Summary
In Fed. Mtg. Co. v. Hawkins, 131 Tex. 56, 111 S.W.2d 1062 (138), this Court expressly disapproved the Court of Civil Appeals opinion and pointed out that the Dallas Court had correctly decided the Davis case. This Court reversed and rendered for the mortgage Company on the Dallas case as authority.
Summary of this case from State v. StandardOpinion
No. 7167.
Decided January 12, 1938. Rehearing overruled February 9, 1938.
Usury.
A contract, which at its inception, does not evidence an intention to yield interest at a greater rate than ten per cent. per annum is not tainted with usury. Davis v. Federal Mortg. Co., supra, p. 46, followed.
Error to the Court of Civil Appeals for the Second District, in an appeal from Denton County.
Suit by Mattie Hawkins against the Federal Mortgage Company and others to set aside a loan contract upon the ground of usury, in which the Equitable Trust Company filed a cross action to recover unpaid principal of the loan and to establish and foreclose a lien against the real property securing same. Judgment for plaintiff was reformed and affirmed by the Court of Civil Appeals ( 95 S.W.2d 744), and the Federal Mortgage Company has brought error to the Supreme Court.
The case was submitted to the Court sitting with the Commission of Appeals, and an opinion written by Mr. Judge MARTIN, of the Commission, was adopted as the opinion of the Supreme Court.
The judgments of both courts reversed and judgment here rendered for Equitable Trust Company as prayed for by it.
Owsley Owsley, of Denton, John F. Murphy, Thompson, Knight, Baker Harris, and Marshall Thomas, all of Dallas, for plaintiffs in error.
Geo. M. Hopkins, of Denton, Lyle Saxon and J. E. Burkholder, both of Dallas, for defendant in error.
Robert M. Vaughn, and Crane Crane, all of Dallas, filed briefs as amici curiae.
The Fort Worth Court of Civil Appeals reformed and affirmed the judgment of the trial court in this case, holding in effect that the contract pleaded and proven was a usurious one. Federal Mortgage Company et al. v. Hawkins, 95 S.W.2d 744. The Dallas Court of Civil Appeals reached an opposite conclusion, in a case where the controlling facts were identical with the present case. Federal Mortgage Company et al. v. Davis, 100 S.W.2d 717. This last holding has this day been affirmed by us. ( Supra, p. 46.)
It is our opinion that the Dallas Court has correctly decided the question at issue, and a further discussion would be useless.
Judgment of the trial court and that of the Court of Civil Appeals are both reversed and judgment rendered for Equitable Trust Company as prayed for by it.
Reversed and rendered.
Opinion adopted by the Supreme Court January 12, 1938.
Rehearing overruled February 9, 1938.