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FIRST USA MANAGEMENT, INC. v. ESMOND

No. 95-1254.

960 S.W.2d 625 (1997)

FIRST USA MANAGEMENT, INC., Petitioner, v. Dale ESMOND, Respondent.

Supreme Court of Texas.

Decided June 6, 1997.

Rehearing Overruled December 4, 1997.

Attorney(s) appearing for the Case

Robert Powell, Linda Jene Burgess, Michael S. Truesdale, Austin, for Petitioner.

James A. Ellis, Jr., Rebecca Adams Cavner, Jeffrey A. Lane, Ray D. Weston, Dallas, for Respondent.

HECHT, Justice, delivered the opinion of the Court.

The principal question in this case is whether an employer contracts for, charges, or receives usurious interest on a loan to an employee by obtaining and exercising the right to terminate the employee's employment contract and to discontinue contractual salary payments when the employee defaults on the loan. The district court answered yes, granting the employee's motion for summary judgment and denying the employer...

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