Sheppard Federal Credit Union v. Palmer
United States Court of Appeals for the Fifth Circuit
408 F.2d 1369 (1969)
Relevant factsFree
After Palmer (plaintiff) resigned from a two-year Air Force nursing tour and mentioned moving to Dallas, Sheppard (defendant) invoked its loan's acceleration clause and repossessed his car despite his consistently timely payments; the jury, instructed that Sheppard bore the burden of proving its own good faith, awarded Palmer damages for malicious conduct.
IssueFree
Whether, under the Uniform Commercial Code, if a creditor activates an acceleration clause, the debtor has the burden of proving the creditor did not act in good faith.