Consumer loan

[Kalla]

My mother and I lent a family friend money to start up a business. He was "unable" to start his business, but has an excellent employer.
He paid two payments of the loan, then refused to respond for more than 18 months.
We took it to court, asking only for what was in the contract he read and signed - accounting for the payments already made.
He has declared we come with unclean hands and refuses to pay.
Can this be countered or are we "screwed" by this "friend"?

 

[Zigner]

My mother and I lent a family friend money to start up a business. He was "unable" to start his business, but has an excellent employer.
He paid two payments of the loan, then refused to respond for more than 18 months.
We took it to court, asking only for what was in the contract he read and signed - accounting for the payments already made.
He has declared we come with unclean hands and refuses to pay.
Can this be countered or are we "screwed" by this "friend"?

1: US law only - what is the name of your US state?
2: If you already took it to court, why don't YOU tell us what ended up happening?

 

[LdiJ]

My mother and I lent a family friend money to start up a business. He was "unable" to start his business, but has an excellent employer.
He paid two payments of the loan, then refused to respond for more than 18 months.
We took it to court, asking only for what was in the contract he read and signed - accounting for the payments already made.
He has declared we come with unclean hands and refuses to pay.
Can this be countered or are we "screwed" by this "friend"?

How did he claim that your hands were "unclean". Has the judge already ruled on the case or was that merely his response?

 

[Kalla]

Georgia. The case is still open, and "unclean hands" was his only response with refusal.

 

[Zigner]

Georgia. The case is still open, and "unclean hands" was his only response with refusal.

Have you already been to court and are just waiting for the judgment? You said in your original post that you "took it to court"...please clarify.

 

[Kalla]

We are waiting for judgement. The case was presented, and countered with unclean hands. We are now waiting.

 

[Zigner]

We are waiting for judgement. The case was presented, and countered with unclean hands. We are now waiting.

Then please let us know how it turns out when you receive the judgment.

 

[Zigner]

I'm assuming this is a small claims matter.

From: http://consumer.georgia.gov/consumer-topics/magistrate-court

How does one appeal a judgment?

If either party is dissatisfied with the judgment, that party may appeal (request a review of the judgment by a higher court). Either the state court or the superior court in the county will hear the appeal, and either party may request a jury trial. Appeals must be made within 30 days from the judge’s decision. The court that hears the appeal will charge a filing fee.

 

[tranquility]

"Unclean hands" is an equitable defense. A defense that claims it would be unfair to enforce the contract because you did something wrong in enforcing or creating it. The only thing that comes to mind might be unfair terms like an interest rate that is too high or you did something to make the purpose of the loan unsuccessful. Something where you show evidence of bad faith. Since it seems you are suing as a matter of law on the contract, I am uncertain as to his theory of the defense.

 

[Kalla]

My entire question is how, when we only ask for what's in the contract, do we come with unclean hands, and how do we prove we don't? We have not been in court, it is being handled by lawyers only.

 

[Zigner]

"Unclean hands" is an equitable defense. A defense that claims it would be unfair to enforce the contract because you did something wrong in enforcing or creating it. The only thing that comes to mind might be unfair terms like an interest rate that is too high or you did something to make the purpose of the loan unsuccessful. Something where you show evidence of bad faith. Since it seems you are suing as a matter of law on the contract, I am uncertain as to his theory of the defense.

Personally, I really doubt that the only thing the defendant said during the entire hearing was "Unclean Hands" - there had to be more to it and the OP is simply not telling us.

 

[Zigner]

My entire question is how, when we only ask for what's in the contract, do we come with unclean hands, and how do we prove we don't? We have not been in court, it is being handled by lawyers only.

Your last post said the matter has already been heard and that you are awaiting the judgment. NOW you say it hasn't even been heard in court yet. In any case, you are, apparently, represented by an attorney. Speak to your attorney.

 

[Kalla]

So you're saying he has to prove it, not us?
Also, I'm looking at the transcript our attorney gave us, from when she took it to a judge. His only defense is that we come with unclean hands and therefore he owes nothing.
She told us we are now waiting.

Are we being screwed with??

 

[Zigner]

So you're saying he has to prove it, not us?
Also, I'm looking at the transcript our attorney gave us, from when she took it to a judge. His only defense is that we come with unclean hands and therefore he owes nothing.
She told us we are now waiting.

Are we being screwed with??

Please speak to your attorney - she is the one with the information you need, not us.

 

[tranquility]

So you're saying he has to prove it, not us?
Also, I'm looking at the transcript our attorney gave us, from when she took it to a judge. His only defense is that we come with unclean hands and therefore he owes nothing.
She told us we are now waiting.

Are we being screwed with??

What I'm saying is that absent facts that would have been argued long and hard, the doctrine would not normally apply to a contractual dispute where you are trying to collect as a matter of law.