Facts
On 25 or 26 January 1965, Alois Schönbächler in Winterthur accepted a bill of exchange drawn by Rolf Lienhard for CHF 150,000, payable on 20 July 1965. The bill of exchange claim was based on a loan granted by Lienhard, which was agreed and handed over in Winterthur. On 24 or 31 March 1965, Schönbächler in Winterthur accepted another bill of exchange issued by Lienhard for CHF 150,000, payable on 31 August 1965, which was also based on a loan agreed in Winterthur.
Schönbächler filed a claim with the District Court of Lucerne-Land for the denial of the claim for CHF 151,343.50 plus 6% interest since 5 August 1965. The District Court partially upheld the claim, and the High Court of the Canton of Lucerne further divided the claim. Schönbächler appealed the judgment of the High Court to the Federal Supreme Court.
Considerations
The Federal Supreme Court examined whether the lower court had correctly applied Art. 20 CO. It concluded that the agreed interest rate of 26% violates good morals and is therefore partially null and void. However, a complete nullity of the loan…