Court Opinion

ID: 9680783
Source: CourtListenerOpinion
Date Created: 2023-08-24 07:38:35.237772+00
Date Added: 2024-06-11T18:17:30.483516
License: Public Domain

JAMES, Justice,
dissenting.
I respectfully dissent. I agree with the majority in that it is my opinion that the *43two-year statute of limitation does not apply. However, I disagree with the majority on the usury question. The majority holding is in effect this: That since the Plaintiff assessed delinquency charges against Defendant from February 1975 through May 1975 at the rate of one percent per month compounded monthly (after 30 days) for a total interest charge of $120.11, that the entire debt was tainted with double the amount of interest allowed by law under the provisions of Article 5069-1.06(2), calling for forfeiture of all principal plus reasonable attorney’s fees. T respectfully submit that such a disposition is not proper under the facts of this case.
Under Article 5069-1.03, Plaintiff was entitled to charge this account at the rate of six percent per annum from the first day of January after the deliveries of merchandise were made. This has been held to mean that such interest is chargeable from the first of the year after an account is made, regardless of the date on which it became due. Browning v. El Paso Lumber Co. (CCA 1911) 140 S.W. 386, no writ; Erb-Springall Co. v. Pittsburg Plate Glass Co. (CCA 1907) 101 S.W. 1165, no writ; 1 Tex. Jur.2d, “Accounts and Accounting,” par. 90, p. 340. Also see Tri-State Tire Service, Inc. v. Gates Rubber Co. (5th Cir. 1964) 339 F.2d 573.
Let us compute the amount of interest which Plaintiff had the right to charge the Defendant on this account under Article 5069-1.03 from its beginning down to November 22,1977, the date of the trial court’s judgment:
(1) On January 1, 1975, the Defendant’s principal balance was $3679.13, and his principal balance never fell below this amount during the year 1975. As we understand the above statute, from January 1, 1975, through December 31, 1975, Plaintiff was legally entitled to charge interest at 6% per annum for the year 1975 of $226.74.
(2) On January 1, 1976, the Defendant’s principal balance was $4554.72 and his balance never fell below this amount in 1976. From this date through December 31, 1976, interest at six percent amounts to $273.28.
(3)On January 1, 1977, the Defendant’s principal balance was still $4554.72. His balance never fell below this amount thereafter. From January 1, 1977, to November 22,1977 (date of the trial court’s judgment), interest at six percent per annum amounts to $265.65.
In short, the Plaintiff was legally entitled to charge the Defendant under Article 5069-1.03 interest in the total amount of $759.67.
Although the Plaintiff sued for no interest, he did charge the Defendant with $120.11 interest. Where the Plaintiff is entitled to charge interest in the amount of $759.67, but only charges $120.11 interest, I cannot see how we can say that the Defendant has been charged usurious interest. Indeed, the Defendant has actually been charged $639.56 less interest than he is liable for under Article 5069-1.03.
In my opinion, we should consider the account as a whole, particularly since Plaintiff’s suit is founded on quantum meruit, and determine first how much interest the Plaintiff was entitled to charge, and see whether he charged more than the proper charge, or less. Here, the Plaintiff charged $639.56 less than he was lawfully entitled to charge. Therefore, in my opinion, usury is not in the case.
I would reform the trial court's judgment by allowing the Plaintiff a net recovery of $4554.72 instead of the $1192.41 allowed by the trial court, and in all other respects I would affirm the trial court’s judgment.