Arkansas Supreme Court Affirms Certification in Win in Class-Action Usury Case
The Arkansas Supreme Court affirmed Hempstead County Circuit Judge Duncan Culpepper's grant of class certification in Johnson's Sales Company, Inc., et al. v. Wanda Harris, et al., No. 2006-1237. The Allen Law Firm serves as class counsel.
Harris is a class-action usury case against a group of corporations that own and operate Johnson's Warehouse Showroom in several Arkansas communities. The case alleges that Johnson's customers were charged usurious rates of interest. The customers signed Purchase Agreements that state, on their face, an "Annual Percentage Rate" greater than the applicable maximum rate of interest at the time the agreement was signed.
The opinion, written by Justice Corbin, rejects Johnson's arguments that "the circuit court abused its discretion in finding that the Rule 23 requirements of (1) commonality, (2) predominance, and (3) superiority were met."
The Court rejected Johnson's arguments that the Purchase Agreements at issue should be characterized as "retail installment contracts with pre-computed interest" and as such, the "true" interest rate charged depended on the history of payments under the note.
Justice Glaze wrote a dissenting opinion, which Chief Justice Hannah joined.
