LOUISE J. WELLS, APPELLANT,
v.
IRVIN FREEDMAN ET AL., APPELLEES
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Wells sued defendants on a $150,000 promissory note. Defendants raised a usury defense, claiming the note was unenforceable under Florida statute due to excessive interest charges and additional fees. The trial court granted summary judgment for defendants, but the appellate court reversed, finding material factual disputes precluding summary disposition on the usury issue.
Summary judgment was improper because material factual disputes exist regarding the $7,521 note and forbearance agreement. Usury is ordinarily a question of fact for trial, not summary disposition. However, attorney's fees are not authorized under Section 687.04 in this context.
[1] Usury is ordinarily an issue of fact to be determined at trial.
[2] Usury is largely a matter of intent, and the fact that the lender has received more than the law permits is not fully determinative of this issue.
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Join FLexlaw to unlock all legal intelligence“Usury is ordinarily an issue of fact to be determined at trial.”
Establishes that summary judgment was improper for a usury defense
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Join FLexlaw to unlock all legal intelligenceWells loaned $150,000 to defendants at 10% annual interest. Defendants alleged Wells received an additional $7,521 bonus at origination and demanded $…
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PER CURIAM.
By these consolidated appeals, Louise Wells, plaintiff in the trial court, appeals from an adverse summary final judgment in favor of the defendants, Irvin Freedman, Outrigger Club, Inc. and Biscayne West, Inc. Defendants appeal the trial court’s denial of their petition for an award of attorney’s fees. Plaintiff sued on a promissory note executed by the defendants in the sum of $150,000.00. Defendants responded to the complaint alleging affirmative defenses, inter alia, that the note sued upon was usurious and unenforceable under Sections 687.-02, 687.03 and 687.071(7), Florida Statutes. In support of this contention, defendants alleged that the original loan bore interest thereon at the rate of ten per cent (10%) per annum; that plaintiff demanded and received $7,521.00 as an additional bonus for the $150,000.00 loan, which sum was evidenced by a promissory note executed on the same date as the original loan; that plaintiff and defendants Irvin Freedman and Outrigger Club, Inc., entered into an agreement whereby plaintiff would forbear from collecting the $150,000.00 note on its due date, February 4, 1974, and extend the term of the loan until May 30, 1974;1 that for this extension and forbearance, plaintiff required an additional $12,000.00.
Plaintiff replied to the affirmative defenses, denying the validity of the forbearance agreement and alleging that the $7,521.00 represented back taxes owed to the plaintiff by defendant Freedman.
The trial court found no genuine issues of material fact and entered summary final judgment declaring plaintiff’s $150,000.00 note unenforceable under Section 687.-071(7), Florida Statutes. A judgment for the defendants was entered against plaintiff in the sum of $21,042.00, which represented a penalty of double interest pursuant to Section 687.04, Florida Statutes, together with a judgment for plaintiff on defendants’ counterclaim for attorney’s fees under Section 687.04, Florida Statutes.
In reviewing the record, which is comprised of depositions, affidavits and exhibits, plaintiff’s affidavits allege mutual fraud and mistake by defendants as to the forbearance agreement and facts supporting plaintiff’s contention that the $7,521.00 note was given as payment for back taxes.
We reverse and hold that there are present issues of material fact remaining to be tried in this cause. Usury is ordinarily an issue of fact to be determined at trial. Kellerman v. Siegal, 319 So. 2d 581 (Fla.3d DCA 1975). Moreover, usury is largely a matter of intent, and the fact that the lender has received more than the law permits is not fully determinative of this issue. Dixon v. Sharp, 276 So. 2d 817, 820 (Fla.1973). In the instant case, factual disputes exist as to the $7,521.00 note and the forbearance letter. Accordingly, we reverse the summary judgment.
While the question of attorney’s fees raised herein may ultimately be rendered moot, depending upon the outcome of the trial, we agree with the trial court’s judgment that attorney’s fees are not authorized under Section 687.04, Florida Statutes.
Affirmed in part and reversed in part.
. From the face of the extension agreement itself, it appears that the term of the note was extended until March 31, 1974, at which time part payment of the principal was to be made, with the remaining principal and accrued interest payable thirty days thereafter. Further, it appears that the extension agreement was executed by Biscayne West, Inc.
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Oregrund Ltd. P'ship v. Sheive, 873 So. 2d 451 (Fla. 5th DCA 2004)…v. Lindsay, 102 Fla. 935, 136 So. 666 (1931); Tucker v. Fouts, 73 Fla. 1215, 76 So. 130 (1917); Swanson v. Gulf West Intern. Corp., 429 So. 2d 817 (Fla. 2d DCA 1983). Although the determination of usury is one for the fact finder, Wells v. Freedman, 342 So. 2d 983 (Fla. 3d DCA 1977); where there is no conflict in the material facts, it is one of law for the court. Rebman v. Flagship First National Bank of Highlands County, 472 So. 2d 1360 (Fla. 2d DCA 1985). The Legislature enacted usury laws to remedy an ex…1 / 2
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Bell v. Bailey, 639 So. 2d 1063 (Fla. 3d DCA 1994)…clude that a genuine issue of material fact was therefore presented as to whether a criminally usurious rate of interest was charged in this case, thereby precluding summary judgment. See Holl v. Talcott, 191 So. 2d 40 (Fla.1966); Wells v. Freedman, 342 So. 2d 983, 984 (Fla. 3d DCA 1977), cert. denied, 366 So. 2d 881 (Fla.1978); First Mortgage Investors v. Boulevard Nat’l Bank, 327 So. 2d 830 (Fla. 3d DCA 1976); see also Naples Cay Dev. Corp. v. Ferris, 555 So. 2d 1272, 1273 (Fla. 2d DCA 1989), rev. denied, 5…
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Blaine v. Cichocki, 388 So. 2d 50 (Fla. 3d DCA 1980)…PER CURIAM. Affirmed. See Delgado v. Strong, 360 So. 2d 73 (Fla.1978); Wells v. Freedman, 342 So. 2d 983 (Fla. 3d DCA 1977); Sharp v. Dixon, 252 So. 2d 805 (Fla. 4th DCA 1971); Stewart v. Nangle, 103 So. 2d 649 (Fla. 2d DCA 1958). Affirmed.…
Authorities Cited
- Dixon v. Sharp, 276 So. 2d 817 (Fla. 1973)
- Kellerman v. Siegel, 319 So. 2d 581 (Fla. 3d DCA 1975)