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Grant v. Southtrust Bank of Northwest Florida

Citations: 605 So. 2d 171; 18 U.C.C. Rep. Serv. 2d (West) 985; 1992 Fla. App. LEXIS 9995; 1992 WL 227869Docket: No. 91-3794

Court: District Court of Appeal of Florida; September 17, 1992; Florida; State Appellate Court

Narrative Opinion Summary

In this case, a borrower appealed a summary judgment requiring her to pay a deficiency judgment to a bank after defaulting on a security agreement for a repossessed automobile. The primary legal issue revolved around whether the bank complied with the notice requirements for the sale of collateral under Section 679.504 of the Florida Statutes. The borrower argued that she did not receive notice of the sale, but the bank presented evidence of having sent the notice, including an affidavit and a return receipt. The court affirmed the summary judgment, ruling that the statute only necessitates that notice be sent to the debtor, not received. This decision was consistent with U.C.C. provisions and supported by jurisprudence from other jurisdictions, which establish that sending notice in the ordinary course to the debtor’s address suffices for statutory compliance. The court's decision underscored that the creditor met its legal obligations, thereby affirming the deficiency judgment against the appellant.

Legal Issues Addressed

Affirmation of Summary Judgment

Application: The appeals court affirmed the lower court's summary judgment in favor of the creditor, validating that procedural compliance with the statute was sufficient for legal enforcement.

Reasoning: The court affirms the judgment.

Deficiency Judgment and Notice Sufficiency

Application: The court found that sufficient notice, as per statutory requirements, permits the creditor to secure a deficiency judgment, regardless of the debtor's claim of non-receipt.

Reasoning: The court ruled in favor of Southtrust, emphasizing that Section 679.504 requires only that notice be sent to the debtor, not necessarily received.

Notice Requirements under U.C.C. Section 9-504

Application: The court determined that Southtrust Bank complied with the notice requirements by sending, not ensuring receipt of, the notification to the debtor regarding the sale of collateral.

Reasoning: The relevant U.C.C. provisions clarify that notification can be satisfied by mailing or delivering notice in the ordinary course, without needing evidence of actual receipt.