Abstract
When a rule of law becomes unyielding to equitable considerations and contradicts Code policies, a court should look to alternative approaches. The consequence of creditor misbehavior under section 9-504(3) should be consistent with Code policies of maximizing the resale value of the collateral and compensating injured parties without punitive sanctions. The rebuttable presumption approach allows the secured party to recover a deficiency judgment upon a showing that the collateral's fair market value was realized at the disposition. This approach compensates the debtor for the creditor's misconduct by placing a burden on the creditor to rebut a presumption in favor of the debtor. On the other hand, the creditor receives compensation for the debtor's default by recovering a deficiency judgment after properly rebutting the presumption. This approach balances the interests of both parties and compensates both while penalizing neither. The approach is consistent with Code policies and should be adopted in Utah.
Recommended Citation
Dalton, Elizabeth
(1986)
"The Consequences of Commercially UnreasonableDispositions of Collateral: Haggis Management,Inc. v. Turtle Management, Inc.,"
Utah Law Review: Vol. 1986:
No.
4, Article 6.
Available at:
https://dc.law.utah.edu/ulr/vol1986/iss4/6