Tri-County Federal S & L of Waldorf v. Lyle

George E Meng

Case Conclusion Date:April 5, 1977

Practice Area:Litigation

Outcome:Plaintiff Won

Description:Meng represented the Lyles in the Circuit Court, the Court of Special Appeals and the Court of Appeals. The Lyles brought suit against a Tri-County, seeking to recover usurious interest. The Circuit Court, Charles County, George W. Bowling, J., entered a judgment in favor of the Tri-County, and the Court of Special Appeals, 33 Md.App. 46, 363 A.2d 642, affirmed in part and reversed and remanded in part. On grant of certiorari, the Court of Appeals, Singley, J., held that where the agreement for the loan of $60,000 called for immediate dispersal of $15,000 and the subsequent disbursal of the remaining $45,000 as building progressed, the lender placed $45,000 in a bank account which was not an escrow account, and the borrowers rescinded their decision to construct the building prior to dispersal of the $45,000, the lender's attempt to collect interest on the entire $60,000 constituted usury; the court further held that the lender's imposition of charges for a credit report and appraisal fee was not ‘interest’ and was not usurious. Judgment of Court of Special Appeals affirmed the case remanded.