Chase Agri-Credit v. Jack Spears Drilling, et al

*Pursuant to 5TH CIR. R. 47.5, the Court has determined that this
opinion should not be published and is not precedent except under
the limited circumstances set forth in 5TH CIR. R. 47.5.4.
United States Court of Appeals
Fifth Circuit
F I L E D
July 21, 2004
Charles R. Fulbruge III
Clerk
UNITED STATES COURT OF APPEALS
For the Fifth Circuit
No. 04-10041
Summary Calendar
CHASE AGRI-CREDIT SYSTEM, INC.,
Plaintiff-Appellee,
VERSUS
JACK SPEARS DRILLING COMPANY, INC; JACK SPEARS; MAGGIE SPEARS,
Defendants-Appellants.
Appeal from the United States District Court
For the Northern District of Texas, Lubbock
USDC No. 02-CV-252
( )
Before SMITH, DeMOSS, and STEWART, Circuit Judges.
PER CURIAM:*
Chase Agri-Credit System, Inc. (hereinafter “Chase”) is a
Kansas corporation engaged in the business of financing and/or
purchasing accounts receivable generated by other businesses,
primarily farm implement companies. On September 4, 1996, Chase
entered into a written agreement with Jack Spears Drilling Company,

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Inc. (hereinafter “JSDC”) whereby Chase agreed to purchase or take
assignment of various accounts of customers of JSDC on an ongoing
basis at a discount of two percent. The agreement further
obligated JSDC to repurchase from Chase one hundred percent of any
accounts that they determined “for any reason” to be uncollectible.
The agreement was signed by the president of Chase and by Jack
Spears in his capacity as president of JSDC. The agreement was
also signed by Jack and Maggie Spears as the principal owners of
JSDC in their individual capacities as guarantors. On various
dates ranging from March, 2001 to July, 2002, Chase charged back to
JSDC various delinquent accounts and made demand on JSDC and the
Spears to buy back such delinquent accounts. On October 18, 2002,
Chase filed suit in the United States District Court for the
Northern District of Texas, Lubbock Division against JSDC and Jack
Spears and Maggie Spears for breach of their contract agreements as
to the delinquent accounts. JSDC and the Spears filed a timely
answer asserting various defenses. On July 15, 2003, Chase moved
the district court for summary judgment on the grounds that JSDC
and the Spears had failed to produce any evidence to show that
there was a genuine issue of fact as to any of their defenses. On
December 3, 2003, the district court entered a twenty-five page
memorandum and order granting Chase’s motion for summary judgment
and entered a final judgment on February 10, 2004, in favor of
Chase. JSDC and the Spears timely appealed to this Court. We have
carefully reviewed, the record excerpts and relevant portions of

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the record itself. For the reasons stated by the district court in
its memorandum and order filed on December 3, 2003, we affirm the
final judgment filed in this cause on February 10, 2004. AFFIRMED.

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