EX-CELL-O CORPORATION, a Michigan corporation, Plaintiff/Appellee, v. LINCOR PROPERTIES OF ARIZONA, Defendant/Appellant, 158 Ariz. 307

Summary

Appellant entered into a lease agreement with a third party corporation. Appellee held a security interest in equipment purchased from appellee and subsequently brought onto the leasehold by the third party. The third party defaulted on its lease agreement with appellant and its obligation to repay appellee. Appellee filed suit against appellant to replevy the equipment held by appellant pursuant to landlord's lien. The lower court granted appellee's motion for summary judgment. The appellate court affirmed the lower court's decision. The court determined that Ariz. Rev. Stat. §§ 47-9104(2) specifically excluded landlord's liens and that Ariz. Rev. Stat. § 33-362(A) did not address the priority of the lien vis-a-vis other forms of encumbrances. The court took a non-code approach and held appellee's interest as a creditor, which attached prior to the time the equipment was brought onto the leased premises by the third party, took priority over appellant landlord's lien.