Opinion ID: 1256442
Heading Depth: 2
Heading Rank: 2

Heading: The Glasby Loan

Text: In late 1979, Carlton Glasby and Gloria Glasby (the Glasbys) sought to borrow $500 to pay utility bills. They were homeowners. They responded to an advertisement by Valley which stated that Valley made mortgage loans. Though they applied to Valley for a loan, the loan they actually received was not from Valley; it was from Wiesen, still Valley's president. The loan documents were prepared on October 31, 1979. The principal amount of the Glasby loan was $550, which the Glasbys received. In order to secure the $550 loan, the Glasbys obligated themselves to repay Wiesen a total of $2,416.80 over four years and to give Wiesen a deed of trust on their home. The total repayment amount agreed to by the Glasbys included, in addition to the loan amount, a charge for credit life and credit accident insurance of $237.57; recording fees of $100; attorney's fees of $300; appraisal fees of $200; interest of $789.30; points of $93.81; mortgage guaranty insurance premiums of $31.73; a service charge of $31.88; and a broker's fee of $82.50 paid to Valley. The annual percentage rate of the Glasby loan was 30.48%. At the time of the Glasby loan, the small loan ceiling was $2,300 in principal amount. At that time, Wiesen was not licensed to make loans covered by the Act. She was in the lending business, but the loans she made were secured by real estate; and she had made ten loans in five years that were within the small loan amount, but which were nonetheless secured by deeds of trust. The Glasbys sued, claiming that the loan violated the Act. The trial court ruled in the Glasbys' favor and granted them summary judgment against Wiesen. The bases for the court's ruling in Glasby were essentially the same as in Harper. The trial court declared the Glasby loan void, entered summary judgment against Wiesen, and continued the case for trial on the Glasbys' claims for punitive damages and attorney's fees. [2] After a hearing, which was consolidated with the Harper hearing, the trial court awarded the Glasbys punitive damages of $247.50, with interest, against Valley. In addition, the court awarded the Glasbys attorney's fees of $250.00, with interest, again against Valley.