In the instant case, of course, there is no suggestion that Peters was not in default under its loan restructuring agreement with Fleet. Finally, Peters relies on Sheffield Progressive, Inc. v. Kingston Tool Co., 405 N.E.2d 985 (Mass.App.Ct. 1980), which upheld a denial of a motion to dismiss a "collusive foreclosure" claim that collateral worth over $3 million had been sold in a private foreclosure sale for only $879,159, the full amount of the secured debt. Id. at 987.
In support of his argument that under section 9.504(d) a private foreclosure sale may be nullified because of the purchaser's lack of good faith alone, Thomas cites two cases: In re Four Star Music Co., 2 B.R. 454, 29 U.C.C.Rep. 343 (Bkrtcy.M.D.Tenn. 1979); Sheffield Progressive, Inc. v. Kingston Tool Co., 10 Mass. App. 47, 405 N.E.2d 985, 29 U.C.C.Rep. 292 (1980). Neither one supports Thomas' proposition.
Therefore, cases cited by HFH indicating that the secured party may be liable to junior or unsecured creditors are inapposite. See Liberty National Bank v. Acme Tool, 540 F.2d 1375 (10th Cir. 1976); and Sheffield Progressive, Inc. v. Kingston Tool Co., 10 Mass. App. Ct. 47, 405 N.E.2d 985 (1980). Those cases involve liquidation conducted by the secured party itself.
The debtor has the right under section 9-507(1) to recover for "any loss caused by a failure to comply" with section 9-504's requirement that the disposition of the collateral be made in a commercially reasonable manner. ( United States v. Conrad Publishing Co. (8th Cir. 1978), 589 F.2d 949, 955; Sheffield Progressive, Inc. v. Kingston Tool Co. (Mass. Ct. App. 1980), 405 N.E.2d 985, 988.) The debtor may recover monetary damages.