Justia Consumer Law Opinion SummariesArticles Posted in U.S. 8th Circuit Court of Appeals
Bank of America v. Peterson, et al.
Defendants appealed the district court's order granting Bank of America's motion for summary judgment on their counterclaims for rescission and statutory damages under the Truth in Lending Act (TILA), 15 U.S.C. 1601 et seq. The court concluded that the district court did not err in determining that defendants' right to rescission had expired and that their rescission claim was time-barred under section 1635 because defendants notified Bank of America of their intent to rescind but failed to file a lawsuit within the three-year period. The court concluded, however, that defendants have offered evidence that Bank of America failed to deliver the TILA disclosures and notices. Therefore, there was a genuine issue of material fact regarding the failure to deliver the required documents. Accordingly, the court affirmed the grant of summary judgment to Bank of America on defendants' counterclaim for rescission; vacated the grant of summary judgment to Bank of America on defendants' counterclaim for statutory damages; and remanded for further proceedings. View "Bank of America v. Peterson, et al." on Justia Law
Washington, et al. v. Countrywide Home Loans, Inc.
Plaintiffs filed suit against Countrywide, alleging violation of the Missouri Second Mortgage Loan Act (MSMLA), 516.231 to 408.241 RSMo. On appeal, plaintiffs challenged the district court's dismissal of their claims as barred by the three-year statute of limitations of section 516.130(2). The court concluded that the MSMLA was subject to the three-year limitations period of section 516.130(2), not the six-year statute of limitations under section 516.420, pursuant to Rashaw v. United Consumers Credit Union. The court also concluded, under Missouri law, that the "entire damage" to plaintiffs was capable of ascertainment "in a single action" and the "continuing or repeated wrong" exception did not apply in this case. Accordingly, the court affirmed the judgment of the district court. View "Washington, et al. v. Countrywide Home Loans, Inc." on Justia Law
United States v. Ashcraft
Defendant appealed the district court's order denying her objection to the garnishment of her disability payments. The court concluded that defendant's disability payments were "earnings" within the meaning of the Consumer Credit Protection Act, 15 U.S.C. 1673(a), and were subject to the Act's limitations on garnishment. Accordingly, the court reversed the district court's judgment holding otherwise. View "United States v. Ashcraft" on Justia Law
Jesinoski, et al. v. Countrywide Home Loans, Inc., et al.
Mortgagors appealed the district court's grant of judgment on the pleadings to their lenders in a dispute regarding a home loan. At issue on appeal was whether mailing a notice of rescission within three years of consummating a loan was sufficient to "exercise" the right to rescind a loan transaction under 15 U.S.C. 1635(a) or, alternatively, whether a party seeking to rescind the transaction was required to file a lawsuit within the three-year statutory period. The court held that a party seeking to rescind a loan transaction must file suit within three years of consummating the loan. Accordingly, the court affirmed the district court's judgment on the pleadings in favor of the lenders. View "Jesinoski, et al. v. Countrywide Home Loans, Inc., et al." on Justia Law
CMH Homes, Inc., et al. v. Goodner, et al.
Plaintiffs filed a putative class action suit against CMH Homes, Vanderbilt and others in state court. The companies subsequently filed a petition in the district court alleging that plaintiffs' claims were subject to mandatory arbitration. The district court dismissed the petition. The companies argued that the district court erred by concluding that it lacked diversity jurisdiction. The court concluded that the district court correctly reasoned that Vaden undermined Advance America and required the court's departure from that precedent. Following the Vaden approach, the district court properly looked through the arbitration petition to the state court complaint to determine the amount in controversy. Nonetheless, the court remanded for the district court to calculate an amount in controversy and to determine on that basis whether it had jurisdiction over the putative class action under 28 U.S.C. 1332(d)(2). View "CMH Homes, Inc., et al. v. Goodner, et al." on Justia Law
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
Charvat v. Mutual First Fed. Credit Union
Plaintiff filed putative class actions under the Electronic Fund Transfer Act (EFTA), 15 U.S.C. 1693, alleging that Mutual First and First National violated the Act because defendants' ATM machines did not have "on machine" notice of a transaction fee. The district court dismissed for lack of standing. The court concluded, however, that plaintiff's claim of statutory damages was sufficiently related to his injury to confer standing where defendants did not provide him with the required "on machine" notice and then charged him a prohibited fee following an ATM transaction that he initiated and completed. Further, plaintiff's injury was fairly traceable to defendants' conduct where, if defendants had not violated the Act's notice requirement, plaintiff would not have been forced to choose between engaging in a transaction without the required notice and walking away. Accordingly, the court reversed and remanded for further proceedings. View "Charvat v. Mutual First Fed. Credit Union" on Justia Law
Keiran, et al. v. Home Capital, Inc., et al.
Plaintiffs in these consolidated appeals brought claims under the Truth in Lending Act (TILA), 15 U.S.C. 1601 et seq., related to their mortgage transactions. The court held that to accomplish rescission within the meaning of section 1635(f), the obligor must file a rescission action in court. Because neither plaintiffs accomplished rescission in this way within three years of their respective transactions, their right to rescind expired and the district court correctly entered summary judgment on these claims. Further, plaintiffs were not entitled, as a matter of law, to money damages for the banks' refusal to rescind, although their claim was cognizable, where the violation - that each set of plaintiffs were given one, rather than two TILA disclosures - was not facially apparent on the loan documents as set forth in section 1641. View "Keiran, et al. v. Home Capital, Inc., et al." on Justia Law
Badrawi v. Wells Fargo Home Mortgage
Plaintiff filed suit against Wells Fargo, alleging that Wells Fargo violated Minn. Stat. 580.032, subd. 3 by failing to record a notice of pendency of foreclosure before publishing the foreclosure notice. The court affirmed the district court's grant of Wells Fargo's motion to dismiss, concluding that the statute did not provide plaintiff with relief in this case because there was no dispute that Wells Fargo properly served plaintiff with notice in compliance with Minn. Stat. 580.03 and, since she received personal service of the foreclosure notice, she could not have been among those for whose benefit the separate notice requirement of Minn. Stat. 580.032, subd. 3 was enacted. View "Badrawi v. Wells Fargo Home Mortgage" on Justia Law
Raskas, et al. v. Johnson & Johnson, et al.
Plaintiffs filed three separate class action suits alleging that defendants violated Missouri law and conspired with unknown third parties to deceive customers into throwing away medications after their expiration dates, knowing that the medications were safe and effective beyond the expiration date. Defendants appealed the district court's remand order holding that defendants failed to establish the amount in controversy requirement under the Class Action Fairness Act (CAFA), 28 U.S.C. 1332(d)(2). The court concluded that each defendant's affidavit detailing the total sales of their respective medications in Missouri met the amount in controversy requirement; even if it was highly improbable that plaintiffs would recover the amounts defendants have put into controversy, this did not meet the legally impossible standard; defendants were not required to provide a formula or methodology for calculating the potential damages more accurately, as the district court held; and defendants' affidavits were not inadmissible hearsay. Therefore, the court reversed the district court's finding that it lacked subject matter jurisdiction and remanded for further proceedings. View "Raskas, et al. v. Johnson & Johnson, et al." on Justia Law