Summary:
When a repossession turns into a shouting match—or worse, when the debtor is still inside the car—any lawyer who’s ever seen the phrase “without breach of the peace” in N.C. Gen. Stat. § 25-9-609 should immediately start thinking “state-court claim and delivery,” not “self-help.”
In Atkinson v. Coats II, No. 1:22-cv-369 (M.D.N.C. Sept. 23 2025), Judge Osteen followed the Fourth Circuit’s earlier decision in Atkinson v. Godfrey, 100 F.4th 498 (4th Cir. 2024), and dismissed the remaining claims against the Harnett County Sheriff, finding no Monell liability for the deputy’s role in a contentious repossession. The tow operator had called the sheriff’s office for “assistance” after lifting the debtor’s vehicle—with her still inside—off the ground. A deputy arrived, ordered her out, and the repo was completed. The debtor alleged that the sheriff’s office had a policy of aiding creditors in self-help repossessions.
No Clear Constitutional Violation, No Policy Liability
The Fourth Circuit had already held that the deputy was entitled to qualified immunity because neither North Carolina nor federal precedent clearly established that his conduct—ordering the debtor from the car—was unconstitutional. Judge Osteen reasoned that if the constitutional “terrain was murky,” there could be no notice to the Sheriff sufficient to support municipal liability. The plaintiff’s claims that Harnett County had a “policy” of helping repossessors were conclusory, based only on this single incident and “information and belief.” Without multiple examples or evidence of an official directive, there was no “express policy,” “custom,” or “deliberate indifference” sufficient to meet Monell’s standards.
Why This Matters for Consumer Counsel
While Atkinson II ultimately shields the sheriff’s office from federal § 1983 liability, it leaves open a key state-law issue: repossession “without breach of the peace.” Under U.C.C. § 9-609 and North Carolina’s enactment, self-help repossession is permissible only so long as it does not breach the peace. That standard is a factual, state-law inquiry—and when an officer’s presence or command compels a debtor’s compliance, the line from “peacekeeping” to “state-sanctioned seizure” may be crossed.
Consumer debtor attorneys should therefore remind creditor counsel—particularly those representing buy-here-pay-here dealers and third-party repossessors—that bankruptcy “surrender” does not itself authorize self-help repossession. If the debtor refuses access or remains in possession, the creditor’s lawful course is a claim-and-delivery action under N.C. Gen. Stat. § 1-472 et seq., not a midnight tow backed by a deputy’s badge. Attempting repossession in those circumstances risks both tort and UDTPA exposure, as well as possible contempt in bankruptcy court if the vehicle remains property of the estate.
Practice Pointer
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Advise creditors: even post-bankruptcy, obtain judicial process before repossessing over objection.
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Advise debtors: document any law-enforcement involvement, as the presence of an officer often transforms a private dispute into state action.
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Advise law enforcement: “civil standby” should never become “civil participation.”
In short, Atkinson v. Coats II narrows federal liability but reminds everyone else—especially those holding tow straps and titles—that repossession power ends where the peace begins.
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