Case assignment

Case Summary

I Was in My Driveway in My Underwear when They Repossessed My Car!

Facts: Koontz entered into an agreement with Chrysler to purchase a 1988 Sundance in exchange for 60 monthly payments of $185.92. When Koontz defaulted on the contract in early 1991, Chrysler notified him that it would repossess the vehicle if he did not make up the missed payments. Koontz notified Chrysler that he would make every effort to catch up on the payments, that he did not want the vehicle to be repossessed, and that Chrysler was not to enter his private property to repossess the car. Chrysler repossessed the car, however, according to the self-help repossession statute of the UCC.

When Koontz heard the repossession in progress, he rushed outside in his underwear and hollered, “Don’t take it,” to the repossessor. The repossessor did not respond and proceeded to take the vehicle. Chrysler sold the car and filed a complaint against Koontz seeking a deficiency judgment for the balance due on the loan. Koontz alleged that the repossession was a breach of the peace. From a judgment in favor of Chrysler, Koontz appealed.

Decision: There was no breach of the peace under Article 9 standards. Koontz only yelled, “Don’t take it”; there was no verbal or physical response, no threat made at the repossessor, nor was there a breach of the peace. To find otherwise would be to invite the ridiculous situation whereby a debtor could avoid a deficiency judgment by merely stepping out of his house and yelling once at those sent to repossess the collateral. Such a narrow definition of the conduct necessary to breach the peace would render the self-help repossession statute useless.

[Chrysler Credit v. Koontz, 661 N.E.2d 1171 (Ill. App. Ct. 1996)]