Erdmann v. Rants

LEVINE, Justice.

The question presented is whether a defaulting debtor is entitled to recover statutory damages under NDCC § 41-09-53(1) [UCC 9-507], when repossessed secured property, a consumer good, was sold by the creditors in a commercially reasonable manner, but without prior notice of the sale to the debtor. We hold that the debtor is entitled to statutory damages for the creditors’ failure to give prior notice of the sale and, therefore, we reverse and remand.

Richard and Lorraine Erdmann sold their mobile home, which was subject to a purchase money security interest with a Fargo bank,…