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Reports of the Trust Territory of the Pacific Islands |
TRIAL DIVISION OF THE HIGH COURT
PALAU DISTRICT
Civil Action No. 235
MADRIS
Appellant
v.
ILAB
Appellee
November 16, 1962
Action by owner of house against builder, in which owner contends that price paid for house was excessive, work was poorly performed, and that interest paid on money advanced by builder was usurious. The Palau District Court held that all matters in controversy between the parties concerning house were settled and determined at traditional ocheraol. On appeal, the Trial Division of the High Court, Chief Justice E. P. Furber, held that according to Palau customary law, all issues in dispute were settled, but that interest paid by plaintiff was usurious and excess must be returned by defendant to plaintiff.
Modified in part and affirmed in part.
1. Palau Custom-"Ocheraol"
Mere fact that policeman accompanies builder of house to traditional Palauan ocheraol does not put owner of house under duress to. Agree to higher payment for house than he would have otherwise.
2. Palau Custom-"Ocheraol"
Under Palau custom, payment by owner of house to builder of sum of money agreed upon at ocheraol, and return of part of sum by builder to owner as sign of satisfaction with payment, customarily concludes all issues in dispute.
3. Equity-Generally
Generally speaking, only grounds on which suit can be maintained to recover money paid are fraud, mistake or duress.
4. Courts-Settlements
Executed agreements of settlement, concluding relations of parties and based upon valid and adequate consideration, honest differences, and good faith, are binding upon parties.
5. Contracts-Usury
In Palau, any party injured as result of usury may recover from payee, upon proof of usury before competent court, amount of usurious interest actually paid. (Palau Congress Resolution 38-59)
6. Statutes-Construction
In interpreting remedial statutes, special effort is made to avoid technical construction of language used and to give fair construction so as to promote justice in interests of the public good.
7. Contracts-Usury
Where interest collected by party in Palau exceeds maximum limit of twenty-two percent, part of interest is usurious. (Palau Congress Resolution 38-59)
8. Contracts-Usury
In Palau, interest in excess of twenty-two percent per annum may be recovered by one who pays it in action brought within two years of date of payment. (Palau Congress Resolution 38-59)
9. Contracts-Usury
Voluntary taking or reservation of more than legal rate of interest is per se usurious, despite lack of intent to violate law.
