Eagleson v. Shotwell
New York Court of Chancery
, WILLIAM EAGLESON, deceased, the husband of the plaintiff, in June, 1812, being in want of money, applied to the defendant, who agreed to lend him 2,000 dollars, on bond and mortgage, provided he would take, also, four shares of the stock of the Commercial Insurance Company, at par, or 250 dollars for each share.
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, WILLIAM EAGLESON, deceased, the husband of the plaintiff, in June, 1812, being in want of money, applied to the defendant, who agreed to lend him 2,000 dollars, on bond and mortgage, provided he would take, also, four shares of the stock of the Commercial Insurance Company, at par, or 250 dollars for each share. The bill charged that the stock was then worth only 125 dollars a share, and was a mere colour for a usurious loan; hut the defendant taking advantage of the necessities a,nd weakness of W. E., the loan was effected; and a bond was, accordingly, executed, conditioned to pay the…
1Opinion of the Court
The Chancellor.'
It is admited by the answer, that the sale of the shares, at par, was made a condition of the loan of the 2,000 dollars ; and, as the defendant was a director of the insurance company, at the time of the sale, he must have known of the embarrassed circumstances of the company, and that the stock was, at the time, of doubtful credit, and below par. This fact is established by the master’s report; and it was oppressive, and tended to extortion and usury, to make the acceptance of the shares, at par, a condition of the loan. If such contracts are to be supported, the provisions…
2Cited by5 opinions
- Fanning v. DunhamNew York Court of Chancery · 1821
- New York Life Insurance and Trust Co. v. . BeebeNew York Court of Appeals · 1852
- Bishop v. Rider, New York County Courts1930
- Hart v. GoldsmithMassachusetts Supreme Judicial Court · 1861
- Thwaites v. DeaneNew York Supreme Court · 1887