Wishnev v. the Northwestern Mutual Life Ins. Co.

Summary

The court held that the statutory requirement for a signed writing before compound interest may be charged does not apply to lenders exempt from California's constitutional usury restrictions. It reasoned that the constitutional provision's authorization to regulate exempt lenders' compensation "in any manner" encompasses compound interest and irreconcilably conflicts with the narrower statutory limitation. The court answered the Ninth Circuit's first certified question and found the second question moot.