Jesinoski v. Countrywide Home Loans
Date Filed: January 13, 2015
Case #: 13-684
Scalia, J., delivered the opinion for a unanimous Court.
Full Text Opinion: http://www.supremecourt.gov/opinions/14pdf/13-684_ba7d.pdf
Mortgage Fraud Examiners has argued and taught for years that the plain meaning of the TILA statute and Regulation Z was unambiguous that under the Truth In Lending Act a borrower only needs to give written notice to his lender within three years when the borrower chooses to rescind a loan; the borrower does not need to file a lawsuit.
In the case sub judice the petitioners refinanced a home loan by borrowing money from Respondent. Three years to the date later, Petitioners mailed notice to Respondent of their intention to rescind the loan. Respondent responded and refused to accept rescission as valid. Four years and one day after the date of the loan, Petitioners then filed suit in federal court for damages and declaration of rescission. The District Court granted judgment on the pleadings to Respondent because Petitioners had not brought a lawsuit within three years of the consummation of the loan. The Eighth Circuit affirmed in a per curiam opinion.
The Supreme Court reversed and remanded the case because it found the Eight Circuit erred in dismissing the complaint. The Court reasoned that the Truth In Lending Act required a borrower only to notify his lender of his intention of rescission within three years of the consummation of the loan, and because Petitioner did notify their lender within three years, they had satisfied the requirement of the statute.