Rocky Mountain Export Co. v. Colquitt

The plaintiff sold and delivered a portable drilling rig to defendant and in payment received a promissory note secured by a chattel mortgage on the rig.

Eventually plaintiff took possession of the drilling rig; transported it to Denver, Colorado; sold it; applied the proceeds to the payment of the promissory note, after deducting expenses for transportation, upkeep and sale; and brought this action to recover the unpaid balance due under the note.

Plaintiff’s complaint alleged a cause of action for recovery on the promissory note but made no mention of the chattel mortgage. Defendant’s answer…