322 Ga. App. 708
Ga. Ct. App.2013Background
- GECC repossessed two heavy logging machines from Mason Logging after default on payments; GECC resold the equipment and sought a deficiency; Mason challenged the commercial reasonableness of the sale in pleadings and in response to GECC’s summary judgment motion; GECC submitted three affidavits detailing remarketing practices, resale value, and account status; Mason countered with the owner’s lay opinion on value based on industry experience; the trial court granted summary judgment, finding GECC’s evidence credible and the sale commercially reasonable, and Mason appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether sale of collateral was commercially reasonable as a matter of law | Mason argued the resale price was not the fair value | GECC contends its affidavits show reasonable sale and value | No; genuine issues of material fact remained, reversal warranted |
Key Cases Cited
- AKA Mgmt., Inc. v. Branch Banking & Trust Co., 275 Ga. App. 615 (Ga. App. 2005) (summary judgment improper if value disputes exist; lay/opinion evidence admissible when probative)
- Brewer v. Trust Co. Bank, 205 Ga. App. 891 (Ga. App. 1992) (secured party must prove sale terms and fair value of collateral)
- Versey v. Citizens Trust Bank, 306 Ga. App. 479 (Ga. App. 2010) (affirming burden to show resale price equalled fair market value)
- Granite Equip. Leas. Corp. v. Marine Dev. Corp., 139 Ga. App. 778 (Ga. App. 1976) (reiteration that value and terms must be shown to establish commercial reasonableness)
- Hill v. Fed. Employees Credit Union, 193 Ga. App. 44 (Ga. App. 1989) (nonexpert value opinions must have foundation and reasoning)
- John Deere Constr. & Forestry Co. v. Mark Merritt Constr., Inc., 297 Ga. App. 743 (Ga. App. 2009) (affidavit evidence may show knowledge/experience relevant to value)