Stoneridge Parkway Partners, LLC v. MW Housing Partners III, L.P.

A real property developer and borrower of money sued its lender, claiming the interest charged on the secured loan was usurious. The trial court awarded summary judgment to the lender, ruling the loan was exempt from the constitutional usury prohibition because it was negotiated and arranged by a licensed real estate broker. The developer argues the secured loan was not exempt because the broker was in effect the lender and was negotiating on its own behalf. We disagree and affirm the judgment because the broker, although an employee of an affiliate of the lender, acted as a third party intermediary and did not negotiate the loan on his own behalf.

FACTS

Plaintiff Stoneridge Parkway Partners, LLC (Stoneridge), acquired real property in two phases. It borrowed $1,410,000 from WRI Investments HI LLC (WRI Investments) to purchase the first phase. This loan is referred to as Stoneridge I. It is not the subject of this action. The Stoneridge I loan documents stated the loan was “made and/or arranged by WRI Investments . . . .”

To acquire the remaining phase, Stoneridge borrowed $3,366,840 from defendant MW Housing Partners III, L.P. (Housing Partners). This loan is referred…