Associates Commercial Corporation v. Rash
United States Supreme Court
520 U.S. 953 (1997)
In the state of Texas in 1989, Elray Rash (Rash) (defendant) purchased a tractor truck for $73,700 for use in his business. He made a down payment to the seller and agreed to pay off the purchase price over 60 months. The loan and a lien on the truck as collateral were assigned to Associates Commercial Corporation (ACC) (plaintiff). In 1992, Rash submitted a bankruptcy petition and repayment plan under Chapter 13 of the Bankruptcy Code, at which point he owed $41,171 to ACC. Under the proposed plan, Rash sought to retain the truck and to pay ACC, over the life of the plan, the truck’s present value, which Rash alleged to be $28,500. ACC objected. It requested that it be given repossession of the truck and asserted that its claim was secured to the amount of $41,171. At a hearing on the truck’s value, Rash proposed that the value be determined by the amount ACC would receive upon foreclosure and sale. ACC proposed that the value be determined by the amount Rash would be obligated to pay for a like vehicle. The bankruptcy court ruled in favor of Rash and approved the plan. The district court affirmed. Upon appeal, a panel of the Court of Appeals for the Fifth Circuit reversed, but on rehearing en banc, the Fifth Circuit affirmed the district court. ACC petitioned the United States Supreme Court.
Rule of Law
Holding and Reasoning (Ginsburg, J.)
Dissent (Stevens, J.)
What to do next…
Unlock this case brief with a free (no-commitment) trial membership of Quimbee.
You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 97,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read our student testimonials.
Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.
Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students. Read more about Quimbee.
Here's why 174,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 14,000 briefs, keyed to 188 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.