Moe v. John Deere Co.
South Dakota Supreme Court
516 N.W.2d 332 (1994)
Ted Moe (plaintiff) bought a tractor on an installment contract that was later assigned to John Deere Company (defendant). Moe missed his first two installment deadlines, and Deere both times accepted the late payments or extended the deadline without objection, including once telling Moe by phone to pay $2,000 and the rest after harvest without ever specifying a due date for that $2,000. Without any further notice that strict compliance would now be enforced, Deere repossessed Moe's tractor, and Moe sued for wrongful and fraudulent repossession; the trial court granted Deere summary judgment, and Moe appealed.
Whether a creditor's repeated acceptance of late payments, when the creditor holds a contractual right to repossess property upon default, creates a duty to notify the debtor that strict compliance with the contract will be required before the creditor may lawfully repossess.