Woodward v. Resource Bank
In Woodward v. Resource Bank, 246 Va. 481 (436 SE2d 613, 10 Va. Law Rep. 492) (1993) the Supreme Court of Virginia held that the "failure to give the required notice of sale of collateral made the sale commercially unreasonable," giving rise to a rebuttable presumption that the collateral's value equaled the indebtedness secured and extinguished the debt. Id. at 487-488.
This presumption could be overcome "if the secured party proved that the sale price represented the fair and reasonable value of the collateral." Id. at 488.
The secured party in Woodward, however, failed to make this showing, and the court held the presumption was not rebutted, the indebtedness accordingly was extinguished, and the secured party was not entitled to seek a deficiency judgment. Woodward, supra.