Tilly v. John Doe

Revelle, J. *

In March 1980, appellant Earl Tilly sold the assets of his farm equipment dealership, Tilly Equipment, Inc., to Jim Scammahorn and Bob Richards. The purchasers paid $100,000 in cash and notes at the time of closing, agreed to pay the balance of $239,154 in monthly installments, and assumed approximately $129,000 in liabilities. The purchaser's obligations were to be secured by the assets of the business.

Respondent John Doe, Tilly's attorney, drew up the papers for the transaction but failed to obtain and perfect a valid security interest. The court below granted Tilly's motion…