Clausing v. Virginia Lee Homes, Inc.

This is an action for judgment on a promissory note and for the foreclosure of a real estate and chattel mortgage. Defendants pleaded, and the court found, that the transaction was usurious.

After trial on the merits, the court entered judgment in favor of plaintiffs for $51,827.60, together with interest, and directed foreclosure of the mortgages.

There is a wide divergence between the claims of the parties. Defendants appeal, claiming that after the application of the statutory penalty for usury to the transaction, they have overpaid plaintiffs $729.99. Plaintiffs cross-appeal, contending…