Bank of Guam v. Del Priore

In Bank of Guam v. Del Priore, 2001 Guam 10, the Court determined that the failure to plead and prove the notice requirement of 13 GCA 9504(3) prevented BOG from obtaining a deficiency judgment. Id. PP 8, 30. Del Priore raised this question for the first time on appeal, and we exercised our discretion to address the issue, which was purely one of law. Id. P 27. Finding the Uniform Commercial Code of Guam to be silent on the effect of failure to plead and prove notice, this court discussed the lines of authority concerning the three divergent rules adopted by other jurisdictions. Id. PP 10-14. After a lengthy discussion, we adopted the absolute bar rule, finding it to be the best and most reasoned of the three. Id. P 19. The absolute bar rule demands compliance with the notice requirement of section 9504(3) as a condition precedent to receiving a deficiency judgment. Following our announcement of the adoption of the absolute bar rule, we vacated the decision of the trial court and remanded for proceedings consistent with our Opinion. Id. P 30. The Court held in Del Priore that "compliance with the notice requirement of 13 GCA 9504(3) is a condition precedent to receiving a deficiency judgment." Id. P 30. The notice provision of 13 GCA 9504(3) requires the secured party to provide reasonable notification of the time and place of the sale to the debtor. The holding was limited to the determination of what effect, if any, the failure to plead and prove the notice requirement contained in section 9504(3) would have on the ability of BOG to obtain a deficiency judgment. Id. P 8. 13 GCA 9504(3) provides, in part: Disposition of the collateral may be by public or private proceedings and may be made by way of one or more contracts. Sale or other disposition may be as a unit or in parcels and at any time and place and on any terms, but ever aspect of the disposition including the method, manner, time, place and terms must be commercially reasonable. Unless collateral is perishable or threatens to decline speedily in value or is of a type customarily sold on a recognized market, reasonable notification of the time and place of any public sale . . . shall be sent by the secured party to the debtor . . . .