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80 N.Y. 198

Pratt v. . Elkins

New York Court of Appeals

Decided February 24, 1880

New York Court of Appeals · decided 1880-02-24

The defense was usury. The evidence to sustain the defense is set forth in the opinion. Defendant testified that all the transactions in regard to the note in suit, and other notes upon which suits were pending, which were tried with this, were with either David Wood or Elisha Cole, clerks of Mr. Foster, plaintiff’s testator, at his banking-house.

Good law ✅— No negative treatment on recordhow we know

Decided 1880-02-24

How this case has been cited

Cited by 9 later decisions — most recently October 1960

8 state decisions

20188018901900191019201930194019501960decided

Later decisions citing this case, by decade. The current decade is in progress, and our corpus holds fewer opinions from the most recent years, so the latest bars are undercounted — not a real decline.

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Rapallo, J.

¶1 The testimony of the defendant as to his dealings with Wood and Cole, the clerks of plaintiff’s testator, was not within either the letter or the spirit of the prohibition contained in the Code. The prohibition is con-, fined to personal transactions with a deceased party, and docs not extend to transactions with the agents of such O ■ party. The evidence of the defendant was, therefore, properly admitted.

¶2 We think, also, that the evidence was sufficient to sustain the finding of the referee that the note in suit was tainted with usury. The defendant testified that at the time of giving it he paid interest on the amount at the rate of one dollar a day for $1,000 ; that it was given in renewal of other notes, on which the same rate of interest was paid, and that the same rate was .paid on the note given for the original loan; that all the notes were delivered to, and the interest received by Wood or Cole, clerks of the plaintiff’s testator, at his banking-house. .There was no pretense that any part of this interest was paid to Wood or Cole as commission for their services, or for their benefit in any way, or otherwise than as the clerks of the testator. 0

¶3 Mr. Wood, one of the clerics, contradicted the defendant’s statements. Mr. Cole, the other clerk, testified that he knew of notes received from defendant by the deceased; that defendant sometimes paid one dollar on $1,000 for loans, and witness did not remember any at a less rate ; that witness made some of them by direction of the deceased. This evidence was competent for the purpose of showing that Cole’s authority was not restricted to taking seven per cent on loans.

¶4*202 Even though it were hot shown that the original loan was usurious, if the note given in renewal was tainted with' usury that security was void, and an action could not be maintained upon it, whatever right the plaintiff might have had to sue for the unpaid balance of the original loan.

¶5 The order of the General Term should be reversed, and the judgment upon the report of the referee affirmed, with costs.

¶6 Andrews, Earl and Danforth, JJ., concur; Folqeb, J., dissents; Church, Ch. J., and Miller, J., absent at argument.

¶7 Order reversed and judgment affirmed.

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