Show CONTRACT I UNCONSCIONABLE Supreme Court Rebukes Colo Cob Colorado Colorado rado Loan Cos Coos Methods in Dealing with G T Ensign METHODS ARE RAPACIOUS R DECISION OF LOWER COURT UP UPHOLDING UPHOLDING UPHOLDING HOLDING CONTRACT REVERSED An unconscionable contract says the supreme court in an opinion yester yesterday yesterday yesterday day which involved a transaction be between between tween George GeQrge T Ensign and the Colo Cots Colorado Colorado rado company re respondent respond spond nt The opinion was written by Chief Justice and amI is concurred In n by the associate Justices Ensign a member of the building and loan oan association applied for a loan loon of 1000 The association arranged with the Deseret National bank batik to let him have and loaned him itself taking a mortgage on real estate of the value alue with proposed buildings of or He Ha executed a note to the association of or 1000 though he only owed it and gave a first mortgage to the bank and a second to the association The note to the bank was payable In three thrE years at 7 per cent and that to the as association for 1000 in months at 6 per cent per annum and 30 cents on every thereof The association agreed with Ensign but not with the bank to pay principal and interest of the banks note Dote if I Ensign paid the as association association association the amount The association also required the borrower borro r to take out outa a policy of life Insurance i This was In November 1901 In De Dc December December cember comber 1905 1503 he be had paid the association association association tion and then asked for a state statement statement statement ment of or his account He lie was then in informed Informed Informed formed that he still sUIl owed the bank the entire principal of and interest and that he owed the association 6 S Of the amounts the association received it applied to payment of or Interest to the bank and to life lICo Insurance premiums The balance of it had dad received was retained and applied to many things under the contract so that it claimed there was still due I At this was computed It would take fifty years to wipe out the debt and he ha would have paid on the principal and In interest Ensign brought suit against the asso association association elation claiming that he lad had overpaid on the actual loan The association a socia tion admitted the payments but rolled relied on the contract which contained many things for which the money was to be paid out that had been overlooked by Ensign A verdict in favor of the loan association was rendered Tn in in Judge T TD TD TD D Lewis division of the Third district court and this the supreme court re reverses reverses reverses verses and remands the case to the lower court for a new trial We Ve cannot sanction such a conclusion conclusion sion slon or ruling said the opinion for Cor forwe Core we te e are of the that such a con contract contract contract tract Is unconscionable |