NV One, LLC v. Potomac Realty Capital, LLC
Supreme Court of Rhode Island
84 A.3d 800 (2014)
NV One, LLC (plaintiff) borrowed $1.8 million from Potomac Realty Capital, LLC (PRC) (defendant) to renovate a post office in Rhode Island. NV One signed a note and mortgage in exchange for the loan. The note and mortgage included a maximum-interest provision, known as a usury savings clause. The clause stated that PRC intended to comply with the state’s 21 percent interest-rate law and that any payments received in excess of the highest acceptable rate would be applied to future payments or refunded to NV One at expiration of the loan. Two years later, PRC sent NV One a notice of default for failing to complete construction on time. NV One sued PRC for violating the usury statute. PRC asserted that the maximum-interest provision in the note and mortgage saved PRC from liability for usury. The trial court held that PRC violated the state usury statute, the usury savings clause was unenforceable, and the loan was usurious and void. PRC appealed.
Rule of Law
Holding and Reasoning (Suttell, C.J.)
What to do next…
Unlock this case brief with a free (no-commitment) trial membership of Quimbee.
You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 725,000 law students since 2011. Some law schools—such as Yale, Berkeley, and Northwestern—even subscribe directly to Quimbee for all their law students.Unlock this case briefRead our student testimonials
Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.
Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.Learn about our approachRead more about Quimbee
Here's why 725,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 45,600 briefs, keyed to 983 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.