Premier Farm Credit, PCA, Plaintiffs-Appellees and Cross-Appellants, v. W-Cattle, LLC; Ronny D. Wisdom; and Lenee Y. Wisdom, Defendants-Appellants and Cross-Appellees., 155 P.3d 504

Summary

The debtors operated a cattle ranch and executed a promissory note secured by personal property collateral. The debtors later executed deeds of trust on their real estate when the lender became concerned about inaccuracies in the collateral's actual value. The lender initiated a foreclosure action and a claim for breach of the note. The debtors filed counterclaims and a third-party claim based on their assertion that they would not have signed the deeds of trust but for the promise by the lender's president to forbear foreclosure. On appeal, the court held that the debtors' counterclaims and third-party claim based on the president's verbal promise to forbear foreclosure were barred by the credit agreement statute of frauds, Colo. Rev. Stat. § 38-10-124(2) because § 38-10-124(2) applied to claims relating to credit agreements, and the lender was a "creditor" within the meaning of § 38-10-124(d)(1). Also the trial court did not violate the debtors' restructuring rights under 12 U.S.C.S....