Alaska Statebank v. Fairco

In this case Fairco, the debtor, filed suit against Alaska Statebank (Statebank), the secured creditor, for damages allegedly sustained when Statebank proceeded against the collateral which secured Faircos delinquent obligation to the bank. Fairco claimed that the course of negotiations between the parties had altered Statebanks rights under Alaskas version of the Uniform Commercial Code (UCC) and the written security agreement, precluding the bank from proceeding against the collateral without giving prior notice to Fairco. Statebank disputed Faircos characterization of the effect of the negotiation process, relying upon the terms of the security agreement and the provisions of the Alaska UCC. After a non-jury trial the superior court ruled in favor of Fairco and this appeal followed.