Gladys F. Vaughn v. George E. Vaughn

Gladys F. Vaughn, plaintiff-respondent, instituted this action on a promissory note, alleging its execution in her favor and delivery to her by George E. Vaughn, defendant-appellant, in the face amount of $3,000, payable monthly on the 1st of each month in installments of $50 each. The note also provided that ""all installments of principal shall bear interest at the rate of 6% from the due date thereof * * *,"" and also contained an acceleration clause which provided in event of non-payment on the due date of any installment, the maker pay reasonable attorneys' fees in case of action for its collection. Plaintiff alleged that only $75 principal payments had been made; that she had retained an attorney to represent her; that she had agreed to pay a reasonable attorney's fee, and she prayed for judgment for balance owing, with reasonable attorney's fee. By his answer, defendant alleged nondelivery of the note and that it was barred by the statute of limitations. As affirmative defenses he alleged that the note was obtained by coercion, duress and fraud; he also alleged lack of consideration for the note. The trial court found against defendant and entered judgment for plaintiff in the amount of $3,593.81, principal and interest, plus $1000 attorney's fees, from which judgment this appeal was perfected.