C.I.T. Corp. v. Anwright Corp.

When a creditor fails to give accurate notice of the place of sale of repossessed collateral as required by California Uniform Commercial Code section 9504, subdivision (3), may the creditor resort to the doctrine of substantial compliance so as to preserve the right to a deficiency judgment? When a guarantor waives the right to notice of the sale, prior to the default of the debtor, is the waiver effective? We answer these questions, “no” and affirm the summary judgment from which C.I.T. Corporation (C.I.T.) appeals.

Appellant C.I.T. lent money to respondents Anwright Corporation and Fastener Specialities Company (debtors). Respondent Lloyd G. Anderson was at all times actively involved in the operation of debtors and was required to guarantee the loans. The guarantees contained waivers of many rights, including waiver of the right to require C.I.T. to proceed against the debtor before resorting to the guarantee and waiver of the right of notice to Anderson before any sale of the collateral which secured the loans. The loans went into default, and C.I.T. repossessed the secured collateral and gave notice of sale. The notice stated that the sale would take place on…