Hicklin v. Onyx Acceptance Corp

In Hicklin v. Onyx Acceptance Corp., 970 A.2d 244, 253 (Del. 2009), a secured creditor took possession of a vehicle after default on a loan and proceeded to sell it at auction. Id. at 248. The creditor then sought a judgment to recover the deficiency balance left after the proceeds of the sale were applied against the amounts still owed to it by the debtor. Id. The debtor argued that the plaintiff had not complied with the "commercially reasonable" requirements of the UCC, and, therefore, was not entitled to a deficiency judgment. Id. at 249. The Delaware Supreme Court stated in Hicklin, "because this dispute concerns a security interest in property, it is governed by Article 9 of the UCC." Id. Under 6 Del. C. 9-610, after a default, the secured party may dispose of the property in a commercially reasonable fashion. Id. 6 Del. C. 9-610 provides as follows: (a)Disposition after default. -- After default, a secured party may sell, lease, license or otherwise dispose of any or all of the collateral in its present condition or following any commercially reasonable preparation or processing. (b) Commercially reasonable disposition. -- Every aspect of a disposition of collateral, including the method, manner, time, place and other terms, must be commercially reasonable. If commercially reasonable, a secured party may dispose of collateral by public or private proceedings, by one or more contracts, as a unit or in parcels, and at any time and place and on any terms.