Levy

Plaintiff, appellant and respondent JCC Development Corp. (JCCDC) owed monies to defendant, respondent and appellant Hyman Levy under a promissory note. JCCDC paid, under protest, the amounts Levy demanded under the note. Then JCCDC sued Levy, claiming that Levy had overcharged JCCDC in interest and attorney fees purportedly incurred to collect on the note. The matter proceeded to judgment after a court trial, and Levy was deemed the prevailing party.

The trial court rejected JCCDC’s claim that Levy was not entitled to collect interest under the note at the default rate (11.25 percent) after the note matured because Levy had not exercised his option to implement the default interest rate. The court agreed with Levy that the default interest rate automatically was triggered at the time the note matured, without a requirement that Levy notify JCCDC that he was exercising his option to implement the default rate. The court also rejected JCCDC’s claims that Levy waived the right to implement the default interest rate and that Levy was estopped from asserting implementation of the default rate.

On appeal, JCCDC challenges the trial court’s interpretation of the default…