Kotas v. Sorensen

On November 1, 1969, plaintiffs, Lumir T. and Dorothy E. Kotas, entered into a written agreement with George M. Sorensen. The Kotases gave Sorensen $5,000, which Sorensen agreed to repay within 60 days after written demand. Sorensen also agreed to pay 4 percent interest per quarter on the borrowed sum. The legal interest rate at the time was 9 percent per annum.

On February 1, 1974, Sorensen wrote to Mr. Kotas as follows: “As you remember on 2 May 1973 I sent you a letter informing you that I was terminating all the investment accounts in Pheonix [sic]. I made a trip to Pheonix [sic] the…