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Sirius LC v. Erickson

156 P.3d 539 (2007)

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Sirius LC v. Erickson

Idaho Supreme Court

156 P.3d 539 (2007)

Facts

Sirius, LC (Sirius) (plaintiff) was a company owned by attorney William Bagley. Bryce Erickson (defendant) hired Bagley as counsel for a Chapter 11 bankruptcy proceeding. The bankruptcy court dismissed the proceeding. Erickson then engaged Bagley’s services for a second bankruptcy proceeding. Before agreeing, Bagley requested that Erickson sign a promissory note, payable to Sirius, for $29,173.38. This amount represented Erickson’s unpaid legal fees from the previous bankruptcy case. The promissory note was to be secured by a mortgage on Erickson’s property. Thereafter, Erickson executed the note, which provided that “for value received, the undersigned Bryce H. Erickson promises to pay to Sirius LC [the specified amount] . . . due and payable on June 1, 2001.” Erickson failed to pay the note by the due date. Sirius filed suit against Erickson, seeking to foreclose on the mortgage on Erickson’s property in order to recover payment on the note. Erickson moved for summary judgment, claiming that the note was unenforceable due to a lack of consideration. The district court denied Erickson’s motion and instead granted summary judgment for Sirius, concluding that there was sufficient consideration for the note under both Article 3 of the Uniform Commercial Code (UCC) and the common law. Erickson appealed.

Rule of Law

Issue

Holding and Reasoning (Jones. J.)

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