## Facts

- James Koontz purchased a 1988 Plymouth Sundance under a retail installment contract requiring 60 monthly payments of $185.92; Chrysler Credit Corporation held the secured interest as assignee.
- Koontz defaulted in early 1991, and Chrysler warned it would repossess if the default was not cured.
- Koontz told Chrysler he would try to catch up, did not want repossession, and instructed Chrysler not to enter his private property to take the car.
- On April 21, 1991, Chrysler sent an independent repossession company to repossess the vehicle at Koontz’s residence under U.C.C. § 9-503 (810 ILCS 5/9-503).
- The vehicle was taken from Koontz’s front yard. Koontz ran outside and yelled, “Don’t take it.”
- The repossessor did not speak to Koontz, and the repossession was completed without physical confrontation.
- Koontz admitted he did not threaten the repossessor, display a weapon, or physically interfere.
- Chrysler sold the vehicle and sued Koontz for a deficiency balance.

## Issues

1. Whether a self-help repossession under U.C.C. § 9-503 constitutes a breach of the peace when the debtor makes an unequivocal oral protest but does not threaten violence or physically resist.
2. Whether an alleged breach of the peace, if proven, would bar the secured creditor from recovering a deficiency judgment.

## Decision

- The Illinois Appellate Court, Fifth District, affirmed the trial court’s judgment for Chrysler.
- The court held that Koontz’s oral protest, without threats, force, or conduct indicating likely violence, did not amount to a breach of the peace under U.C.C. § 9-503.
- The trial court’s finding that no breach occurred was not against the manifest weight of the evidence.
- Because the repossession was lawful under § 9-503, Chrysler could recover the deficiency (and the awarded attorney’s fees and costs).

## Legal Principles

- After default, a secured party may repossess collateral without judicial process only if it can be done without breach of the peace.  
- “Breach of the peace” is determined from the totality of the circumstances, with emphasis on whether the repossession creates or is likely to create a violent confrontation or serious public disturbance.
- A debtor’s verbal objection is relevant but is not, by itself, a per se breach of the peace; the inquiry centers on whether the debtor’s conduct and surrounding circumstances objectively indicate a threat of violence if repossession continues.
- Appellate review of a bench trial’s breach-of-the-peace determination generally defers to the trial court unless the finding is against the manifest weight of the evidence.
- When repossession is accomplished without breach of the peace, the creditor’s right to seek a deficiency judgment remains available.

## Conclusion

The court held that a debtor’s shouted objection, unaccompanied by threats, weapons, or physical resistance, did not make the repossession a breach of the peace under U.C.C. § 9-503, so the secured creditor could repossess through self-help and obtain a deficiency judgment.


Chrysler Credit Corp. v. Koontz, 277 Ill. App. 3d 1078 (Ill. App. Ct. 5th Dist. 1996)