Pelavin v. Fenton, Davis & Boyle

Plaintiffs brought suit against defendant to recover $6,730 which they claim. Plaintiffs were in the building business. Defendant was an investment banker. Plaintiffs wanted to build an apartment house on a lot owned by them and were without money to do so. They made a construction loan of defendant of $196,000 at 7%, secured by a real estate mortgage upon the real estate and building to be erected thereon. Bonds to that amount were issued and sold by plaintiffs to defendant at 85‡ on a dollar, and sold by the defendant to the public for par and interest. The contract provided that the 15 per…