Foley v. Equitable Investment Co.

Supreme Court of Pennsylvania May 26, 1920

Foley v. Equitable Investment Co., 267 Pa. 514 (Pa. 1920)

110 A. 239; 1920 Pa. LEXIS 901

Brown, Frazer, Kephart, Moschzisker, Simpson, Walling

Opinion of the Court

Per Curiam,

Frederick M. Jackson, John Waldron and Orton W. Albee, while transacting business as partners, bor*516rowed moneys from P. T. Foley, the appellee, to whom they paid usurious rates of interest. The partnership became the appellant corporation, which gave its obligations to the appellee for his claims against the partnership and for loans made to itself. He entered judgment against it on a judgment note which it had given to cover its obligations to him, and the same was opened to allow proof of the payments of usurious interest as set-offs. On the trial of the issue, without a jury, to determine the amount due on the judgment, the defendant claimed credits for usurious interest paid, not only by it, but by the partnership. The court refused to allow any set-off for such interest paid by the partnership, and this was undoubtedly correct: Little’s Estate, 244 Pa. 368.

The complaint of the appellant is dismissed and the judgment affirmed.

Reference

Status: Published
Syllabus: Interest — Usury—Partnership — Corporation — Set-off — Judgment on note of corporation covering usurious interest of partnership. Where a partnership owing money to an individual on a contract involving usurious interest, becomes incorporated, and the obligations of tbe partnership are assumed by the corporation, which gives a judgment note to the creditor, covering the debt owing by the partnership, and also debts owing by the corporation itself, the corporation cannot, on an issue to try the amount due on the judgment entered on the note, claim credits for usurious interest paid by the partnership.