Lamp Fair, Inc. v. Pedro v. Perez-Ortiz, Lamp Fair, Inc. v. Pedro v. Perez-Ortiz

BREYER, Circuit Judge.

Does Article 9 of the Uniform Commercial Code permit a secured creditor, over the objection of the debtor, both to retain collateral for the creditor’s own use and also to obtain a deficiency judgment? We believe that, in the circumstances of the present case, the answer is “no.” Accordingly, we reverse the judgment of the district court.

I

Relevant Background Facts

The plaintiff in this diversity case, Lamp Fair, Inc., sold its store to the defendant, Pedro Perez Ortiz, and Perez Ortiz failed to pay the full price. Lamp Fair then repossessed the store, kept it, and sued…