Regal Finance Co. v. Tex Star Motors, Inc.

in which Chief Justice JEFFERSON, Justice HECHT, Justice WAINWRIGHT, Justice GREEN, Justice WILLETT, Justice GUZMAN, and Justice LEHRMANN joined.

Under Article 9 of the Uniform Commercial Code, a secured creditor may repossess collateral after a default, dispose *597of it, and then sue for any deficiency that remains after the proceeds from the collateral are applied to the debt. A secured creditor that seeks to recover a deficiency, however, must prove that it acted in a “commercially reasonable” manner in disposing of collateral. In this case, the secured creditor proved that to the satisfaction…