Tonkon Torp attorney Lauren Bernton spoke at the Oregon Association of Defense Counsel (OADC) Annual Convention on June 19. Her talk focused on Article 9 sales and the commercially reasonable standard in the time of COVID-19.
Lauren discussed the general framework for sales under the Uniform Commercial Code (UCC) 9-610, and provided a number of examples of how secured creditors can ensure that disposition of collateral is commercially reasonable during the pandemic. Examples include allowing for COVID-19 protocols for in-person sales, advertising appropriately for the location of the sale (whether it is in-person or remote over Zoom), and what to keep in mind for timing collateral disposition. Lauren touched on how courts scrutinize sale prices, and outlined special considerations for the impact of COVID-19 on particular industries. As she concluded her talk, Lauren stressed that the purpose of the standard is to maximize the proceeds of sale, and a secured creditor should make decisions regarding a sale under COVID-19 conditions with that goal in mind.
Lauren is an associate in Tonkon Torp’s Litigation Department. She works with multinational companies, regional companies, and local businesses as an advocate to help them achieve their goals through trial and dispute resolution strategies. She represents businesses in state and federal courts, as well as in administrative settings including private mediation and judicial settlement conferences.