Title: Cochran v. State

State: alabama

Issuer: Alabama Supreme Court

Document:

119 So. 2d 339 (1960)
H. T. COCHRAN et al., d/b/a Credit Loan Service,
v.
STATE of Alabama ex rel. MacDonald GALLION, Attorney General.
1 Div. 849.

Supreme Court of Alabama.
March 24, 1960.
*340 Graham H. Sullivan and Herndon H. Wilson, Mobile, for appellants.
MacDonald Gallion, Atty. Gen., and Jos. D. Phelps, Asst. Atty. Gen., for appellee.
MERRILL, Justice.
This appeal is from a decree overruling demurrer to the bill, a decree denying appellants' motion to discharge a temporary injunction, and a decree denying appellants' motion to dissolve the temporary injunction.
The State, on relation of the Attorney General, filed on May 26, 1959, in the Circuit Court of Mobile County, In Equity, a bill of complaint for a temporary and permanent injunction, seeking to enjoin the respondents, H. T. Cochran, Allen D. Shores and Ben Peilen, partners, doing business as Credit Loan Service, and individually from making usurious loans or collecting usurious interest in violation of the statutes of the State of Alabama.
The bill alleged that in making loans, the respondents have charged or received and are continuously and knowingly charging or receiving high and usurious rates of interest greatly in excess of the amount authorized by law to be charged, and that respondents have taken advantage of borrowers in necessitous circumstances who are not advised of their legal rights, and that respondents have systematically and continuously harassed and threatened these borrowers.
The bill follows closely the allegations of the bill in Larson v. State ex rel. Patterson, *341 266 Ala. 589, 97 So. 2d 776, except that it alleges that harsh and harassing collection tactics are employed by respondents.
The bill of complaint was presented to the court and an ex parte injunction was issued under Tit. 7, § 1054, Code 1940.
On June 1, 1959, respondents filed demurrer, motions to dissolve and discharge and an answer, all of which were heard by the court on June 6. Respondents offered affidavits in support of their answer and motions and the State offered affidavits supporting the allegations of the bill. On June 12, the court entered orders overruling the demurrer and denying the motions to dissolve and discharge but allowed respondents to post a supersedeas bond of $5,000.
Appellants argue that the bill was not properly verified because the affidavit stated that some allegations were averred on "information and belief."
The stating part of the affidavit to the hill reads: "that the facts set forth in said petition are true, except the matters and things averred in said petition on information and belief, which matters and things he verily believes to be true as therein alleged."
The only allegation in the bill based on "belief" is that the "complainant further alleges that it is his belief that the respondents will continue to violate the provisions of the statutes of Alabama set forth above and will continue to exact large sums of money as usurious interest, unless restrained therefrom by order, judgment or decree of this Court." It is difficult to see how future actions could be averred except upon belief. The objection is without merit. Practically the same verification was held sufficient in Berman v. Wreck-A-Pair Building Co., 234 Ala. 293, 175 So. 269.
Also, we have held that a defective verification is not ground for dissolving an injunction unless the complainant fails, when required by the court, to verify the bill by a sufficient affidavit. Greenwood v. State ex rel. Bailes, 230 Ala. 405, 161 So. 498; Forney v. Calhoun County, 84 Ala. 215, 4 So. 153; Jacoby v. Goetter, Weil & Co., 74 Ala. 427.
We think the bill was good as against objections that it was indefinite, that it did not allege a nuisance or that the apprehended nuisance or injury was contingent, conjectural or problematical. Larson v. State ex rel. Patterson, 266 Ala. 589, 97 So. 2d 776; O'Dell v. State ex rel. Patterson, Ala., 117 So. 2d 164; Wilson v. State ex rel. Gallion, Ala., 119 So. 2d 337.
Appellants contend that the wording of the injunction is not clear because they are enjoined from violation of a nonexistent section of the Code. The order reads in part "* * * are further enjoined and restrained from violating Title 5, Section 271(b), Code of Alabama 1940, and Title 9, Section 65, Code of Alabama 1940."
There is no codified provision as Tit. 5, § 271(b). This statute first came into law in 1945, and was amended in 1951, and although it is listed in the cumulative pocket part as Tit. 5, § 271(b), it has not been codified and is not a part of the Code of 1940. However, this is a technical matter, and while incorrect in wording, it does not follow that appellants are unable to know or ascertain that they are enjoined from violating the provisions of the 1945 Act as amended by the 1951 Act. Although erroneous, the error is not such as to vitiate the order of injunction.
The only remaining question relates to the use by respondents of credit insurance in connection with the loans. It is obvious that the trial court was influenced by evidence in the affidavits presented by the State concerning the credit insurance practices of appellants because apparent reference is made thereto in the order denying the motion to discharge and the motion to dissolve the temporary injunction.
*342 The affidavit of the president of one of the insurance companies, with whom respondents did business, was that his company receives only 1½ percent of the amount of the loan made to the borrower. The commission to the respondents is 90 to 95 percent of the total premium. Another company received only 5.54 percent of the premium. A former employee of respondents stated in an affidavit:
The trial court referred in its order to Grider v. Calfee, 242 Ala. 50, 4 So. 2d 474, 475, where it was stated:
In Tribble v. State, 89 Ga.App. 593, 80 S.E.2d 711, 714, the defendant was convicted of violating the statute relating to usurious interest and failure to secure a small loan license. The borrower was required to take out insurance, but the policy was not delivered to him. The defendant retained 75 percent of the premium charged, and from an escrow account, he drew an additional 10 percent, making a total of 85 percent. On one $50 loan for four months, to be repaid in eight installments of $9.06 each, totaling $72.48, the charges were $1 interest, $.25 policy writing fee, and $21.23 insurance. The court said:
We are not to be understood as condemning all forms of insurance in all cases where loans are made. But the practice of attempting to evade laws against usury by charging and retaining exorbitant insurance premiums as was done here and in the Tribble case is not sanctioned.
Finally, it is the rule in Alabama that upon the hearing of a motion to dissolve, the question of continuing the injunction is largely discretionary with the court, notwithstanding the denials filed by the respondent. West v. State ex rel. Matthews, 233 Ala. 588, 173 So. 46; Slay v. Hess, 252 Ala. 455, 41 So. 2d 582. There is no evidence that the court abused its discretion.
Affirmed.
SIMPSON, STAKELY and GOODWYN, JJ., concur.