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Secured Transactions Keyed to Whaley
Reeves v. Foutz & Tanner, Inc.
Citation:
617 P.2d 149 (1980)Facts
Plaintiffs Lydia Reeves and Grace Begay were uneducated Navajo Indians with limited understanding of English and commercial transactions. Each plaintiff pawned Indian jewelry with defendant Foutz and Tanner, Inc., receiving money loans in exchange for promises to repay within thirty days with interest. The jewelry left as collateral was worth several times the amount borrowed. Both plaintiffs defaulted on their loans. Defendant sent each plaintiff a notice of intent to retain the collateral pursuant to UCC Section 9-505, though Reeves claimed she never received notice. Neither plaintiff objected to the retention within the thirty-day period. Defendant then moved the jewelry into its sale inventory and sold it in the regular course of business to Joe Tanner, the president of defendant corporation, or to Joe Tanner, Inc., a related corporation engaged in selling Indian jewelry. Defendant did not account to plaintiffs for any surplus from these sales.
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