OCR Text |
Show 6monday, 1977 Payments Continued from page 1 loans with them depending on just what kind of a resolution the courts finally come up with. and was zapped a 5 percent Well, you rotten charge. sons of guns, he thought. Here they were charging him Request money back interest for being a lousy two days late and at the same time Madsen had no notion he was going to sue some five years ago when he noticed that over $800 remained in an escrow account after Prudential had paid his annual tax and insurance bills. He asked the s&l about it and was told all he had to do was make a request and theyd send him some money back. He did and they did. The very next month, Madsen happened to be two days late with his payment holding his money having free use of it for short-terinvestments and not paying him any of the interest earned. The next year Prudential had another surplus in his escrow account. This time it was $400. It happened again the year after that, and Madsen never felt he got an adequate explanation from Prudential about what was going on. Then one day he got to talking the matter over with his attorney friend Bob De- m Work on $15 million retirement center begins Construction of a $15 million retirement living center, the first in Utah, began last week at 3736 Highland Dr. Completion of the Golden Living Retirement park is scheduled by late 1979. Phase one of the project, a $4 million, 30,000 square foot retirement center, should be finished by 1978, according by Vaughn Pulsipher, president of Golden Living Center. In addition to the retirement, center, the complex will include a 20,000 square foot nursing home and an ndominium project to apartment-co- accommodate 300 retired people. Pulsipher claims three years of marketing research show that Salt Lake is ready Data for the living center. supplied the Center by the National Institute of Aging showed that 12 percent of the U.S. population is over 65 By 1990, years of age. however, the Institute expects 60 percent of the population to be 50 or older. By comparison, the Institute points out that only 4 million Americans were above 65 in 1900. Today there are 23 million who are 65 and older, and 9 million of those are 75 or above. Pulsipher expects to attract people 50 and older, since the center will offer both part and full time care facilities and provide the elderly a place to live independent of nursing home care but with adequate care available next door. Contractor for the project is Bud Bailey Construction Co. Architect is Bruce Dixon. "to Bry, and DeBry pointed out that if Madsen were mad enough about the thing, he could sue for the interest. Madsen did, and the result has been a lawsuit that could eventually involve every mortgage lending institution in the state. Substantial profits The original complaint, filed in March of 1975, was filed for Madsen and all the others who had taken out similar loans from Prudential. It alleged that Prudential earns substantial profits from short-terinvestment of all the tax and insurance money it holds prior to payment and implied terms of each trust m agreement was that it would pay a reasonable interest on the money to its customers. Since the payments hadn't been made. Prudential was unjustly enriched. The complaint sought payment of the value of the unjust enrich- who makes such loans. The plaintiff class, of course, would be expanded to include everyone who had gotton such a mortgage. The contain that statement and would not be affected by the suit. This type of lawsuit has become popular around the country in recent years possibly because interest rates have gone up while rates on mortgages made a long time ago, like Madsen's, have obviously stayed the same. The suits elsewhere have not been courts havent yet certified the classes, a move necessary for a class action to be maintained. The original class, for that matter, hasn't got final approval either. Third District Judge Bryant H. Croft has successful. The result of the action, opted to delay deciding conceivably, could have a direct impact on every mortgage lender in the state because last July, after getting a seemingly favorable decision from the Utah Supreme Court in January, the Madsens (Dick's wife Nancy had by now joined in the action) filed an amended complaint seeking to expand the defendant class to everybody whether the case will affect a class until after the merits have been decided. That way the class members dont have to be notified yet, causing all kinds of potential problems. The word pledge One of the central issues in the case is the meaning of Continued on page nine SMASH FOREHANDS, SLICE BACKHANDS! CK ment. As you may wrell imagine, all manner of legal argument followed. The case for each side has to be gleaned from court records because a court order issued last February prevents the parties from making any communication TENNIS LESSONS ANYONE! that might affect anyone's decision on whether or not to join the plaintiff class assuming the courts decide to allow the claim to be decided q O 0 as a class action. O Terms have been changed It should be noted here that the suit concerns mortgages as they used to be written without a specific statement that such interest will not be paid. Many mortgage agreements now O o o o o o The Finest Teaching Open to Members and Utah in Non-Membe- rs Your corporation may want to SPONSOR Private and Group Lessons Available CALL TODAY FOR INFORMATION 5445 SOUTH 900 EAST SALT LAKE CITY, UTAH 84117 (801)261-342- 6 Sell Phaster with Photographs FURNACES 24 HOUR EMERGENCY SERVICE HEATING -- RADIO DISPATCHED COOLING Survy PROFESSIONAL RESIDENTIAL - SALES - SERVICE - COMMERCIAL - INDUSTRIAL HEATING & ELECTRO, INC DAY OR NIGHT WORK ON 4LL MAKES - Emiitmm - Imtaltationi PARTS 487-087-6 Photographs speak phaster than words when you only have a moment to get your story told. Next time you have to impress a client with a complicated concept, back up your word with expressive color photographs processed and printed by cAardvark&Son. PHOTOGRAPHIC LABORATORIES 423 EAST BROADWAY a time for employees! SALT LAKE CITY, UTAH B4111 145 WEST BURTON AVENUE (2360 SOUTH) For full information contact: MR. BRIAN RECORD. Professional Phototechnical Sales, 532-3395- . |