Peoples Bank of Polk County v. Roberts
Decision Date | 14 January 1986 |
Docket Number | No. 85-3266,85-3266 |
Citation | 779 F.2d 1544 |
Parties | 42 UCC Rep.Serv. 790 PEOPLES BANK OF POLK COUNTY, Plaintiff-Appellee, Cross-Appellant v. Arlis L. ROBERTS and Nadine Roberts, his wife, Defendants-Appellants, Cross-Appellees. |
Court | U.S. Court of Appeals — Eleventh Circuit |
John L. Taylor, Jr., Otto F. Feil, III, Atlanta, Ga., Charles C. Lane, Lau, Lane Pieper & Asti, Tampa, Fla., for defendants-appellants, cross-appellees.
Gerald M. Taylor, Tampa, Fla., for plaintiff-appellee, cross-appellant.
Appeals from the United States District Court for the Middle District of Florida.
Before HILL and HENDERSON, Circuit Judges, and TUTTLE, Senior Circuit Judge.
In 1982, the Peoples Bank of Polk County ("the Bank") made two loans to Arlis and Nadine Roberts ("the Roberts") secured by 2,805 shares of stock in the Independent Bank of Florida. In June, 1983, after commencing suit on the notes, the Bank sold the stock for $20.00 per share. The parties stipulated that the Roberts were given no prior notice of the sale and did not waive their right to receive such notice. Following a nonjury trial, the district court awarded the Bank a deficiency judgment in the amount of $92,217.19. The Roberts appeal, claiming the lack of notice barred a deficiency judgment as a matter of law. 1
Under Erie Railroad Co. v. Tompkins, 304 U.S. 64, 58 S.Ct. 817, 82 L.Ed. 1188 (1938), a federal court in a diversity action must apply the controlling substantive law of the state. In this case, the district court applied Florida law. 2
The Roberts' right to receive notice of the sale of collateral is governed by Fla.Stat.Ann. Sec. 679.504(3) (West 1985 Supp.) which requires that
Unless collateral is perishable or threatens to decline speedily in value or is of a type customarily sold on a recognized market, reasonable notification of the time and place of any public sale or reasonable notification of the time after which any private sale or other intended disposition is to be made shall be sent by the secured party to the debtor if he has not signed after default a conspicuous statement renouncing or modifying his right to notification of sale....
With one exception, every decision of the Florida district courts of appeal holds a creditor's failure to give prior notice of a disposition of collateral bars the creditor's right to a deficiency as a matter of law. See e.g., Hayes v. Ring Power Corp., 431 So.2d 226 (Fla.Dist.Ct.App.1983) (First District); Dependable Insurance Co. v. Landers, 421 So.2d 175 (Fla.Dist.Ct.App.1982) (Fifth District); Washington v. First National Bank of Miami, 332 So.2d 644 (Fla.Dist.Ct.App.1976) (Third District); Hepworth v. Orlando Bank & Trust Co., 323 So.2d 41 (Fla.Dist.Ct.App.1975) (Fourth District). The Second District Court of Appeal, which would have reviewed this case had it been brought in state court, follows this nearly unanimous rule. Turk v. St. Petersburg Bank and Trust Co., 281 So.2d 534 (Fla.Dist.Ct.App.1973); Siltzer v. North First Bank, 445 So.2d 649 (Fla.Dist.Ct.App.1984). Only one case, from the Third District Court of Appeals, follows a different rule. Ayares-Eisenberg Perrine Datsun, Inc. v. Sun Bank of Miami, 455 So.2d 525 (Fla.Dist.Ct.App.1984) (Third District) ( ). The Florida Supreme Court has not addressed the issue but we are "bound to adhere to decisions of the...
To continue reading
Request your trial-
Bravo v. U.S.
...as would have been applied in the specific courts available to plaintiff in the state system."); see also Peoples Bank of Polk County v. Roberts, 779 F.2d 1544, 1546 (11th Cir.1986) (following a particular District Court of Appeal decision because "it is the law that would have been applied......
-
General Coffee Corp., In re
...Silverberg v. Paine, Webber, Jackson & Curtis, Inc., 710 F.2d 678, 690 (11th Cir.1983); see also Peoples Bank of Polk County v. Roberts, 779 F.2d 1544, 1545 (11th Cir.1986) (per curiam); King v. Guardian Life Ins. Co., 686 F.2d 894, 898 (11th Cir.1982). We believe, however, that Palmland Vi......
-
Allen v. United Servs. Auto. Ass'n
...and, if none, those of the state's intermediate court where suit could have been brought) (citing Peoples Bank of Polk County v. Roberts, 779 F.2d 1544, 1545-46 (11th Cir.1986); Farmer v. Travelers Indemnity, Co., 539 F.2d 562, 563 (5th Cir.1976)); see also CDC Builders, Inc. v. Amerisure M......
-
Inlet Condo. Ass'n, Inc. v. Childress Duffy, Ltd.
...1154, 1164 (11th Cir. 2008) (citing Farmer v. Travelers Indem. Co., 539 F.2d 562, 563 (5th Cir. 1976), and Peoples Bank of Polk Cnty. v. Roberts, 779 F.2d 1544, 1546 (11th Cir. 1986)). This case was filed in the Miami Division of the Southern District of Florida; had it been filed in state ......