Jesinoski v. Countrywide Home Loans, Inc.
135 S. Ct. 790
| SCOTUS | 2015Background
- Petitioners refinanced their home loan from Countrywide in Feb. 2007 for $611,000.
- Three years later, petitioners mailed a rescission notice claiming they exercised TILA rights.
- Bank of America Home Loans responded, declining to acknowledge rescission.
- Petitioners filed suit in Feb. 2011 seeking declaration of rescission and damages.
- District court granted judgment for respondents, holding TILA rescission must be pursued by suit within three years; Eighth Circuit affirmed.
- Supreme Court reversed, holding notice within three-year window suffices to rescind under §1635(a).
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether rescission right is exercised by notice or by filing suit | Jesinoski: notice suffices within 3 years | Countrywide/BoA: suit required within 3 years | Notice within 3 years suffices; suit not required within period |
Key Cases Cited
- Beach v. Ocwen Fed. Bank, 523 U.S. 410 (1998) (life of the right to rescind governs timing)
- Astoria Fed. Sav. & Loan Assn. v. Solimino, 501 U.S. 104 (1991) (rescindment timing and statutory interpretation)
- Keiran v. Home Capital, Inc., 720 F.3d 721 (8th Cir. 2013) (earlier panel held §1635(f) extinguishes right if no suit within 3 years)