In Labadie v. NU Era Towing & Service, Inc., the Second Circuit affirmed the district court’s dismissal of a Fair Debt Collection Practices Act (FDCPA) claim arising from the nonjudicial repossession of a vehicle. The plaintiff alleged that NU Era’s agent “breached the peace” during the repossession in violation of 15 U.S.C. § 1692f(6). On appeal, Matt successfully argued that the complaint did not plausibly allege conduct amounting to a breach of the peace under New York law, an essential element required to strip a secured party of its present right to repossess collateral.

The Court agreed. Applying the New York Uniform Commercial Code and longstanding New York precedent defining “breach of the peace,” the Second Circuit held that verbal objections, without more, do not create a plausible claim. The panel emphasized that New York courts require conduct involving violence, threats likely to incite violence, or actions disturbing public order. Here, the plaintiff alleged verbal objections, a blocked vehicle in a parking lot, and a statement that police might be contacted if she deviated from an agreed-upon driving route. Critically, no police were ever called, no confrontation occurred, and no allegations suggested a likelihood of violence or disturbance of public tranquility.

The Court also rejected the plaintiff’s argument that these facts, taken together, constituted a breach of the peace under New York U.C.C. § 9-609. Because the complaint did not allege any conduct meeting New York’s strict breach-of-the-peace standard, the Second Circuit concluded that the repossession was lawful as pleaded and affirmed dismissal under Rule 12(b)(6).

This appellate win reinforces a critical defense principle for lenders, repossession companies, insurers, and claims professionals: a debtor’s verbal objections or discomfort alone do not constitute a breach of the peace under New York law, and the FDCPA does not impose liability absent well-pleaded allegations of violence, threatened violence, or public disturbance. This decision provides valuable clarity for assessing repossession-related claims and potential FDCPA exposure.

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