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Alpacas of America, LLC v. Groome

317 P.3d 1103 (2014)

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Alpacas of America, LLC v. Groome

Washington Court of Appeals
317 P.3d 1103 (2014)

Facts

Twice, Sam and Odalis Groome (defendants) purchased an alpaca from Alpacas of America, LLC (AOA) (plaintiff). For each purchase, the parties created a sale contract and a promissory note. Each note stated: (1) a specific amount was owed, (2) the note was “pursuant to” the sale contract, and (3) the note was secured by the alpaca listed in the sale contract. The second note also referred to the sale contract for instructions about giving notice. In October 2007, the Groomes stopped paying on the promissory notes. In April 2012, AOA sued the Groomes to enforce the notes. The Groomes moved to dismiss, arguing the claims were time-barred by the four-year statute of limitations governing contract claims. AOA argued that the six-year statute of limitations for negotiable-instrument claims applied because the promissory notes were negotiable instruments. The trial court found that the notes were not negotiable instruments because they were part of the same transaction as the sale contracts and some information about the notes’ terms could be found only in the sale contracts. Applying the four-year statute of limitations for contract actions, the trial court granted the motion to dismiss. AOA appealed.

Rule of Law

Issue

Holding and Reasoning (Johanson, J.)

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