Texas Supreme Court
First State Bank of Bedford, Texas, Petitioner v. MacIle Miller
March 1, 197821 Tex. Sup. Ct. J. 236
Summary
The Texas Supreme Court affirmed the Court of Civil Appeals' judgment, holding that the borrower received only $56,000 of the loan and that the $21,000 interest was usurious, so the bank could not recover the interest payments and the appellate court's award of $14,000 of interest paid was reversed. The Court also clarified that penalties are limited to twice the usurious interest and that unpleaded causes of action cannot be awarded. Justice Johnson dissented, arguing that the statute should permit recovery of interest actually paid.