Simpson v. Philco Finance Corp.

BRIGHT, Circuit Judge.

This is an appeal by Philco Finance Corporation, Inc., a creditor of James Laurel Romine, a bankrupt, from a final judgment of the United States District Court for the Eastern District of Arkansas,1 affirming an order of the bankruptcy judge 2 disallowing a claim of Philco and dismissing a reclamation petition filed by Philco on the ground that a financing arrangement between Phil-co and the bankrupt was tainted with usury. We reverse.

The record indicates that Mr. Romine was a retail dealer in home appliances who sold the Ford-Philco line of products in Salem, Arkansas.…