Court of Appeal (Unpub. Ark.) Finds No Breach of the Peace in Repossession Case

In Minor v. Chase Auto Finance Corp. 2010 Ark. App. 670, 2010 WL 3902754 (Ark.App. 2010), the Court of Appeal affirmed a directed verdict in favor of an automobile finance company on the Plaintiff’s claim of breach of the peace during a repossession, explaining:

Minor’s first remaining argument is that he produced substantial evidence of wrongful repossession, conversion, and violation of the ADTPA because Chase breached the peace during repossession. A secured party may repossess collateral without judicial process if he proceeds “without breach of the peace,” Ark.Code Ann. § 4-9-609 (Repl.2001), but if the secured party’s repossession is wrongful, it may constitute the tort of conversion.   Mercedes-Benz Credit Corp. v. Morgan, 312 Ark. 225, 850 S.W.2d 297 (1993). Additionally, a party may violate the ADTPA by engaging in “unconscionable, false, or deceptive act in business, commerce, or trade.” Ark.Code Ann. § 4-88-107(a)(10) (Repl.2001). The word “unconscionable” has been defined to mean an act that affronts the sense of justice, decency, and reasonableness.   Baptist Health v. Murphy, 365 Ark. 115, 226 S.W.3d 800 (2006).  ¶  According to Minor, Chase’s agent, Joshua Niles, breached the peace when he decided to tow the vehicle despite Minor’s request that he stop the repossession. We disagree. The agent employed no force or threats of violence. See Ford Motor Credit v. Herring, 267 Ark. 201, 589 S.W.2d 584 (1979). Nor did the parties exchange harsh words, raise their voices, behave in a confrontational manner, or otherwise risk the public order. Furthermore, Niles entered Minor’s driveway and obtained access to his vehicle without passing through any gates, fences, or other obstructions. See Oaklawn Bank v. Baldwin, 289 Ark. 79, 709 S.W.2d 91 (1986). Minor also agreed in his contract with Chase that, in the event of repossession, Chase could enter the premises where the vehicle was located. Viewing these circumstances in their entirety, we see no substantial evidence that Chase’s agent breached the peace in repossessing Minor’s vehicle. We therefore find no error on this point.