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8 Teiss. 289

Winson v. Sullivan

Louisiana Court of Appeal

Decided April 17, 1911

Louisiana Court of Appeal · decided 1911-04-17

<p>Wlliere, in a series of transactions, beginning with loans of money and the giving of notes, and continued by the giving of new notes in place of those outstanding when the latter mature, the borrower pays cash usurious interest, he may recover, by way of direct action or of defense, all such interest as he paid for two years back and which was not capitalized or included in the note.</p>

Relies on Huntington v. Westerfield · Succession of Burguieres

Decided 1911-04-17

DUFOUR, J.

¶1The defendant urges as a defense to this suit on two promissory notes that the payment of usurious interest made by him exceed the amount of the notes, and he asks for judgment for such excess under Act 68 of 1908, -which allows such usurious interest to be recovered within two years from the time of its payment.

¶2It is shown by defendant, who was evidently believed by the trial judge, that the interest or discount charged When a new note wiais given for a maturing one was never capitalized or included in the note but was paid in cash.

¶3This fact brings the ease within the doctrine of Chadwick vs. Menard, 104 La. 48; Huntington vs. Westerfield, 119 La. 615, and O’Connor vs. Levy, 4 Court of Appeal 1, allowing defendant to recover interest thus paid, if seasonably demanded.

¶4The amount of interest paid from Mtetrch 1908 to March, 1910, the day the answer was filed, is $191; deducting $118, amount sued for, there remains an excess of $73. The judgment dismissing plaintiff’s demand and allowing defendant $69, as prayed for, isi correct.

¶5■Judgment affirmed.

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