McConnell v. Merrill Lynch, Pierce, Fenner & Smith, Inc.

I dissent. The second amended complaint states a cause of action neither for unlawful compounding of interest nor for usury. It is evident the complaint cannot be amended to state a cause of action. The judgment of dismissal should be affirmed.

Compound Interest

The trial court properly sustained demurrer to the compound interest causes of action of the second amended complaint.

Section 2 of the Usury Law provides that interest shall not be compounded unless an agreement to that effect is clearly expressed in writing. The second amended complaint alleges that plaintiffs and the members of the…