Affirming a trial court's decision, an Florida appellate court ruled an insurance company's salvage vehicle title certificate was superior to a towing company's title certificate for the same vehicle where the towing company did not provided timely notice of its lien as required by Florida law.

The Case

On March 15, 2014, at the request of law enforcement, Kenneth L. Dowell, d/b/a Ken's Paint & Body, towed a disabled 2011 Jeep Compass from a crash scene to his towing business. At the scene of the accident, law enforcement provided Dowell with the vehicle owner's name and address, and the vehicle tag and identification numbers.

After the Jeep went unclaimed for almost two weeks,  Dowell sent a notice of lien and propsed sale to the Jeep's owner. The notice informed the owner that Dowell was in possession of the vehicle and claimed a lien against it for a $100 towing fee, $35 administrative fee, $300 lien filing fee and $288 in storage fees, which would continue to accumulate at $21.30 per day.

Among other disclosures, the notice stated the lien was subject to enforcement pursuant to Florida Statutes Section 713.78 and the Jeep would be auctioned April 21, 2014, unless it was redeemed by Dowell with payment “as allowed by law.”

The sale proceeded as planned, and Dowell was the sole bidder. Afterward, he obtained a certificate of title to the Jeep issued by the state.

According to Dowell, State Farm, the Jeep's insurer, subsequently applied for and received a salvage vehicle title certificate from Georgia when it knew Dowell has bought the Jeep.