1250 Broadway, 27th Floor New York, NY 10001

DISINTERESTED

interest_rates_charts_books_photo_nyreblog_com_.JPGWhen Philip Sagona and his company allegedly failed to repay monies lent to them, Joseph Venables sued.

Since the loan's 25% interest exceeded the maximum rate allowed by law, both the Nassau County Supreme Court and the Appellate Division, Second Department, thought that Venables couldn't recover either the principal or the interest payments.

And because the underlying agreement "lacked consideration," and the borrower hadn't made any material representations which would have constituted "fraud," Venables's breach of contract and fraud claims were dismissed. (The promise to make future payments, in and of itself, wasn't enough to support the dispute's continuation.)

Was there a lack of interest in this case?interest_gif_nyreblog_com_.GIF

To view a copy of the Appellate Division's decision, please use this link: Venables v. Sagona

Categories: