North v. Desert Hills Bank (In Re North)

OPINION ON DESERT HILLS’ MOTION FOR PARTIAL SUMMARY JUDGMENT

RANDOLPH J. HAINES, Bankruptcy Judge.

The issue here is whether an application for a duplicate certifícate of title is sufficient to perfect a lien against a motor vehicle when the original certifícate of title remains in existence and reflects no lien. We conclude that it is sufficient to perfect the lien, at least with respect to a hypothetical judicial lien creditor who has not acted in detrimental reliance on the “clean” title.

Factual Background

Gerald North, the Chapter 11 1 Debtor (“North” or “Debtor”), filed a preference action…