Hilliman v. Cobado
Supreme Court of New York
499 N.Y.S.2d 610 (1986)
Hilliman and Szata (plaintiffs) bought cattle from Cobado (defendant) under chattel mortgages that gave Cobado the contractual right to "enter debtor's premises peaceably" to repossess the cattle upon default, consistent with the UCC. Despite the plaintiffs never actually defaulting on any payments, Cobado arrived unannounced at Szata's property with two deputy sheriffs, was told there was no default and asked to leave, responded "to hell with this we're taking the cows," and then forcibly herded the cattle onto trucks over the Szatas' objections while threatening Szata with arrest if he interfered; a lieutenant who arrived mid-repossession threatened to arrest Cobado, who took the cattle anyway and was himself arrested. The plaintiffs sued Cobado to recover the repossessed cattle.
Whether a secured party may reserve the contractual right to enter a debtor's property to repossess collateral in the event of default.