George Jue v. Irving I. Bass, Trustee

On September 19,1958, in Los Angeles, California, George Jue lent $15,000 to Far West Engineering Company, Inc., a corporation (hereinafter referred to as Far West). The note and chattel mortgage securing this loan originally specified the amount borrowed as $18,000. Before the signing, this $18,000 figure was changed to $15,000. Interest was payable at ten per cent, the highest legal rate in California.

Mr. Bamberger, president of Far West, testified that the amount of loan originally discussed with Jue on or about September 1st, was $25,000 for which Jue asked the corporation to sign a note for $30,000, the difference to be an “extra bonus.” He also testified that on September 19, 1958, Jue wanted to lend only $15,000, but offered to lend $18,000 if $3,-000 was returned immediately by Far West. Bamberger declined this as usurious, but suggested that Jue be paid $100 per week “for consulting engineering services.” Nineteen weekly voucher checks of $100 each were paid to Jue by Far West, commencing September 29, 1958, and continuing to February 2, 1959; each bearing the notation “Engineering Consulting Services.” It was admitted by the pleadings Jue performed no services of any…