Greathouse v. Charter National Bank-Southwest

OPINION

HECHT, Justice.

Section 9.504 of the Uniform Commercial Code, Tex.Bus. & Com.Code § 9.504, requires that collateral must be disposed of in a commercially reasonable manner. The Code, however, does not allocate the burden of pleading and proving whether this requirement has been met in an action by a creditor against a debtor for the deficiency due after disposition of the collateral. We granted writ of error to resolve a split among Texas courts of appeals over this procedural issue.

Forrest Allen & Associates, Inc. defaulted on a note payable to Charter National Bank-Southwest,…