Creditor Can Be Sued for Auto Repossessor's `Breach of Peace' Although He was a Contractor

    The Georgia Court of Appeals, in Fulton v. Anchor Savings Bank, ruled that a bank could be sued for an auto repossessor's "breach of peace" even though the repossessor was an independent contractor who worked for a company hired by the bank.  Although there is apparently no Virginia case on point, several state courts have so ruled.

The Georgia Court of Appeals, in the case of General Finance Corp. v. Smith, relied upon a legal principal from the Restatement (Second) of Torts.  §424 of the Restatement holds that a principal cannot delegate to a contractor "the manner of performance of duties imposed by the contract, ordinance or statute".  In Georgia, the state statute prohibited intimidation during a self-help repossession.

The problem with this ruling for creditors is obvious: creditors must be very careful in who they choose to do their work - at least until Virginia adopts a different ruling.