A Massachusetts federal court granted summary judgment to First Horizon in the McKenna Truth in Lending rescission case. Following the First Circuit’s reversal of certification of a declaratory rescission class last year, as reported in the April 10, 2007 Alert, the trial court concluded on the merits that First Horizon’s “hybrid” rescission form (which combined rescission information from the FRB model forms for same lender and new lender refinancings), was not confusing and, therefore, did not violate TILA and its Massachusetts counterpart. Acknowledging its differences with the Seventh Circuit, the court concluded that a hyper‑technical reading of TILA was inappropriate, and that First Horizon’s notice was objectively not confusing; while not perfect, the notice clearly and conspicuously disclosed the effects of rescission. Goodwin Procter partners Tom Hefferon and Gwyn Williams represented First Horizon. Click here for a copy of McKenna v. First Horizon Home Loans Corp., C.A. No. 04-10370-PBS (D. Mass. Mar. 3, 2008).
Alert March 11, 2008