Hartman, et al. v. Smith, et al.

Plaintiffs filed suit against defendants alleging claims under, inter alia, the Truth in Lending Act (TILA), as amended by the Home Ownership Equity Protection Act, 15 U.S.C. 1602 et seq. Defendants are persons and entities involved in the transactions related to the financing of an addition to a house on plaintiffs' property. The court recently joined the Ninth and Tenth Circuits in holding that notice was not sufficient to exercise the right of rescission. In this instance, the court concluded that the district court erred in finding that plaintiffs' notice was sufficient to exercise the right of rescission under section 1635 of TILA. Therefore, plaintiffs' right of rescission expired upon the sale of the property. Accordingly, the court reversed the district court's finding that plaintiffs' notice was sufficient to exercise the TILA statutory right of rescission. The court affirmed, however, the district court's grant of summary judgment, the dismissal of plaintiffs' claims, and the dismissal of the Hartmans as parties to the case. View "Hartman, et al. v. Smith, et al." on Justia Law