Lacy v. Bennett

JEFFERSON, J.

This is an action to recover money which was alleged to have been loaned by plaintiff to defendant. The complaint alleged two separate loans, and the answer denied each allegation. The matter was tried before the court without a jury. The court found in favor of plaintiff

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and entered judgment accordingly. Defendant filed a motion for new trial which was denied. This is an appeal from the judgment and order denying motion for new trial.

Plaintiff testified that in July 1957 she agreed to loan defendant $2,500. In order to make the loan, plaintiff obtained a loan from the credit union at her place of employment. The loan sheet and a cancelled cheek from the credit union in the amount of $2,500 payable to plaintiff were received in evidence. Plaintiff cashed the check at a local bank and gave the money to defendant in cash. She stated there was a general understanding that this was to be a “long-term loan, there was no definite date for paying that back.”

In August 1958 defendant threatened plaintiff that she would not pay any of the amount previously loaned to her unless plaintiff would loan her an additional $1,500. In order to make the latter loan, plaintiff borrowed the money from the Bank of America. A cancelled check from the bank in the amount of $1,500 payable to “cash” and endorsed by plaintiff was received into evidence. Plaintiff cashed the check and gave $1,400 in cash to defendant. Plaintiff testified that at the time of making this loan, defendant said that she was going to repay $3,000 all at once “by the end of the year when she expected to sell her property.” In January or February 1959 plaintiff asked defendant “how the property was going,” and requested that “she would please start paying something monthly on the loan at least.”

Plaintiff further testified that in June 1959 defendant informed plaintiff that she received a letter from plaintiff’s attorney concerning repayment of the loans. Defendant told plaintiff that she had been planning to pay her something, but now she wouldn’t pay anything at all unless plaintiff would forbear from bringing legal proceedings.

On cross-examination plaintiff admitted in reference to both loans that there was no agreement to pay interest; that there was no agreement for periodic repayments; and that no partial payments had ever been made.