Mullen v. Russell
Supreme Court of Iowa
Appeal from Buchanan District Court. In chancery. The petition alleges that plaintiff borrowed of defendant, Russell, $500; that at the time of the loan plaintiff confessed a judgment to this creditor for the sum of $750, payable in installments, and that the contract was usurious and the confession of the judgment was a device to aid defendant in evading the statute against usury.
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Appeal from Buchanan District Court. In chancery. The petition alleges that plaintiff borrowed of defendant, Russell, $500; that at the time of the loan plaintiff confessed a judgment to this creditor for the sum of $750, payable in installments, and that the contract was usurious and the confession of the judgment was a device to aid defendant in evading the statute against usury. They allege that they believed at the time the judgment was confessed that it was in the amount of $500; that such belief was based upon what was said and read to them at the time, but they do not aver any…
1Opinion of the CourtBeck, J.
l. usury: confession of judgment. Usury taints a contract, whatever form it may be made to assume, and the courts will refuse to enforce it when the infirmity is properly pleaded. The , , I ,. statute in terms forbids the receipt by the creditor of usurious interest. The law cannot be violated by devices intended to conceal the true nature of the contract and the intention of the parties. The petition alleges that the confession of judgment in this case was made for the purpose of avoiding the statute; that it was adopted as a device whereby the law would be brought to the aid of the usurer…
2Cases cited2 opinions
- Twogood v. PenceSupreme Court of Iowa · 1867
- Troxel v. ClarkeSupreme Court of Iowa · 1859
3Cited by3 opinions
- Hightower v. CoalsonSupreme Court of Alabama · 1907
- Ohm v. DickermanSupreme Court of Iowa · 1879
- Stoddard v. LloydSupreme Court of Iowa · 1890