Lewistown Propane Co. v. Ford

Summary

The Supreme Court of Montana held that a judgment creditor could levy on an aircraft that the judgment debtor had previously conveyed to a third party but whose transfer was not recorded with the Federal Aviation Administration. Applying Montana precedent concerning unrecorded transfers of personal property, the court concluded that the creditor was entitled to rely on FAA ownership records and that the third party's later-recorded interest could not defeat the levy.

Holdings

1. A judgment creditor is entitled to rely on FAA ownership records, and an aircraft purchaser's unrecorded ownership interest is invalid against the judgment creditor when the creditor levies before the transfer is recorded.
2. A later recording of the aircraft transfer does not defeat the judgment creditor's previously executed levy when the transferors knew of the levy at the time of recording.

Questions Presented

1. Whether a judgment creditor may levy on an aircraft when the judgment debtor conveyed it to a third party before entry of judgment but the conveyance was not recorded with the Federal Aviation Administration.

Disposition

reversed