## Facts

- Americredit financed James Strong’s 1998 purchase of a 1997 Ford Taurus in New York and perfected its security interest by notation on the New York certificate of title.
- Strong later moved to Georgia and applied to convert the New York title to a Georgia title by submitting the prior title, a Georgia title application, and fees to the Georgia DMV.
- The Georgia DMV issued a Georgia certificate of title that did not list Americredit’s lien due to a clerical data-entry error.
- The vehicle was subsequently transferred through multiple owners and dealers in Georgia, and none of the later Georgia certificates of title reflected Americredit’s security interest.
- Theresa Metzger purchased the vehicle from a used-car dealer in March 2002 for value, without knowledge of any lien, relying on a Georgia title showing no security interest.
- In October 2002, Americredit located the vehicle, repossessed it from Metzger’s residence, and sold it at auction.
- Metzger sued for conversion and related claims; both sides sought summary judgment on conversion.
- The trial court granted partial summary judgment to Americredit on conversion, concluding Americredit’s security interest remained perfected and enforceable despite the DMV error.

## Issues

1. Whether a good-faith purchaser for value who receives a Georgia certificate of title that fails to show a prior security interest takes the vehicle free of that interest under O.C.G.A. § 11-9-337(1), even if the secured party originally perfected in another state.
2. Whether Americredit’s repossession and sale of the vehicle could support a conversion claim if Metzger took free of Americredit’s security interest.

## Decision

- The Court of Appeals of Georgia reversed the grant of partial summary judgment to Americredit on the conversion claim.
- The court held that Metzger was a good-faith purchaser for value and received a Georgia certificate of title that failed to show Americredit’s security interest.
- Applying O.C.G.A. § 11-9-337(1), the court held Metzger took the vehicle free of Americredit’s security interest.
- Because Metzger took free of the lien as against Americredit, Americredit’s repossession could be wrongful and could constitute conversion.
- The case was remanded for further proceedings.

## Legal Principles

- Under O.C.G.A. § 11-9-337(1), a purchaser of certificate-of-title goods who buys in good faith, gives value, and receives a Georgia-issued certificate of title that does not show a security interest may take free of that security interest as provided by the statute.
- The statute applies even when the secured party’s interest was originally perfected in another jurisdiction and later omitted from a Georgia certificate of title.
- A secured party’s continued perfection does not, by itself, defeat the statutory protection afforded to qualifying purchasers who rely on an issued Georgia title that omits the lien.
- When a state-issued certificate of title erroneously omits a lien, the statutory risk allocation favors the protected purchaser rather than the secured party as against that purchaser.

## Conclusion

The court held that a buyer who purchased in good faith for value and relied on a Georgia certificate of title omitting a lien took free of the prior secured party’s out-of-state perfected interest under O.C.G.A. § 11-9-337(1), so summary judgment for the secured party on the buyer’s conversion claim was improper.


Metzger v. Americredit Fin. Servs., Inc., 273 Ga. App. 453, 615 S.E.2d 120 (Ga. Ct. App. 2005)