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Contracts Keyed to Dawson
Ford Motor Credit Co. v. Morgan
Facts
The Morgans had financial difficulties, and fell behind in their payments. They also had major mechanical difficulties with the car. They eventually put the car in a garage, removed the plates, and discontinued insurance. Ford Credit’s form contained a notice that the holder was subject to “all claims and defenses which the debtor could assert against the seller” of the car. Ford sought recovery of $2,628.87 owed under the installment contract, plus attorneys fees. The Morgans counterclaimed that Ford Credit stood fully in the shoes of the dealer as an assignee of the contract, and sought damages under three counts. The judge entered judgment for the Morgans on Ford Credit’s complaint, and judgment for Ford Credit on each of the counterclaims.
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