On February 23, 2007, Larry and Cheryle Jesinoski borrowed $611,000 from Countrywide Home Loans, Inc. pursuant to the refinance of their home mortgage. On February 23, 2010, the Jesinoskis mailed Countrywide a letter notifying that they were rescinding the loan pursuant to their rights under the under the Truth in Lending Act ("TILA"), 15 U.S.C. Sec. 1635.
On March 12, 2010, Bank of America Home Loans (which had acquired Countrywide) replied to the Jesinoksis that it was refusing to acknowledge the validity of their attempted rescission.
On February 24, 2011, the Jesinoskis filed suit in Federal District Court of Minnesota seeking a declaration of rescission and damages. The District Court granted judgment on the pleadings to the respondents based upon the court's finding that under the terms of TILA, a borrower seeking rescission was obligated to file a lawsuit within three years' of the consummation of the subject loan. Thereafter, the Eighth Circuit affirmed. Jesinoski v. Countrywide et. al (United States Court of Appeal for the Eighth Circuit, 12-2202, September 10, 2013).
In an Opinion by Justice Scalia, the United States Supreme Court reversed and remanded the Eighth Circuit by holding that a borrower exercising his right to rescind under TILA need only provide written notice to his lender within the 3-year period, and need not file a lawsuit within that period. Larry D. Jesinoski, et Ux., Petitioners v. Countrywide Home Loans, Inc., et al. (US Supreme Court,13-684, January 13, 2015, 574 U.S. ___ (2015).
Audio of November 4, 2014, Oral Argument
Written Transcript of November 4, 2014 Oral Argument