Yardley v. New York Guaranty & Indemnity Co.
U.S. Circuit Court for the District of Western Tennessee
The original bill was filed on the 20th day of May, 1875, in the chancery court of Shelby county, Tennessee, by T. W. Yardley as owner of three bonds for $1,000 each, of an issue of 600 bonds for $1,000 each, made by the Memphis Water Company, and secured by a trust deed or mortgage of the franchises and property of the company made to F. S. Davis and T. R. Farnsworth, trustees.
Read the full summary
The original bill was filed on the 20th day of May, 1875, in the chancery court of Shelby county, Tennessee, by T. W. Yardley as owner of three bonds for $1,000 each, of an issue of 600 bonds for $1,000 each, made by the Memphis Water Company, and secured by a trust deed or mortgage of the franchises and property of the company made to F. S. Davis and T. R. Farnsworth, trustees. The complaint alleged that the defendant, the New York Guaranty and Indemnity Company, held two hundred and sixty-seven of said bonds as collateral for a loan made at New York City to the Water Company, for which…
1Opinion of the Court
BROWN, District Judge.
While the general rule is recognized by all the authorities that a stranger cannot set up usury as a defense, and that the transaction can only be impeached by the borrower or those in privity with him, the application of this doctrine has occasioned a vast amount of litigation, and the authorities are far from harmonious. These questions of privity have arisen most frequently in the state of New York, where the penalty for usury is most severe, and usurious loans most frequent. The following rules are deduced from the authorities of that state:.
1. That, notwithstanding…
2Cases cited24 opinions
- Thompson v. . Van VechtenNew York Court of Appeals · 1863
- Green v. KempMassachusetts Supreme Judicial Court · 1816
- Hartley v. . HarrisonNew York Court of Appeals · 1861
- Shufelt v. ShufeltNew York Court of Chancery · 1841
- Post v. DartNew York Court of Chancery · 1841
19 more not listed; retrieve them via the Exa API.