Tom Growney Equipment, Inc., v. Ansley

888 P.2d 992 (1994)

Facts

D sold a backhoe on credit to Edwards in 1988. D retained a security interest but neglected to record it. In November 1991, Edwards took the backhoe to P for repairs. Edwards had an open account with P. The repairs were performed, and P released the backhoe to Edwards in exchange for a promissory note. P believed that Edwards owned the backhoe free of any creditor's security interest and was unaware of the obligation to D. D was unaware of the services provided by P, or that P was owed any money by Edwards. Edwards defaulted on both obligations. D repossessed the backhoe from Edwards. P brought suit against both Edwards and D for the balance owed on the promissory note. The district court entered summary judgment against D on P's claim for quantum meruit in the amount of $7,002.53. D appealed.