Morrison Cohen Secures Stay of UCC Article 9 Aircraft Disposition in Florida
Morrison Cohen, on behalf of Crown Air, LLC, successfully obtained both an emergency stay and then a further stay after hearing of a scheduled UCC Article 9 disposition of an aircraft, granted pursuant to orders of the Circuit Court of the Eighth Judicial District Circuit in and for Alachua Country, Civil Division in Gainesville, Florida.
The aircraft owned by Crown Air is the subject of a judicial foreclosure action before the Court in Florida. Crown Air and related defendants are also defending a lawsuit in U.S. District Court in California brought by the secured lender for alleged breach of a loan and guarantees related to the aircraft in question, in which the lender is also seeking possession of the aircraft and the appointment of a receiver. Notwithstanding the above, the secured lender sought to effectuate a UCC Article 9 disposition of the aircraft in Tampa, Florida.
On short notice, Morrison Cohen, along with attorneys from Gunster, moved on behalf of Crown Air for an emergency stay of the scheduled disposition of the aircraft, arguing that permitting it to proceed was improper because, among other reasons, the predicate default was the subject of litigation, the secured lender had otherwise elected its remedy, the notice of disposition of collateral was defective on its face and the proposed terms were not commercially reasonable.
On August 27, 2025, the Florida court issued an emergency stay of the UCC Article 9 disposition of the aircraft pending a further hearing. At the conclusion of the hearing on September 9, 2025, the Court continued the stay and issued a further order to that effect on October 3, 2025.
This decision affirms the power of a court to halt a UCC Article 9 disposition of secured collateral where a secured lender has elected its remedies and/or the sale is not properly noticed or commercially reasonable.
Morrison Cohen Chair and Co-Managing Partner Y. David Scharf, Partner Jay R. Speyer and Counsel Joaquin Ezcurra led the representation of Crown Air, LLC.
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