Keep Fresh Filters, Inc. v. Reguli

Connie L. Reguli borrowed money from her daughter, Iona Senecal (defendants), to buy a BMW automobile (BMW), which Reguli purchased on April 7, 1990. On June 11, 1990, Reguli applied to the Motor Vehicle Division (MVD) for certificate of title and vehicle registration. The application certified that there were no liens on the BMW. Accordingly, on July 20, 1990, the MVD issued a certificate of title showing Reguli as the BMW’s owner without any liens. On January 9, 1991, Keep Fresh Filters, Inc. (Keep Fresh Filters) sued Reguli to enforce a note. On January 29, 1991, Reguli and Senecal requested a new certificate of title from the MVD showing that Senecal had a lien on the BMW. On February 7, 1991, the MVD notified Reguli that it rejected the request due to improper documentation. On March 15, 1991, Keep Fresh Filters obtained a default judgment against Reguli. Keep Fresh Filters recorded a copy of the judgment on May 7, 1991. On May 8, 1991, a writ of execution was issued directing the sheriff to take possession of the BMW. On May 15, 1991, the sheriff’s office took possession of the BMW. Approximately two weeks later, Reguli and Senecal furnished proper documentation of Senecal’s lien to the MVD. Accordingly, on May 28, 1991, the MVD issued a new certificate of title showing Senecal’s lien and relating the lien back to the January 29, 1991 application. The sheriff unilaterally returned the BMW to Reguli based on the new certificate of title. Thereafter, Keep Fresh Filters sued Reguli and Senecal seeking, among other things, a determination that it had priority to the BMW. The trial court ruled for Keep Fresh Filters.