130 Ga. App. 31, 202 S.E.2d 255 (1973).

- The affidavit for the foreclosure of a mechanic's lien under O.C.G.A. § 44-14-363 must allege facts sufficient to show that the work was done in the manufacture or repair of personal property. Cook v. Bowden, 32 Ga. App. 498, 124 S.E. 60 (1924).

- A mechanic who performs labor is not limited to a remedy under O.C.G.A. § 44-14-363 but may assert a general laborer's lien under O.C.G.A. § 44-14-380. Hilley v. Lunsford, 29 Ga. App. 398, 115 S.E. 667 (1923).

- Whether the mechanic asserts a lien by retention of the property or by surrendering possession and recording the lien, the mechanic may enforce payment by foreclosure proceedings according to the provisions of O.C.G.A. § 44-14-550. Fitzgerald Trust Co. v. Burkhart, 12 Ga. App. 222, 77 S.E. 7 (1913).

- While a foreclosure of a lien is necessary before sale under it, yet where another levies on the property, it is proper for the mechanic to arrest the proceeding by claim. Hurley & Smith v. Epps, 69 Ga. 611 (1882).

- Where a mechanic has asserted a lien on personal property for repairs thereon and has enforced payment thereof by foreclosure proceedings, the owner cannot bring trover against the mechanic. Fitzgerald Trust Co. v. Burkhart, 12 Ga. App. 222, 77 S.E. 7 (1913).

- Where defendant mechanic holds plaintiff's automobile in assertion of a special lien for repairs, the mechanic's refusal to redeliver the automobile to the plaintiff in trover upon demand, without payment of the repair bill, constitutes no conversion of the property, and plaintiff cannot maintain action in trover for its recovery. Truscott v. Garner, 92 Ga. App. 95, 88 S.E.2d 197 (1955).

- Where one receives possession of an automobile for the purpose of making repairs and holds the vehicle in assertion of a special lien for making such repairs, the holder's refusal to deliver the automobile upon demand does not constitute a conversion. Boatright v. Padgett Motor Sales, Inc., 117 Ga. App. 578, 161 S.E.2d 402 (1968).

Where there is agreement to balance accounts from time to time, the right to hold the property is waived and the lien is lost unless a claim of lien is filed. Gearreld v. Woodruff, 13 Ga. App. 450, 79 S.E. 355 (1913).

Where a mechanic does work on open account repairing several articles the mechanic cannot at the end of a year of such transactions record a claim of lien for all of them. Palin v. Cooke, 125 Ga. 442, 54 S.E. 90 (1906).

- Although the retention of the automobile is the proper method of asserting the mechanic's lien under O.C.G.A. § 44-14-363, the allegation of possession is irrelevant where a mechanic's lien for repair work and material of the credit of a vendee is inferior to the vendor's contract retaining the title, regardless of who has possession of the automobile at the time of the levy. Dixon v. GMAC, 105 Ga. App. 413, 124 S.E.2d 660 (1962).

- There is nothing contained or implied in O.C.G.A. § 44-14-363 or the decisions thereunder that would indicate that a mechanic's lien, any more than any other lien, was intended to operate, or by any possible construction could be made to operate, in such a manner as to exert priority over an outstanding and valid legal title. Manchester Motors, Inc. v. F & M Bank, 91 Ga. App. 811, 87 S.E.2d 342 (1955).

O.C.G.A. § 44-14-363 has never at any time been construed to extend beyond mere liens, as such, and to effect a priority over a legal title in another. There is a clear distinction between a lien and a legal title. Manchester Motors, Inc. v. F & M Bank, 91 Ga. App. 811, 87 S.E.2d 342 (1955).

Unrecorded bill of sale to secure debt uniformly superior to any lien arising by operation of law, as is the case with any mechanic's lien. Manchester Motors, Inc. v. F & M Bank, 91 Ga. App. 811, 87 S.E.2d 342 (1955).

- The mechanic's lien of an aircraft repair company which was not recorded with the Federal Aviation Administration (FAA) was not valid, thus the security interest of a bank which was recorded with the FAA after the mechanic initiated lien foreclosure proceedings was superior. Southern Horizons Aviation v. F & M Bank, 231 Ga. App. 55, 497 S.E.2d 637 (1998).

§ 11-9-310 superior to mechanic's lien. - Under former O.C.G.A. § 11-9-310 (see now O.C.G.A. § 11-9-333), a perfected security interest takes priority over all liens described in O.C.G.A. § 44-14-320, including mechanic's lien as provided for in O.C.G.A. § 44-14-363. Newton Ford Tractor Co. v. JI Case Credit Corp., 163 Ga. App. 497, 294 S.E.2d 723 (1982).

A bank's security interest in the inventory of a carpet manufacturer took priority over a mechanic's lien. Nationsbank v. Hardwick Carpets Int'l, Inc., 233 Ga. App. 894, 506 S.E.2d 174 (1998).

§ 40-3-54 superior to mechanic's lien. - A security interest on a vehicle which is perfected pursuant to O.C.G.A. § 40-3-54 is superior to a mechanic's lien on a vehicle which is perfected under the provisions of O.C.G.A. § 44-14-363. Gwinnett Sales & Serv. v. Trust Co., 130 Ga. App. 31, 202 S.E.2d 255 (1973).

- A bill of sale properly recorded is a superior lien to a mechanic's lien subsequently duly recorded and foreclosed. Norman v. Farmers State Bank, 90 Ga. App. 763, 84 S.E.2d 207 (1954).

Effect of a failure to record a mortgage or bill of sale to secure debt shall be the same as is the effect of failure to record a deed of bargain and sale. This changes the prior law with reference to those securities so as to render such instruments, even though unrecorded, superior in rank to subsequent liens created by law. Manchester Motors, Inc. v. F & M Bank, 91 Ga. App. 811, 87 S.E.2d 342 (1955).

- Where a vendor retains title to personal property the vendor's claim is superior to the lien of a mechanic who has done work at the instance of the vendee. The vendee cannot force a liability on the vendor. Baughman Auto. Co. v. Emanuel, 137 Ga. 354, 73 S.E. 511, 38 L.R.A. (n.s.) 97 (1912).

- A bill of sale to secure debt conveys an outright legal title, as distinguished from a mortgage lien, under law, so as to place such legal title beyond the reach of any lien, statutory or otherwise, in the absence of a recording act treating such as an equitable mortgage. Manchester Motors, Inc. v. F & M Bank, 91 Ga. App. 811, 87 S.E.2d 342 (1955).

- Where O.C.G.A. § 40-6-206 permits police officers to remove illegally parked automobiles to a garage or other place of safety, but it does not specify whether a public or private garage, nor does it state that the owner shall be liable for the costs of such removal and storage, and no specific authority is given the officers to impound the vehicle and the law is blank as to its ultimate disposition, the law does not create an agency relation between the police officers and the owner so as to create a contract for storage or towing charges, since the owner does not assent to this disposition of property, and no person authorized by law to act for the owner assents to it. Under these circumstances, no lien arises, and detention of the property by the garage against the demands of the owner amounts to a conversion. Wilkinson v. Townsend, 96 Ga. App. 179, 99 S.E.2d 539 (1957).

- A lien does not arise under O.C.G.A. § 44-14-363 when the facts show that the claimants are not mechanics, but proprietors of a sawmill. Evans v. Beddingfield, 106 Ga. 755, 32 S.E. 664 (1899).

- The lien given by O.C.G.A. § 44-14-363 does not attach in favor of a workman who is hired by another to do the work. In such a case, the possession of the lien is in the master or contractor. Quillian v. Central R.R. & Banking Co., 52 Ga. 374 (1874).

A firm engaged in operating a repair shop where others are employed to do expert mechanical work, and where material is furnished for the repair of carriages and automobiles, is entitled to a lien on the property manufactured or improved. Fox v. Smith, 143 Ga. 547, 85 S.E. 856 (1915).

- The lien provided for in O.C.G.A. § 44-14-363 is afforded to mechanics, notwithstanding the work employed in manufacturing or repairing the property may have been performed entirely by an employee of the mechanic. Fox v. Smith, 143 Ga. 547, 85 S.E. 856 (1915).

- It was the intent, and it is the plain meaning of O.C.G.A. § 44-14-363 to give the lien to the manufacturer or repairer, the individual who controls the work, has the shop, and not to the workmen. Gibbs v. Griffin, 123 Ga. App. 385, 181 S.E.2d 285 (1971).

For example of enforcement of lien, see Young v. Alford, 36 Ga. App. 708, 137 S.E. 914 (1927).

Cited in Mulkey v. Thompson, 3 Ga. App. 522, 60 S.E. 223 (1908); Richardson v. Mallory, 13 Ga. App. 496, 79 S.E. 362 (1913); Frost Motor Co. v. Pierce, 72 Ga. App. 447, 33 S.E.2d 910 (1945); United States v. Ridley, 120 F. Supp. 530 (N.D. Ga. 1954); Carrollton Prod. Credit Ass'n v. Allen, 93 Ga. App. 150, 91 S.E.2d 93 (1955); Brewer v. Chapman, 94 Ga. App. 92, 93 S.E.2d 814 (1956); Buice v. Campbell, 99 Ga. App. 334, 108 S.E.2d 339 (1959); Tow v. Forrester, 122 Ga. App. 718, 178 S.E.2d 692 (1970); Southwire Co. v. Metal Equip. Co., 139 Ga. App. 49, 198 S.E.2d 687 (1973); Collins v. Booker, 129 Ga. App. 824, 201 S.E.2d 676 (1973); Reinertsen v. Porter, 242 Ga. 624, 250 S.E.2d 475 (1978); WWG Indus., Inc. v. United Textiles, Inc., 772 F.2d 810 (11th Cir. 1985); Demido v. Wilson, 261 Ga. App. 165, 582 S.E.2d 151 (2003).