Case ID: blackf_1/html/0366-01.html
Source: Caselaw Access Project
Author: {"author": "Scott, J. \n      Per Curiam.\n    ", "license": "Public Domain", "url": "https://static.case.law/"}
Date Created: 2024-08-24T03:29:51.129683

Fugate v. Ferguson.
    A debtor, in pursuance of a corrupt agreement to get time, gave his creditor an obligation payable at a future period, for a sum including the debt and usurious interest at 8 per cent, per annum from the time the debt accrued until the obligation was to be paid. Held, that the contract being usurious, the original debt without interest was all that could be recovered.
    
      Held, also, that a plea setting forth the usury, and also a payment of part of the principal, was not bad for duplicity.
    ERROR to the Wayne Circuit Court. — Debt by Ferguson, assjgnee 0f Munden, the obligee, against Fugate, the obligor, on a writing obligatory for 255 dollars and 20 cents, dated the 9th of June, 1820, and payable the last of Avgust following. Two pleas: the first in bar, except as to 142 dollars and 80 cents; the second in bar, except as to 178 dollars. They stated, that the defendant had been indebted to the obligee since the last of Avgust, 1818, in the sum of 220 dollars; that in pursuance of a corrupt and usurious agreement, the defendant, on, &c. in. consideration of forbearance, gave the obligation, &c. including that debt and usurious interest at 8 per cent, per annum from the time the debt accrued until the last of August, 1820, when the bond was made payable. The pleas further stated a payment of 42 dollars. The plaintiff, praying judgment for the part confessed, demurred specially to the pleas for duplicity, and for not answering what they professed to answer. Demurrers sustained, and judgment for the plaintiff below.
   Scott, J.

The first plea claims a greater deduction from the amount really due, than is authorized by the statute. The second claims a credit on the obligation, only for the usurious interest charged, and the payment actually made. This plea is good in substance and sufficiently formal, the demurrer to it ought therefore to have been overruled .

Rariden, for the plaintiff.

Smith, for the defendant.

Per Curiam.

The judgment is reversed, and the proceed-ings subsequent to the plea are set aside, with costs. Cause remanded, &c. 
      
       The rate of interest here is 6 per cent, per arm. If more be taken it is usury. Stat. 1823, p. 227. If a contract be usurious, the principal debt may be'recovered, but no interest. Crawford, v. Harvey, Nov. term, 1825, post.— Harvey v. Crawford, May term, 1827, post. The English statute of 12 Anne provides, that all bonds, contracts, and assurances whatsoever, whereupon and whereby shall be reserved or taken above the rate of 5 per cent, shall.be utterly void. 3 Stark. Ev. 1522. The English law of usury is fully explained in a note to Jones v. Davison, 1 Holt, 256.