Federal Court: Police Intervention Can Create A Breach Of Peace
A recent federal court ruling out of Michigan should get the attention of every repossession professional: when police become involved in a contested self-help repossession, the recovery may have reached the point where the agent must walk away.
In Hart v. North Star Recovery, LLC, the repossession agent arrived to recover a vehicle from the plaintiff’s driveway. The vehicle owner objected, physically positioned himself between the tow truck and the vehicle, and ultimately called police.
When officers arrived, they determined the repo agent had the proper paperwork and instructed Hart to allow the vehicle to be taken. The agent then completed the repossession.
The federal court ruled that was a breach of the peace.
The court emphasized that police should not act as a “curbside courtroom” to resolve a dispute between a repossessor and the person in possession of the vehicle. Once the officer intervened and effectively compelled Hart to surrender the vehicle, the agent no longer had the right to continue the self-help repossession.
The court’s reasoning goes even further: the fact that the debtor created the confrontation does not necessarily protect the repossessor. The agent has the option—and responsibility—to disengage.
As the court explained, the repossessor can avoid violating the statute by leaving after the debtor creates the confrontation. Continuing the recovery after the breach has occurred is what exposes the agent to liability.
If a recovery has escalated to the point where law enforcement must intervene, the self-help process may already be over. An officer’s decision that the repo agent has paperwork does not necessarily restore the agent’s right to take the vehicle.
The court granted Hart summary judgment on liability under the FDCPA, Michigan’s repossession statute, and conversion claims. Damages remain to be determined.
