Case ID: root_1/html/0396-01.html
Source: Caselaw Access Project
Author: {"author": "", "license": "Public Domain", "url": "https://static.case.law/"}
Date Created: 2024-08-24T03:29:51.129683

Cowles v. Hart & Bristol.
    
      Indebitatus assumpsit will not lie for the principal sum actually lent upon an usurious mortgage, which has been adjudged to he void.
    AotioN of indebitatus assumpsit for money paid and advanced to tbe defendants. Plea — Nonassumpsit. Issue to tbe jury.
    Tbe jury found a special verdict, tbat on tbe 27tb of December A: D. 1185 tbe plaintiff at tbe special instance and request of tbe defendants, did pay to tbeir use, tbe sum of £59 18s. 9|d. lawful money; tbat tbe defendants were at tbat time indebted to tbe plaintiff for goods, etc. sold tbem; also tbat they were indebted to Nebemiah Street in like manner; tbat afterwards, on tbe same day, tbe plaintiff, said Street and tbe defendants accounted together for all said several sums of money, and it was tben and there afterwards on tbe said day, corruptly agreed by and between. tbe plaintiff, said Street and tbe defendants tbat tbe plaintiff and said Street should give tbe defendants further forbearance for tbe term of two years, for which tbe defendants should pay tbe lawful interest on all said sums; and also a further sum over and above tbe lawful interest, together with said sum of £59 18s. 9|d. amounting in tbe whole to £460 lawful money, and tbat tbe defendants should secure tbe same by a mortgage of certain lands, according to said corrupt agreement, and for no other cause, and in pursuance of said corrupt agreement tbe defendants secured said sum of £460 to be paid by mortgages of certain lands, and describes tbem; which several deeds have . been adjudged to be usurious and void by tbe Superior Court; and tbat no part of said £59 18s. 9d. bath ever been paid to tbe plaintiff, and refer tbe question of law to tbe court upon tbe facts aforesaid.
   The court were of opinion — Tbat tbe law is so upon tbe facts aforesaid tbat tbe defendants did not assume and promise; and gave judgment for tbe defendants to recover tbeir cost.

Tbe statute makes void all obligations, securities, mortgages, etc. given for more than lawful interest as a penalty upon the lender, and for the protection of indigent borrowers. If the plaintiff might recover the principal of his debt in this action, after his security is avoided, the design of the statute would be in a measure defeated — the manifest intention of which is not only to make void the security; but the debt also.