Gregory v. Porterfield

OPINION.

OGG, Judge.

This appeal questions whether a debtor who has paid the debt can enforce contribution against his co-debtor where the statute of limitations has run on the judgment obtained by the original creditor.

The appellants/plaintiffs and appel-lees/defendants were stockholders in an Arizona corporation known as Penguin Motor Hotels, Inc. Both plaintiffs and defendants were among a group of thirteen guarantors for loans that were made to the corporation by a bank in Arizona and a bank in New Mexico. When the loan obligations became due the corporation defaulted and the banks made…