Now Updating
In re Carol Engen

Summarizing by Bradley Pearce

Sheedy v. Deutsche Bank National Trust Co. (In re Sheedy)

Citation:
Sheedy v. Deutsche Bank National Trust Company et al. (In re Sheedy) 14-1246
Tag(s):
Ruling:
The Court ruled that Laura Sheedy (the "Debtor") Truth in Lending Act claim for rescission was time barred because refinancing occurred in 2004 and the Debtor did not bring a claim under TILA until the 2010 bankruptcy, beyond the three year statute of limitation for rescission when a consumer has not received required disclosures. The Court also determined that the Debtor's claim under Chapter 93A was time barred because she knew in 2004 that her husband had not received the necessary TILA disclosures. The Court decided that the Debtor could not raise a recoupment in an action to rescind a transaction because rescission is not a form of recoupment. The First Circuit upheld the judgment against the Debtor on the claims of fraud, deceit and misrepresentation because the Debtor could not establish the necessary elements in a variable rate loan where her actual payments were less than the payments projected at the time she entered into the loan. The Court upheld Judgment against the Debtor on the Debtor's objection to Deutsche Bank's secured claim because her argument on appeal was insufficient.
Procedural context:
First Circuit review of a district court's decision, which upheld the bankruptcy court's summary judgment in favor of Deutsche Bank and Chase Bank.
Facts:
The Debtor refinanced her mortgage in 2004 and obtained an adjustable rate mortgage which started with interest only payments. When the interest rate reset after five years and the Debtor needed to pay interest as well as principal, the Debtor was not able to make the payments and defaulted. The Debtor then filed for protection under Chapter 13 of the Bankruptcy Code in June of 2010 and shortly filed a plan to treat Deutsche Bank's mortgage as an unsecured claim and pay a small portion of the claim through the plan. In 2011, the Debtor filed an adversary proceeding alleging claims under TILA, Chapter 93A, fraud, deceit and misrepresentation and the Debtor objected to Deutsche Bank's secured claim.
Judge(s):
Howard, Torruella and Kayatta

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