Trauernicht v. Kingston

Action to cancel a note as usurious and to compel tbe surrender of security pledged as collateral. There were findings for tbe plaintiffs. Tbe defendant appeals from tbe order denying bis motion for a new trial.

When a transaction takes tbe form of a sale of property, in this case corporate stock, having a market price at which it may be sold on any business day, and tbe sale price is in excess of market value, for which sale price a note is given, tbe purpose being to cover usury, tbe apparent vendor being a lender in disguise and tbe buyer a borrower, tbe intent being that tbe vendor shall…