Creditors Deficiency Suit After Disposition of Collateral In Texas
In order for a creditor in a secured transaction to sue for a deficiency after disposition of collateral, the creditor must first comply with the notice provisions of section 9.504 of the code. Greathouse v. Charter Nat'l Bank-Southwest, 851 S.W.2d 173, 176 (Tex. 1992); Tanenbaum v. Economics Lab., Inc., 628 S.W.2d 769, 772 (Tex. 1982).
In a suit for deficiency, it is the creditor's burden to plead that notice has been given to the debtor that the creditor intends to dispose of the collateral. Datapoint, 774 S.W.2d at 364; see also Greathouse, 851 S.W.2d at 176-77 (creditor in a deficiency suit must plead that disposition of the collateral was commercially reasonable).
A creditor may meet its pleading requirement on disposition by pleading the issue specifically or by averring generally that all conditions precedent have been performed or have occurred. Greathouse, 851 S.W.2d at 176-77.