Gilbert v. Wisdom
The primary issue in this case is the nature of a financial transaction between plaintiffs Richard and Kathryne Gilbert and defendant A. L. Wisdom. Plaintiffs argue that the transaction was a loan subject to the usury laws, and that the interest on the loan was usurious. Defendant argues that the transaction was a refinance of an existing purchase money loan on real property, and a bona fide credit sale. Accordingly, he finds the usury law inapplicable. After plaintiffs filed a motion for summary adjudication, the trial court found that the transaction was a loan at a usurious rate of interest. Defendant appeals the resulting judgment. Court agree with the trial court that the transaction was a loan with a usurious interest rate, and we affirm the trial courts decision on the motion for summary adjudication on the usury cause of action. However, we agree with defendant that the subsequent procedure for entry of judgment was faulty, and we therefore reverse the judgment and remand for further proceedings on the remaining causes of action.
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