Debtor/Creditor – Affirmed

  • Envtl. Processing Sys., LC v. Horner
    • 09-16-00197-CV, 2018 WL 915184
    • 75th District Court of Liberty County
    • Justice Horton, Feb. 15, 2018
  • Horner, a collection agent, brought suit against Environmental Processing Systems, LLC (EPS) and Stegall to collect sums owed under a renewal note. Horner obtained the notes by assignment from creditors, and then he agreed with EPS and Stegall to a renewal and extension.
  • EPS and Stegall claimed that the loans violated Chapter 305 of the Texas Finance Code, a provision that penalizes creditors who contract, charge, or receive usurious interest. After a bench trial, the trial court awarded a verdict in favor of Horner.
  • On appeal, EPS and Stegall challenged the trial court’s finding against them on the issue of usury.
  • The Ninth Court concluded that EPS and Stegall had failed to meet their burden of proof and provide legally sufficient evidence to establish the fair market value of the debt and their a claim of usury; the trial court’s judgment was affirmed.