Ernest S. Mitzner v. William C. Baylies and Sofrona F. Baylies

McGOWAN, Circuit Judge:

Appellee sued in the District Court to recover a deficiency in the amount realized by him on the foreclosure of a second deed of trust securing appellants’ note. Judgment was entered for appellee on a jury award of $12,567.11. At the close of appellee’s case, appellants moved for a directed verdict on the grounds that (1) appellee’s own showing revealed the transaction to be a usurious loan, as distinct from a bona fide purchase of a note, and (2) the transaction was void because it occurred in a course of dealing by ap-pellee as an unlicensed money lender. The motion…