Calvert Credit Corporation v. Williams
| Decision Date | 03 October 1969 |
| Docket Number | No. 4683.,4683. |
| Parties | CALVERT CREDIT CORPORATION, Appellant, v. Dalbert WILLIAMS and Bardeen W. Williams, Appellees. |
| Court | D.C. Court of Appeals |
H. Alan Young, Washington, D. C., with whom William R. Lichtenberg and Joseph Luria, Washington, D. C., were on the brief, for appellant.
Before KELLY, FICKLING and NEBEKER, Associate Judges.
Appellant instituted this action to recover the balance due on a promissory note executed by appellees for the purchase of a central vacuum cleaning system and a color television console from National Commercial Corporation. Appellees answered alleging, among other defenses, usury, fraud, and that appellant was not a holder in due course. At the close of appellant's case, which was tried to a jury, the trial judge granted appellees' motion for a directed verdict on the ground that the charges over and above the cost of the merchandise were usurious and, for that reason, appellant was not a holder in due course. On appeal, appellant challenges the correctness of that ruling.
The president of appellant corporation testified that on January 17, 1964, a conditional sales contract and note which had been executed by appellees on January 15, 1964, were purchased by the corporation for $2,162.35 from National Commercial Corporation. The contract showed a cash price of $2,284 and a time price of $3,199.32, including a charge of $93.16 for insurance. It also provided for 36 monthly payments at $88.87 per month. Introduced into evidence were a bill of sale dated January 15, 1964, showing a net sales price of $2,284, and a form letter dated January 16, 1964, from appellee Dalbert Williams to appellant stating that the merchandise was received and installed satisfactorily.
The president further testified that appellant had purchased from two to three hundred conditional sales contracts from National Commercial Corporation over a two-year period, and that the corporation was also in the money-lending business. Appellant admitted knowing that National normally added 12 percent per year to the cash price as the "time price difference." Appellees were investigated by appellant and were found to be a good credit risk. Prior to the purchase of the note, appellant had no contact with appellees.
Appellee Dalbert Williams was called as a witness by appellant and, on direct examination, testified that he holds a master's degree in social science and is an instructor at one of the local universities; that he had had previous experience in buying merchandise under conditional sales contracts and that he knew that the documents signed in the instant case were a conditional sales contract and a promissory note. However, on cross-examination he testified that he agreed to accept the merchandise from National Credit Corporation under an arrangement commonly known as a "referral plan." Under this plan, appellees were to supply National with a list of names of persons who might also be interested in purchasing merchandise from National. For each person who made a purchase, appellees' outstanding balance was to be credited with $100. Appellees were told by National's salesman that, as a part of the arrangement, they were required to sign the sales agreement and note as a mere formality; that the total price of the merchandise would be $1,000, but not more than $1,200; and that it would be the "remotest possibility" that they would have to pay anything for the merchandise out of their own pockets under the referral plan. They signed the documents in blank because the salesman did not have the exact figures with him. Appellees received $200 under the plan and sent that amount to appellant. They made no further payments and offered to return the merchandise. ...
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Fuller v. Universal Acceptance Corporation, 4944.
...79 U.S.App.D.C. 168, 144 F.2d 511 (1944); Universal Acceptance Corp. v. Marzullo, D.C.App., 260 A.2d 90 (1969); Calvert Credit Corp. v. Williams, D.C. App., 256 A.2d 902 (1969); Russell v. Universal Acceptance Corp., D.C.App., 210 A.2d 834 (1965). 3. See Universal Acceptance Corp. v. Marzul......
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Lee v. Household Finance Corporation, 4822.
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