Chase Equipment Leasing Inc. v. Architectural Air

Order, Supreme Court, New York County (James A. Yates, J.), entered March 24, 2010, which, insofar as appealed from, granted plaintiff’s motion to dismiss the counterclaims for conversion, breach of the implied duty of good faith, and prepossession commercially unreasonable failure to dispose of collateral, and related defenses, unanimously modified, on the law, to deny the motion as to the counterclaim for conversion, and otherwise affirmed, without costs.

Plaintiff, as a secured party, was not obligated to act in a commercially reasonable manner before taking possession of the collateral…