Shannon-Vail Five Inc. Shannon-The-Greens Shannon-Lake Elsinor Inc. v. Del Bunch, Jr. Ernestine L. Bunch Chicago Title Company

Plaintiffs appeal the district court’s decision that Nevada rather than California law should be applied to a claim that usurious interest rates were charged on six loans made by defendants, as well as to a conversion claim arising out of the application of a payment on one loan to an outstanding balance on another loan. Applying Nevada law, the district court found that the interest rates were permissible and that there had been no conversion.

We have jurisdiction under 28 U.S.C. § 1291 and affirm the district court on both issues.

I

Plaintiffs are three California corporations-Shannon/Vail Five, Shannon/The Greens, and Shannon/Lake Elsinore-organized and owned by Thomas P. Dobron, a real estate developer residing in Nevada. From 1993 to 1995, Dobron, acting on behalf of the Shannon companies, entered into six loan agreements for substantial sums with defendants Del Bunch, Jr. and Ernestine L. Bunch, Nevada citizens, to fund new real estate development projects in California. The loans carried a 15% per annum interest rate plus 10% paid up front. According to plaintiffs, this resulted in effective interest rates ranging from 27.12% to 81.61%. The loans were secured by trust…