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MACK FINANCIAL CORP. v. IRESON

No. 85-2174.

789 F.2d 1083 (1986)

MACK FINANCIAL CORPORATION, Appellee, v. Dianna Marshall IRESON, Virginia Bankers Associations, Appellant. Amicus Curiae.

United States Court of Appeals, Fourth Circuit.

Decided May 8, 1986.

Attorney(s) appearing for the Case

Robert T. Copeland (Copeland, Molinary & Bieger, on brief), for appellant.

(Stephen M. Hodges; Penn, Stuart, Eskridge & Jones, on brief), for appellee.

(John W. Edmonds, III, George B. Wickham, Mays, Valentine, Davenport & Moore, on brief), for amicus curiae.

Before WINTER, Chief Judge, and MURNAGHAN and ERVIN, Circuit Judges.

PER CURIAM:

Upon confirmation of her plan of reorganization, plaintiff undertook to refinance the purchase of a coal truck with respect to which defendant was the lender. The lender insisted upon the payment of a late charge in the defaulted obligation. Plaintiff paid the late charge and then sued to recover it.

The bankruptcy court, 48 B.R. 711, ruling that late charges were penalties and not collectible, gave judgment for...

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