Metzger v. Americredit Financial Services, Inc.
Court of Appeals of Georgia
615 S.E.2d 120 (2005)
James Strong bought a car in New York, financed by Americredit Financial Services, Inc. (defendant), which took and perfected a security interest reflected on the New York title. Strong later moved to Georgia and submitted his title to the Georgia DMV, which mistakenly issued a new certificate of title that omitted Americredit's lien. The car changed hands several times before Theresa Metzger (plaintiff) bought it from a used car lot in 2002, with no notice of Americredit's interest. When Americredit repossessed the car, Metzger sued for conversion. The trial court granted summary judgment to Americredit, reasoning that its perfected security interest defeated the conversion claim, and Metzger appealed.
Whether a good-faith purchaser who takes delivery of goods without notice of a prior out-of-state perfected security interest takes the goods free of that interest when the interest is not reflected on the certificate of title.