Leonhard v. Flood
Supreme Court of Arkansas
Appeal from Arkansas Chancery Court. Jas. F. Robinson, Chancellor. STATEMENT BY THE COURT. Henry Flood and his wife, Catherine Flood, borrowed $2,000 from John Leonhard, To secure the payment of this loan, Edwin Pettit and J. F. Swanson signed and indorsed the note given by the Floods to Leonhard.
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Appeal from Arkansas Chancery Court. Jas. F. Robinson, Chancellor. STATEMENT BY THE COURT. Henry Flood and his wife, Catherine Flood, borrowed $2,000 from John Leonhard, To secure the payment of this loan, Edwin Pettit and J. F. Swanson signed and indorsed the note given by the Floods to Leonhard. In order to further secure the payment of the note, and to protect their sureties, the Floods executed and delivered toLeonhard a mortgage upon certain real estate owned by Mrs. Flood. This loan was obtained by the Floods for the purpose of equipping and operating a brick plant. The Floods…
1Opinion of the Court
Riddick, J.,
(after stating the facts.) We are of the opinion that the defense of usury has not been established by the evidence. Our law visits on a lender who contracts for usurious interest,'however small, a forfeiture of his entire loan and the interest thereon. It follows from the plainest principles of justice that such a defensa should be clearly shown before the forfeiture is declared. For this reason, usury will not be inferred where, from the circumstances, the opposite conclusion can be reasonably and fairly reached. Berdan v. Trustees, 47 N. J. Eq. 8, 21 Atl. 40; Webb, Usury, p.…
2Cases cited5 opinions
- Lipscomb v. McClellanSupreme Court of Alabama · 1882
- Penn v. GarvinSupreme Court of Arkansas · 1892
- Challis v. German National BankSupreme Court of Arkansas · 1892
- Valley Distilling Co. v. AtkinsSupreme Court of Arkansas · 1887
- Foster v. HaglinSupreme Court of Arkansas · 1897
3Cited by33 opinions
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- Eldred v. HartSupreme Court of Arkansas · 1908
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- Citizens' Bank v. MurphySupreme Court of Arkansas · 1907
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