Harris County Judge Awards Clear Title in Mechanic's Lien Dispute

In Harris County, Texas, an auto financing company filed a lawsuit against an auto repair shop concerning the possession of a 2008 Mercedes Benz E Class. The plaintiff, a financing entity, had entered into a retail installment contract for the vehicle with an individual who subsequently defaulted on payments, leaving an unpaid balance of $26,789.39. The plaintiff located the vehicle at the defendant's repair shop, where the individual had reportedly sent it for repairs. The defendant refused to surrender the vehicle, demanding $6,300 for services and asserting a mechanic's lien.

The plaintiff filed the lawsuit seeking a writ of sequestration for the vehicle, clear title and possession, and a declaratory judgment recognizing its superior title certificate. The plaintiff argued the defendant's mechanic's lien notice was deficient, lacking a required tax identification number, and that the defendant refused to produce requested work orders. The defendant countered by asserting a valid mechanic's lien under Texas Property Code Section 70.001, claiming proper notification and the right to retain possession for services rendered, supported by an affidavit.

The court granted the plaintiff's application for a writ of sequestration, requiring a $7,250 bond. After an inadvertent non-suit and subsequent reinstatement, the case proceeded to a bench trial. On December 21, 2023, the court awarded the plaintiff clear title and possession of the vehicle. However, the court also initially ruled in favor of the defendant on a Quantum Meruit claim, awarding $6,330.73 in actual damages, $474.66 in prejudgment interest, and $6,600.00 in attorney's fees, totaling $13,405.39. This monetary judgment for the defendant was later vacated on March 1, 2024, when the court granted the plaintiff's motion for a new trial.