Goodwin Bros. Leasing, Inc. v. H & B INC.

OPINION

HARBISON, Justice.

Appellant, a Kentucky corporation, filed this action to collect a balance claimed under a contract dated August 27, 1974, between it and H & B Incorporated, a Tennessee corporation. Also joined as defendants were six individuals who had personally guaranteed the obligations of the corporate debtor under the contract. Both the Chancellor and the Court of Appeals held that the transaction, although in form a sale and leaseback of equipment, was in essence a secured loan made by appellant to H & B at a usurious rate of interest. Appellant was allowed recovery of the…