Gelzinis v Lagoon Aviation Inc [1973] TTLawRp 53; 6 TTR 404 (30 November 1973)

6 TTR 404

PETER P. GELZINIS, JR., Plaintiff

v.

LAGOON AVIATION INC., a CORPORATION, and

JERRY KRAMER, Defendants

Civil Action No. 14-73

Trial Division of the High Court

Marshall Islands District

November 30, 1973

Action for balance due on note. The Trial Division of the High Court, D. Kelly Turner, Associate Justice, held the note payable in stock of borrower corporation pursuant to oral agreement made subsequent to written note and allowing for cash or stock payment.

1. Bills and Notes-Promissory Notes-Persons Liable on Note

When a maker of a note signs as an agent or in a representative capacity, he is not personally liable on the note.

2. Contracts-Oral Contracts-Proof

Evidence of oral agreement that prior, written, nonnegotiable note was to be repaid in either cash or stock of borrower, a corporation, was not barred by parol evidence rule in action to recover on the note.

3. Bills and Notes-Promissory Notes-Construction

Whether or not agreement for repayment of promissory note by stock of borrower or cash specified it, repayment by stock would have to be with stock of cash or book value equal to that owed, not par value.

4. Contracts-Usury

Promissory note for $5,000 loan, providing for payment of 15% interest in 12 equal monthly installments ($750 total interest) was usurious where statute allowed maximum of one percent per month on the balance due, which amounted to $500 for the loan in question. (33 TTC § 251)

Assessor:	MORRIS JALLY, Associate Judge,
		District Court
Counsel for Plaintiff :	PRO SE
Counsel for Defendant

Lagoon Aviation:

Jerry Kramer :

Counsel for Defendant

JERRY KRAMER

PRO SE

TURNER, Associate Justice