Holt v. Peoples Bank of Mt. Washington

LAMBERT, Justice.

The issue presented is whether any failure of a secured party to dispose of the collateral in a commercially reasonable manner necessarily results in a forfeiture of its right to a deficiency judgment. Decisions of the Court of Appeals of Kentucky in Bank Josephine v. Conn, Ky.App., 599 S.W.2d 773 (1980), Rexing v. Doug Evans Auto Sales, Inc., Ky.App., 703 S.W.2d 491 (1986), and Bailey v. Navistar Financial Corp., Ky.App., 709 S.W.2d 841 (1986), broadly hold that a secured party found to be in violation of the requirements of KRS 355.9-504 is estopped to claim entitlement to…