This section contains the nature of the case and procedural background.

A note was signed by Arrospide Jr, on behalf of Arrospide Sr. as his attorney in fact. The note was in favor of Carboni (P) a licensed real estate broker. The note carried an interest rate of 200%, was due in three months and was secured by a fourth deed of trust on the residence owned by Arrospide Sr. in Daly City. The property the note secured had a value of $250,000 with existing encumbrances of $193,000. The intent was to pay off the note with $6,000 in three months. Over the next four months, P continued to make cash advances to Sr. and by five months the note with principal had ballooned to $99,346 all of it carrying a 200% interest rate. By trial, the principal and interest had accumulated to $390,000. P sued to collect. The trial court found an interest rate of 200 percent per annum for one and a half years to be unconscionable. It awarded P foreclosure and interest at a rate of 24 percent per annum. P appealed.

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