Rotta v. Early Industrial Corp.

Dore, J. *

This appeal arises from an action to recover payment of promissory notes made in connection with the sale of stock certificates and assets of a business. We hold that a creditor may not recover a deficiency judgment against a debtor when the creditor sold collateral without due notice to the debtor. We also decide that the Rotta sale was not conducted in a commercially reasonable manner.

Therefore we reverse.

Facts

Rotta, et al, a group of investors, owned Rotta Sheet Metal Works, Inc. In October 1979 Rotta sold the capital stock and assets to Early Industrial Corporation for $475,000.…