726 F.Supp.3d 399
E.D. Pa.2024Background
- Rashay Gonzalez purchased a 2021 Mitsubishi Mirage with financing from Santander Bank but later defaulted on the loan.
- Santander assigned the repossession of the vehicle to PKW, who then subcontracted it to VJ Wood Recovery, LLC.
- On December 16, 2022, VJ Wood's agent attempted to repossess the vehicle outside Gonzalez's residence.
- Gonzalez verbally objected to the repossession while recording the interaction on her phone; there was no physical confrontation or threat of violence.
- The central factual disputes are whether Gonzalez's objection constituted a breach of peace and whether the vehicle was under the agent's control when the objection occurred.
- Gonzalez sued for violations of the FDCPA, unlawful repossession under Pennsylvania's UCC, and conversion; Defendants moved for summary judgment, which is now denied.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does a debtor’s verbal protest alone constitute a breach of the peace during repossession? | Verbal protest is sufficient for breach of peace | Only repossessor's conduct can cause breach; verbal protest alone insufficient | Verbal objection may constitute a breach of peace; jury must decide if it did here |
| Does a breach of the peace extinguish the right to repossess? | Breach of peace voids right to repossess | Right to repossess remains unless conduct is aggressive | Agent’s right to repossess ends upon breach of peace, if it happened before agent had control |
| Did the repossessor control the vehicle before any breach? | Agent did not control vehicle at time of objection | Agent had gained control before objection | Factual dispute; jury must decide when agent gained control |
| Summary judgment standard application | Genuine issues of fact exist | No genuine issues of material fact | Genuine issues preclude summary judgment |
Key Cases Cited
- Hensley v. Gassman, 693 F.3d 681 (6th Cir. 2012) (holding that debtor's verbal objection can create a breach of the peace during repossession)
- Marcus v. McCollum, 394 F.3d 813 (10th Cir. 2004) (repossessors breach the peace if they meet resistance from debtor, even if polite)
- Anderson v. Liberty Lobby, Inc., 477 U.S. 242 (1986) (summary judgment standard: must be genuine issue of material fact)
- Celotex Corp. v. Catrett, 477 U.S. 317 (1986) (party moving for summary judgment must demonstrate absence of genuine issue of material fact)