Harris

This action was brought by respondents to have a promissory note and deed of trust declared void or in the alternative reformed; to enjoin appellants from foreclosing the deed of trust; for usurious interest penalties; and for exemplary damages. The court, sitting without a jury, granted respondents the relief prayed for by declaring the note and deed of trust void, allowing treble damages under the usury laws and awarding exemplary damages.

The record discloses that respondents were interested in buying a house and got in touch with one Hunter, a real estate broker, and his salesman, Walter Johnson. Respondents told Hunter that they had only $300 for a downpayment and that this had been borrowed. Hunter showed them the home of Thaymon Holley, who wanted $1,500 for his equity, and Hunter told respondents that he could arrange for them to borrow the additional $1,200. Respondents were to assume also a first encumbrance against the property which required payments of $61 per month. Respondents told Hunter that their limited income and fixed obligations prevented them paying more than a total of $70 per month on both the first lien, which they were assuming, and the $1,200 loan.…