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McCollum v. Clothier
Utah Supreme Court
241 P.2d 468 (1952)
Clothier (defendant) held the mortgage of various property owned by a company that went into bankruptcy. Clothier foreclosed on the mortgage. McCollum (plaintiff) assisted the trustee in bankruptcy, helping to sell some of the property during the bankruptcy process. Clothier, through his attorney, Iverson, solicited assistance from McCollum in dealing with the property and lining up prospective buyers for the forthcoming sale of equipment because McCollum performed his duties for the trustee well and enlisting his services given his familiarity with the property was logical. McCollum obliged and performed a significant amount of work to Clothier’s benefit related to the sale of various property. Clothier knew McCollum had been working to his benefit as he had talked directly to McCollum. After the sale, Clothier denied payment to McCollum for services rendered in relation to the sale. McCollum brought a lawsuit for breach of implied contract and recovery under the principle of quantum meruit. The lower court entered judgment for McCollum. Clothier appealed to the Utah Supreme Court.
Rule of Law
Holding and Reasoning (Crockett, J.)
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