## Facts

- Indiana Golf and Sports Turf, LLC entered two 2007 equipment purchase agreements for five items of golf course maintenance equipment, financed by Deere Credit, Inc.
- Each agreement included a “co-lessee” addendum signed by Timothy D. Spitler, obligating him personally as a co-lessee/guarantor.
- Indiana Golf defaulted in 2009; Deere repossessed the equipment and later sold it.
- The sale proceeds left an alleged deficiency of $31,946.05.
- Deere sued Spitler in 2012 in the Wood County Court of Common Pleas to recover the deficiency.
- Spitler opposed liability, arguing defective notice of disposition and that the sale was not commercially reasonable because participation was limited to wholesaling entities.
- The trial court granted Deere summary judgment for the deficiency, and Spitler appealed.

## Issues

1. Whether summary judgment was improper because there was a genuine issue of material fact that Deere failed to send statutorily sufficient notice of the disposition under Ohio’s UCC (R.C. 1309.611 and 1309.613).
2. Whether summary judgment was improper because Deere’s method of sale—allegedly restricting participation to wholesale dealers—created a genuine issue of material fact that the disposition was not commercially reasonable under R.C. 1309.610.

## Decision

- The court of appeals affirmed summary judgment for Deere.
- The court held Deere’s evidence showed Article 9-compliant notification of disposition, and Spitler failed to produce evidence creating a triable fact dispute.
- The court held the disposition was commercially reasonable for specialized equipment sold through customary market channels, and Spitler offered no competent evidence that the sale method or terms were unreasonable.
- Deere was entitled to recover the deficiency from Spitler in the amount of $31,946.05.

## Legal Principles

- Summary judgment is proper when there is no genuine issue of material fact, the movant is entitled to judgment as a matter of law, and reasonable minds could reach only one conclusion against the nonmovant when evidence is construed in the nonmovant’s favor.
- After default, a secured party may dispose of collateral, but every aspect of the disposition (method, manner, time, place, and terms) must be commercially reasonable. (R.C. 1309.610(A))
- Before disposing of collateral, the secured party must send reasonable authenticated notification to the debtor and specified parties; compliance turns on reasonable steps to notify, not proof of actual receipt. (R.C. 1309.611(B))
- For a public disposition, the notice must include the information required by statute, including the time and place of sale. (R.C. 1309.613(A)(1))
- An obligor opposing a deficiency on notice or commercial-reasonableness grounds must produce Civ.R. 56 evidence sufficient to create a genuine dispute on those defenses.

## Conclusion

The appellate court upheld a deficiency judgment against a guarantor/co-lessee because the creditor’s evidence established statutory notice and a commercially reasonable sale of specialized equipment, and the opponent failed to present competent evidence creating a genuine issue for trial.


Deere Credit, Inc. v. Spitler, No. WD-13-034, 2014-Ohio-964 (Ohio Ct. App. 6th Dist. 2014)