Credit Acceptance Corporation v. Hale

Summary

The Florida First District Court of Appeal reversed a final judgment denying Credit Acceptance Corporation’s motion for default final judgment in a deficiency action. The court held that the secured party was not required to prove the commercial reasonableness of the collateral sale because the debtor did not place that issue in dispute, and remanded for entry of judgment for the deficiency balance, prejudgment interest, and costs.

Holdings

1. A secured party need not prove that disposition of collateral was commercially reasonable unless the debtor places the secured party's compliance in issue.
2. The trial court erred in denying Credit Acceptance's motion for default judgment because Credit Acceptance was not required to prove the commercial reasonableness of the collateral sale under the circumstances.

Questions Presented

1. Whether a secured party seeking a deficiency judgment must prove that disposition of collateral was commercially reasonable when the debtor has not placed the secured party's compliance in issue.
2. Whether the trial court erred by denying Credit Acceptance's motion for default final judgment on the ground that Credit Acceptance had not proven the commercial reasonableness of the collateral disposition.

Disposition

reversed_and_remanded