Legal Question in Business Law in New York

Re: Failure to release a ucc

Does he have a case? Everybody has a case. But will he be successful? That's the real question.

This is actually a fairly common problem. If you had refused to release the UCC (by error) they might have a better claim. However, if they just sat back, failed to communicate with you, failed to demand a release, and simply allowed their alleged damages to accrue they will likely be "guilty" of failing to mitigate their damages.

Read the security agreement very carefully with an attorney as well as UCC update service bulletins. Reach me at [email protected] to discuss further.

Re: Failure to release a ucc

He may have a claim if he demonstrates and can prove actual damages, and you in fact did not file the UCC-3 timely. Feel free to contact me directly if I can be of assistance

Re: Failure to release a ucc

Maybe. You first have to look to the language in the Security Agreement. The customer may have failed to comply with the notice provision. You may also have a limitation of liability clause in the agreement - for example, cannot receive consequential damages from breach.

Assuming that you contractually breached the agreement, the customer still has to prove damages.

Any additional questions feel free to telephone.

Mike.