Breach of the Peace in Texas Repossessions

Lenders and repossession companies can only take a vehicle if they do so without causing a breach of the peace.  This is a broad term that does not have a clear definition.  This applies even if the car is in default and they have a right to take it.  This law falls under Article 9 of the Texas Uniform Commercial Code.  The Court of Appeals of Texas, Houston (14th Dist.) explained in Chapa v. Traciers & Assocs., 267 S.W.3d 386, 395 (Tex. Ct. App. 2008):

Most frequently, the expression \”breach of the peace\” as used in the Uniform Commercial Code \”connotes conduct that incites or is likely to incite immediate public turbulence, or that leads to or is likely to lead to an immediate loss of public order and tranquility.\” Johnson v. Grossinger Motorcorp, Inc., 324 Ill.App.3d 354, 257 Ill.Dec. 236, 753 N.E.2d 431, 440 (2001); see alsoMadden v. Deere Credit Servs., Inc., 598 So.2d 860, 865 (Ala.1992) (\”[S]ecured creditor, in exercising privilege to enter upon premises of another to repossess collateral, may not perpetrate `[a]ny act or action manifesting force or violence, or naturally calculated to provide a breach of peace\’ (quoting Crews & Green v. Parker, 192 Ala. 383, 68 So. 287, 288 (1915))\”); Salisbury Livestock Co. v. Colo. Cent. Credit Union, 793 P.2d 470, 474 n. 3 (Wyo.1990) (\”[A]lthough actual violence is not required to find `breach of the peace,\’ within meaning of self-help repossession statute, disturbance or violence must be reasonably likely, and not merely a remote possibility.\”); cf.Ash v. Peoples Bank of Greensboro, 500 So.2d 5, 6-7 (Ala.1986)(no breach of peace when vehicle repossessed from public street while debtor inside house). In addition, \”[b]reach of the peace… refers to conduct at or near and/or incident to seizure of property.\” Jordan v. Citizens & S. Nat\’l Bank of South Carolina, 278 S.C. 449, 298 S.E.2d 213, 214 (1982); see alsoCensus Fed. Credit Union v. Wann, 403 N.E.2d 348, 351-52 (Ind.Ct. App.1980) (\”[E]ven in attempted repossession of a chattel off a street, parking lot or unenclosed space, if repossession is verbally or otherwise contested at actual time of and in immediate vicinity of attempted repossession by defaulting party or other person in control of chattel, secured party must desist and pursue his remedy in court.\”).

Lenders and repossession companies are responsible for damages to property and people for these violations.  Please contact our office for help if this has happened to you or your family.