BankAmerica Housing Services v. P.D.N. & Associates, Inc.

Loran and Saralynn Leasy leased real property from P.D.N. & Associates, Inc. (PDN) (defendant). The Leasys also borrowed money from BankAmerica Housing Services (BankAmerica) (plaintiff), purchased a manufactured home with the borrowed money, and gave BankAmerica a security interest in the manufactured home. BankAmerica perfected its security interest by notating the interest on the manufactured home’s certificate of title. The Leasys joined the manufactured home with the real property leased from PDN, which involved removing the manufactured home’s tongue and wheels, placing the manufactured home on the foundation, and knocking down a wall from the real property’s existing structure. Thereafter, the Leasys stopped making payments to both PDN and BankAmerica. Accordingly, BankAmerica filed a replevin action seeking to remove the manufactured home from PDN’s real property so it could take possession of the manufactured home. PDN argued that the manufactured home had become a fixture on its real property, which rendered BankAmerica’s security interest invalid because BankAmerica had not filed a fixture filing. The trial court ruled in PDN’s favor and found that the manufactured structure was not personal property subject to replevin because it had become a fixture and removing the manufactured home would cause damage to the remaining structure. BankAmerica appealed.