Section 56 Rule of Strict Compliance

• Library: Consumer Law and Practice 2010

It is important to preface the following discussion of the law relating to deficiency suits by pointing out that, in 2001, UCC Article 9 was extensively revised in Missouri. Much of the caselaw cited below relating to deficiency suits was decided before the statute was amended. Before then, the rule that a creditor was barred from seeking a deficiency balance following the sale of collateral applied to consumer and commercial transactions alike. The amendment changed the rule for commercial transactions to the "rebuttable presumption rule," leaving the absolute bar rule in place with respect to consumer transactions. Cub Cadet Corp. v. Mopec, Inc., 78 S.W.3d 205, 213-14 (Mo. App. W.D. 2002); § 400.9-628(a) and (b), RSMo Supp. 2010. Missouri courts continue to apply the absolute bar rule in consumer transactions. See Reno Fin., Ltd. v. Valleroy, 229 S.W.3d 622, 624 (Mo. App. E.D. 2007)...