Peoples Finance & Thrift Co. of Salt Lake City v. Blomquist

CROCKETT, Justice:

Plaintiff, an industrial loan corporation, sued defendant for $1,245 balance due on a promissory note; to foreclose a chattel mortgage on defendant’s automobile; and for attorney’s fees as a necessary expense of collection as provided in the note. After suit was filed defendant tendered full payment with interest and costs but refused to pay attorney’s fees.

The parties entered into an agreement whereby the plaintiff took the money tendered and released defendant’s car, hut reserved for determination this issue: whether the covenant to pay the costs of collection in case of…