Berger v. Lodge

MURPHEY, J.,

pro

tem.

This is an action for declaratory relief and to determine the legality of a conditional sales contract for the purchase of an automobile. The question at issue is whether or not the contract violates the Usury Law of the state of California. The trial court held the contract was legal and enforceable and gave judgment in favor of the defendants and against the plaintiff on which judgment the plaintiff prosecutes this appeal.

After disposing, by stipulation, of the formal and generally immaterial paragraphs of the pleadings by the respective parties, the cause was submitted to the court upon a stipulated statement of facts, substantially as follows: That at the time the conditional sales contract, referred to in the complaint, was executed the plaintiff inquired of the defendants if it was not possible for him to purchase said automobile on time, rather than for cash. Defendants informed plaintiff that the price of $1,010 was a cash price, but that if the plaintiff desired to purchase the said automobile on time payments, the times sales price on said automobile would be $1,112.69. It was further stipulated that there was no conversation between plaintiff and defendants relative to any interest charge or a charge for the loan or forbearance of money and there was no conversation that the sum of $102.69, being the difference between the cash price and the time sales price, was to be

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in any way interest or a charge for the loan or forbearance of money. It was further stipulated that at no time did the plaintiff state to the defendants that he was unable to pay the full purchase price of said automobile in cash and in this behalf it is further stipulated that the plaintiff informed the defendants that he preferred to buy said automobile at the time sales price rather than for the cash price. This latter stipulation negatived an allegation in plaintiff’s complaint to the effect that at the time of the negotiations for the purchase of the car the plaintiff informed the defendants that he was unable to pay the full purchase price of the car in cash.

At the time the appeal in this case was taken the question as to whether a transaction of this character fell within the purview of the Usury Laws of this state had not been specifically passed upon by our appellate or supreme courts. The great weight of authority, however, in other jurisdictions having similar laws extend little comfort to the appellant’s contention. However, since this case was briefed the supreme court in the case of