Heidelberg Southern Sales Co. v. Tudor, 5-1636
| Decision Date | 13 October 1958 |
| Docket Number | No. 5-1636,5-1636 |
| Parties | HEIDELBERG SOUTHERN SALES COMPANY, Appellant, v. James R. TUDOR, Appellee. |
| Court | Arkansas Supreme Court |
Virgil D. Willis and Marvin A. Hathcoat, Harrison, for appellant.
John B. Driver and N. J. Henley, Marshall, for appellee.
The issue is whether a contract for the sale of a printing press is usurious. On July 23, 1956, appellant, Heidelberg Southern Sales Company, sold a printing press to appellee, James R. Tudor, under a title retaining contract. The purchaser made a part payment in cash and the balance was to be paid in monthly installments. Tudor refused to make the monthly payments, and Heidelberg filed this suit to replevy the machine. A jury was waived and the cause submitted to the court. From a finding by the court that the sales contract is usurious, the Heidelberg Company has appealed.
The sales contract shows a selling price of $4,823.84, with $1,062 being paid in cash, leaving a balance of $3,761.84, to be paid in 36 monthly installments with no interest. But this is not the entire picture. Ordinarily parol evidence is not admissible to vary the terms of a written contract, but there is an exception when such evidence is for the purpose of showing usury. Tillar v. Cleveland, 47 Ark. 287, 1 S.W. 516; Prickett v. Williams, 110 Ark. 632, 161 S.W. 1023; Crisco v. Murdock Acceptance Corp., 222 Ark. 127, 258 S.W.2d 551.
Here the trial court made a finding that the actual sales price was $4,250. From the evidence it does not appear that any other price was ever discussed. In fact, the invoice shows a selling price of $4,250, and a cash payment of $1,062, which would leave a balance owed of $3,188. The invoice also shows a finance charge of $573.84, and the entire balance to be paid in 36 monthly installments of $104.50 each. As pointed out by the trial court, this arrangement amounts to usury. Crisco v. Murdock Acceptance Corp., 222 Ark. 127, 258 S.W.2d 551.
In the case at bar the trial court said: 'From the pleadings and the testimony it appears that three written instruments were executed by the plaintiff in connection with this sale: First, the sales order dated July 13 signed by the defendant and by G. Martin as salesman; second, the conditional sales contract dated July 23, 1956; third, the invoice of the shipment. From these instruments and other evidence it appears that the basic cash price of the printing press was $4,250.00; that an old press was traded in and valued at $700.00 and that the defendant at that time paid $100.00 in cash leaving a balance due at the time the sales order was executed of $3,450.00. It is undisputed that the defendant later paid the additional sum of $262.00 in cash leaving a balance cash price of $3,188.00. This is the amount the purchaser could have paid and discharged his full obligation to the plaintiff. However, as the contract indicates, he elected to pay the balance in 36 monthly payments. It was then that the sum of $573.84 was added to the net cash price as ...
To continue reading
Request your trial
-
Carper v. Kanawha Banking & Trust Co.
...but the commercially sophisticated, this too is an indicia of a shift or device condemned by the courts. Heidelberg Southern Sales Co. v. Tudor, 229 Ark. 500, 316 S.W.2d 716 (1958); Kyser v. T. M. Bragg & Sons, 228 Ark. 578, 309 S.W.2d 198 (1957); Universal C.I.T. Credit Corp. v. Hall, supr......
-
American Physicians Ins. Co. v. Hruska
...even though it might have a tendency to vary a written document. Tillar v. Cleveland, 47 Ark. 287, 1 S.W. 516; Heidelberg Southern Sales Co. v. Tudor, 229 Ark. 500, 316 S.W.2d 716. This court has long taken the position that any evidence tending to show that the substance of a transaction w......
-
Tiffany Industries, Inc. v. Commercial Grain Bin Co., Inc.
...1226 (E.D.Ark.1978), aff'd sub nom. Hawkins Equip. Co. v. Goldstein, 603 F.2d 222 (8th Cir.1979); Heidelberg Southern Sales Co. v. Tudor, 229 Ark. 500, 502, 316 S.W.2d 716, 718 (1958). Moreover, Arkansas' strong public policy against usury weighs in favor of applying Arkansas law to invalid......
-
Aclin Ford Co. v. Cordell, 81-153
...signed a printed form of election to take the insurance, parol evidence is admissible to show usury. Heidelberg Southern Sales Co. v. Tudor, 229 Ark. 500, 316 S.W.2d 716 (1958). Aclin also argues that under decisions such as Universal C.I.T. Credit Corp. v. Lackey, 228 Ark. 101, 305 S.W.2d ......