Possessory Liens / Landlord Liens That Trump a Lessor’s Right to Equipment

"A ""possessory lien"" is defined as an interest, other than a security interest or an agricultural lien, that secures payment or performance of an obligation for services or materials furnished by a person in the ordinary course of the person's business; that is created by statute or rule of law in favor of the person; and whose effectiveness depends on the person's possession.

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. ORC §1309.333"

Relevant cases in Ohio recognizing certain types of possessory liens include, and have held:(1) an execution lien on a van from a judgment creditor had priority over a consensual lien by a secured creditor where the secured creditor’s lien was discharged prior to the sheriff taking possession of the van (In re Young, 146 B.R. 717 (Bankr. S.D. Ohio 1992).(2) a secured creditor’s lien against a Chapter 13 debtor automobile had priority over a statutory artisan;s lien against the automobile for labor and materials extended to repair and restore the vehicle (In re Cox, 133 B.R. 198, 16 U.C.C. Rep. Serv.2d 1193 (Bankr. N.D. Ohio 1991)).(3) where two liens competed and one was a federal tax lien, priority was determined by federal law (In re Terwillinger’s Catering Plus, Inc., 911 F.2d 1168 (6th Cir. 1990)).(4) specific priority granted by statute to liens noted upon a certificate of title of a motor vehicle makes such liens valid against other liens and prevails over the general provision of the Uniform Commercial Code relating to artisans’ liens (National City Bank v. Jim Roberts Buick, Inc., 24 Ohio Misc.2d 18, 494 N.E.2d 470 (Mun. Ct. 1986).At common law, a landlord does not have a lien upon the personal property of a tenant merely because of the existence of a landlord-tenant relationshipBob Bay & Son, Co. v. Circle Inv. Corp., 2018-Ohio-2632, 114 N.E.3d 268 ¶ 15 (4th Dist.).