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Contracts Keyed to Kuney
Tom Growney Equipment v. Ansley
Citation:119 N.M. 110, 888 P.2d 992 (1994).
In 1988, Owner sold a backhoe on credit to Edwards. In November 1991, Edwards took the backhoe to Repairer for repairs. Edwards had an open account at Repairer. After completion of the repairs, Repairer released the backhoe to Edwards in exchange for a promissory note. Repairer was unaware that Edwards did not own the backhoe free of any other creditor’s lien. Owner, similarly, was not aware of the repairs or that Edwards owed the Repairer for any services. Edwards defaulted on both debts and, in March 1992, Owner repossessed the backhoe.
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