Westside Health and Raquet Club, Inc., v. Jefferson Financial Services, Inc.

Westside Health & Racquet Club, Inc. (“Westside”) filed this action against Jefferson Financial Services, Inc. (“ Jefferson”). Westside’s theory of its claim -- which theory was adopted by the trial court -- is that Westside’s transfer to Jefferson, over time, of some 495 installment sales
contracts was, in each case, part and parcel of a usurious loan made by Jefferson to Westside, rather than a sale of the contract. The trial court awarded Westside damages of $68,519.71 for usurious interest, which was enhanced by a further award of pre-judgment interest pursuant to T.C.A. § 47-14-123 (1995)1. Jefferson appeals, raising several issues. The issue that we will focus on can be stated thusly: Does the Retail Installment Sales Act, T.C.A. § 47-11-101, et seq., (“ the Act”) operate to exempt the dealings between these parties from Tennessee’s usury statutes?