Cook

Roy A. and Virginia A. Cook (Cook) appeal from a judgment reforming a promissory note evidencing a $55,000 loan from Kenneth and Evelyn Stewart (Stewart) by deleting a compound interest provision which made the note usurious.

Stated in the light most favorable to respondents Stewart and First American Title Insurance & Trust Company (First American) the evidence discloses: Cook wanted to borrow money from Stewart. Both parties were experienced in real estate and loan transactions, and both were represented by experienced brokers. The two brokers opened a loan escrow at First American on January 26, 1966. The escrow instructions, signed later the same day by the two parties, provided in part as follows:

The instructions also provided the note was to be secured by real property located in San Diego County and required Stewart to pay the $55,000 into escrow on or before January 31, 1966. Cook was to receive the money upon execution of the note and deed of trust, and when American could issue its policy of title insurance showing title to the land securing the loan vested in Cook.

First American used a printed form of promissory note, inadvertently using a form containing…