Philanthropic Building Ass'n v. McKnight
Supreme Court of Pennsylvania
Error, to tbe District Court of Philadelphia. This was an action of assumpsit by William McKnight against The Philanthropic Savings, Loan and Building Association, to recover back a sum of money paid to the defendants on an usurious contract. On the 23d June 1854, the plaintiff, who was the holder of five shares of stock in The Philanthropic Savings, Loan and Building Association, was the successful bidder for a loan of $1000 at a premium of 28 per cent..
Read the full summary
Error, to tbe District Court of Philadelphia. This was an action of assumpsit by William McKnight against The Philanthropic Savings, Loan and Building Association, to recover back a sum of money paid to the defendants on an usurious contract. On the 23d June 1854, the plaintiff, who was the holder of five shares of stock in The Philanthropic Savings, Loan and Building Association, was the successful bidder for a loan of $1000 at a premium of 28 per cent.. He accordingly received from the defendants the sum of $720, executed to them a bond and mortgage in the sum of $1800, and transferred his…
1Opinion of the Court
The opinion of the Court was delivered by
Strong, J.
That the payment of usurious interest is not a voluntary payment in any such sense as to entitle the receiver to •retain the sum paid above legal interest, is too well settled to admit of doubt. The money is paid under the constraint of a •formal though illegal contract. That contract itself was obtained by oppression, by taking advantage of the necessities of the bornower, and, of consequence, so was the usurious interest paid under it. The early disposition of the English courts was to deny .the right of a party paying such interest to…
2Cases cited2 opinions
- Thomas v. ShoemakerSupreme Court of Pennsylvania · 1843
- Briggs v. ThompsonNew York Supreme Court · 1822
3Cited by3 opinions
- Douglas v. KlopperCalifornia Court of Appeal · 1930
- Carey v. Discount Corp.Hawaii Supreme Court · 1942
- State v. Tuscaloosa Building & Loan Ass'nSupreme Court of Alabama · 1935