Inkas Coffee Distribution Realty and Equipment LLC (Inkas) purchased a 2001 Ford F250 for $36,340…

Inkas Coffee Distribution Realty and Equipment LLC (Inkas) purchased a 2001 Ford F250 for $36,340 which was to be paid in 60 months. The retail installment agreement signed by Inkas was assigned to Charter One Auto Finance. Charter One Auto Finance was granted a security interest in the motor vehicle on September 20, 2000, and the security interest was noted on the title to the vehicle. On May 10, 2001, Inkas delivered the vehicle to Connecticut International Parking, LLC, which was in the business of storing motor vehicles at its open-air parking lot in East Granby, Connecticut. Pursuant to an oral agreement, Connecticut International agreed to store the automobile at the rate of $9.25 per day and to care for it by regularly starting and moving the car on a monthly basis so that its engine, mechanical system, and tires would remain in operating condition. Between May 10, 2001, and May 16, 2004, Inkas incurred $9,851 in storage fees. Inkas defaulted on its obligations under the installment agreement by not making payments due from July 4, 2001, until March 2005. On April 16, Charter, claiming that it had rights in the motor vehicle, demanded that Connecticut International deliver it to Charter. Connecticut International offered to do so upon proof of Charter’s rights, but demanded that it be paid for the storage charges owed to it. Charter refused, and brought suit to recover the car. Inkas filed for bankruptcy in 2001. While that action was dismissed, both Charter and Connecticut International concluded that Inkas was not in a position to pay either of them. By virtue of its prior perfected security interest in the motor vehicle, does Charter have the right to recover the vehicle without first reimbursing Connecticut International for its storage fees?

 

 

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