Federal Financial Co. v. Papadopoulos (1998)
Citation: 168 Vt. 621, 721 A.2d 501 · Court: Supreme Court of Vermont · Filed: October 27, 1998 · Docket: 97-348.
Source note (2026-10-18):
- Links on this page to
https://static.case.law/vt/168/cases/0621-01.jsonare an (unofficial Caselaw Access Project copy, retrieved before 2026-10-18; host disallows automated access); no official or otherwise permitted full-text copy was located on 2026-10-18.
Facts
Restaurant equipment secured a loan. After repossession the creditor sold it to the repossessing dealer for USD 1,010 without other bids or independent valuation, then sought a deficiency. Full opinion, unofficial Justia reproduction.
Holding
The court affirmed the finding of commercial unreasonableness and dismissal of the deficiency action under the law then applicable. Opinion, 168 Vt. at 622–624.
Reasoning
The problem was exclusive reliance on a self-interested bid without corroborating market evidence, not the use of private sale itself. Price was one part of the overall evaluation. A dealer’s participation alone did not establish the statutory recognized-market protection. Opinion.
Practical impact
A collateral-sale file should show independent pricing and the reason for its sale method. The decision concerns creditor/debtor deficiency rights, not a holding undoing the equipment purchaser’s title. Opinion.
Good-law status
Current precedential status: cited, not overruled; remedy superseded for post-2001 nonconsumer transactions. The court used former Article 9 and the absolute-bar rule of Chittenden Trust Co. v. Andre Noel Sports (1992). New England Phoenix Co. v. Grand Isle Veterinary Hospital, Inc., 2022 VT 10, ¶ 30, cites this memorandum decision for the secured party’s burden of proving a commercially reasonable disposition. Current § 9-626(a) supplies a nonconsumer rebuttable-presumption deficiency calculation and § 9-626(b) reserves consumer treatment; § 9-627 continues the commercial-reasonableness inquiry. A CourtListener citing search (six results) was reviewed on 2026-10-18; no comprehensive citator certification is claimed. 2022 VT 10; current Article 9.
Applies in →
vermont · equipment-and-machinery · chittenden-trust-v-maryanski-1980
Legal information, not legal advice. Check current law and later treatment before applying this decision to a new transaction.