Nissan Motor Acceptance Corporation v. Baker
United States District Court for the Northern District of Texas
239 B.R. 484 (1999)
Nissan (defendant) repossessed Baker's (plaintiff's) truck without knowing he had filed for Chapter 7 bankruptcy; after receiving notice of the bankruptcy, Nissan kept possession, sought relief from the automatic stay or adequate protection, and then sold the truck before the court ruled, later obtaining a relief order without disclosing the sale had occurred. Baker sued Nissan for violating the automatic stay, and the bankruptcy court ruled for Baker and awarded damages; Nissan appealed.
Whether a secured creditor is required to return collateral property of a bankruptcy estate taken in violation of the automatic stay, regardless of whether the creditor has received adequate protection.