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The following opinion is presented on-line for informational use only and does not replace the official version. (Mich Dept of Attorney General Web Site - www.ag.state.mi.us)



STATE OF MICHIGAN

FRANK J. KELLEY, ATTORNEY GENERAL


Opinion No. 6186

October 7, 1983

GARAGES:

Authority of Secretary of State to process an application for garage keeper's lien for vehicle registered in another state

1915 PA 312, which authorizes the Department of State to process an application for a garage keeper's lien, does not apply to a vehicle registered in another state.

The Honorable Richard H. Austin

Secretary of State

Michigan Department of State

State Treasury Building

Lansing, Michigan

You have requested my opinion on the following questions:

1. Where a vehicle currently registered in another state or province is left with a Michigan garage keeper and repaired by that garage keeper, should the Department of State process an application for a garage keeper's lien in the same manner as it would process an application on a vehicle which is currectly registered in the State of Michigan?

2. Is it proper for the Department of State to ultimately issue a free and clear title to the purchaser of a vehicle at a garage keeper lien sale, even though there is another title outstanding on the vehicle issued by the state or province where the vehicle was registered?

1915 PA 312; MCLA 570.301 et seq; MSA 9.1711 et seq, hereinafter the Act, sets forth the requirements for the acquisition and enforcement of a garage keeper's lien. 1915 PA 312, supra, Sec. 1, in pertinent part, provides:

'Every garage keeper who in pursuance of any contract, expressed or implied, written or unwritten, furnishes any labor, material or supplies shall have a lien upon any vehicle stored, maintained, supplied or repaired by him for the proper charges due for the storage, maintenance, keeping and repair thereof and for gasoline, electric current or other accessories and supplies furnished or expenses bestowed or labor performed thereon at the request or with the consent of the registered owner of the vehicle, whether such owner be a conditional sale vendee or a mortgagor remaining in possession or otherwise, and such garage keeper may detain the vehicle at any time it is in his possession within 90 days after performing the last labor or furnishing the last supplies for which the lien is claimed. The lien insofar as the same is for labor and material furnished in making repairs upon a vehicle shall have priority over all other liens upon the vehicle.'

Section 2 of 1915 PA 312, supra, authorizes public sale of a vehicle subject thereto by the garage keeper when the incurred charges are not paid within 45 days after personal service, or service by either registered or certified mail addressed to the last known address of the vehicle's registered owner, of a claim of lien together with an itemized statement of the account upon the registered owner of the vehicle. 1915 PA 312, Sec. 2, supra, further provides that:

'Before any sale is held, the garage keeper shall give to the department of state and to any lien holder, as shown by the records of the department, and to the registered owner of the vehicle, not less than 10 days written notice of the time and place of the sale. Notice to the registered owner of such vehicle shall be given personally or by certified mail, directly to the last known address of the registered owner.' (Emphasis added.)

The Legislature has made no express provision on 1915 PA 312, supra, for a garage keeper's lien on vehicles registered in other states. Whether the Legislature intended to include vehicles registered in other states within the ambit of 1915 PA 312, supra, is not clear. Thus, it is necessary to examine the provisions of 1915 PA 312, supra, to ascertain and give effect to legislature intention. Production Credit Associations of Lansing v Treasury Department, 404 Mich 301; 372 NW2d 10 (1978).

1915 PA 312, Sec. 1, supra, creates a lien upon 'any vehicle' stored, maintained, supplied or repaired by a garage keeper, and does not expressly limit the liens to vehicles registered in Michigan. However, 1915 PA 312, Sec. 2, supra, requires the garage keeper to provide prior notice of the time and place of the vehicular sale to the Department of State and to all lien holders, as shown by department records. Since the Department of State only has records for vehicles registered in Michigan, lien holders, if any, of vehicles registered in other jurisdictions would not be afforded notice if 1915 PA 312, supra, is construed to encompass all vehicles. This would violate the lien holders right to notice of the sale and of the termination of their interest in the vehicle. In Mullane v Central Hanover Bank & Trust Co, 330 US 306; 70 S Ct 652; 94 L Ed 865 (1950), the Court held that a basic requirement of due process in any proceeding which is to be accorded finality is notice reasonably calculated, under all the circumstances, to apprise interested parties of the pendency of the action and to afford them the opportunity to present objections. See also, Ridenour v County of Bay, 366 Mich 225; 114 NW2d 472 (1962).

It is my opinion, therefore, that the Legislature, by specifically providing for notice only to lien holders enumerated in the Michigan Department of State records, intended that the enforcement provisions of the Act apply only to vehicles registered in Michigan.

In light of my answer to your first question, it is unnecessary to answer your second question.

Frank J. Kelley

Attorney General


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