The second and third questions then relate to the contents of the presale and postsale notices that must be sent to the debtors. The court first asks whether the 3 fair market value of the collateral under § 20B is the fair market retail value of the collateral. Unsure of the meaning of the statute, the United States Court of Appeals for the First Circuit certified to this court three questions related to the calculation of "fair market value" under § 20B, and the notices that are required with respect to this calculation. The United States District Court for the District of Massachusetts granted summary judgment to Honda, and the plaintiff appealed. Williams then sued Honda, alleging that the fair market value of her repossessed automobile was the fair market retail value of the automobile and Honda's notices to her were insufficient under Massachusetts law because of the manner in which Honda described and calculated her deficiency. Honda then used that amount to establish the fair market value of the repossessed automobile and likewise referenced the auction sale amount in presale and postsale notices to the debtor. The price for the repossessed vehicle was determined at an auction open to licensed dealers. The plaintiff in this case, Rachel Williams, defaulted on her automobile loan, causing the defendant, American Honda Finance Corporation (Honda), to repossess and sell the vehicle that served as collateral for the loan. Under § 20B, a creditor who repossesses and sells a vehicle is entitled to recover from the debtor the deficiency, if any, that remains after deducting the "fair market value" of the vehicle from the debtor's unpaid balance. The primary issue presented in this case is how to establish the fair market value of a repossessed automobile Individually and on behalf of all others similarly situated. Rossman, for National Consumer Law Center, amicus curiae, submitted a brief. Abugheida, for American Financial Services Association, amicus curiae, submitted a brief. Mattson, of Illinois (Tracy McDevitt Waugh also present) for the defendant. Words, "Fair market value." Certification of questions of law to the Supreme Judicial Court by the United States Court of Appeals for the First Circuit. Motor Vehicle Instalment Sales, Repossession, Notice. Gants, C.J., Gaziano, Lowy, Cypher, & Kafker, JJ. If you find a typographical error or other formal error, please notify the Reporter of Decisions, Supreme Judicial Court, John Adams Courthouse, 1 Pemberton Square, Suite 2500, Boston, MA, 02108-1750 (617) 5571030 SJC-12367 RACHEL C. NOTICE: All slip opinions and orders are subject to formal revision and are superseded by the advance sheets and bound volumes of the Official Reports. The Court answered (1) the ultimate determination of fair market value is left to the courts in contested cases, taking into account both creditor and debtor interests, and the means, methods, and markets used to sell the vehicle and (2) the resale and postsale notices provided to the debtor must expressly describe the deficiency as the difference between the amount owed on the loan and the fair market value of the vehicle. The court of appeals certified to the Supreme Judicial Court three questions. The federal district court granted summary judgment to American Honda Finance Corporation (Honda). Plaintiff in this case alleged that the fair market value of her repossessed automobile was the fair market retail value of the automobile, rather than the amount paid at an auction open to licensed dealers. Under section 20B, a creditor who repossesses and sells a vehicle is entitled to recover form the debt the deficiency that remains after deducting the “fair market value” of the vehicle from the debtor’s unpaid balance. 255B, 20 B and the notices that are required with respect to this calculation. At issue was how to calculate “fair market value” of a repossessed automobile under Mass.
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