October 10, 2026

Usury as a defense

Practice point:  Establishing that there was a loan. is a necessary element of a defense sounding in usury. 

Application:  Defendants failed to establish that the underlying agreement was a loan, in failing to demonstrate, among other things, that the agreement had a finite term.

Kapitus Servicing, Inc. vs. Southern Source, Inc., NY Slip Op 05855 (1st Dep't October 8, 2026) 

 Here is the decision.