Johnny K. Lima v. Transway Sales Corporation

Summary

Johnny K. Lima contracted Transway Sales Corporation to install an air conditioner in his Volkswagen car for P5,819.50 in March 1981. When Lima complained about poor cooling performance in July 1981, Transway detained the vehicle claiming a mechanic's lien under Article 1731 of the Civil Code. Lima filed suit for replevin and damages, but the trial court found the mechanic's lien valid and dismissed the complaint. All courts ruled that Transway properly exercised its mechanic's lien rights, noting Lima used the air conditioner for months without complaint before raising issues only after receiving a collection letter. The Supreme Court affirmed, emphasizing that mechanics have the right to retain vehicles until paid for work performed, and awarded damages to Transway for the malicious filing of the unfounded complaint.