Rescission

First Circuit Permits Insurer to Retain Policy Premiums Despite Rescission

by Aaron Mandel | Sedgwick LLP on 5/16/2013

Courts often require insurers to return premiums (or at least offer to return them) when rescinding an insurance policy. Some states may even require it under statute. The reason is that rescission is an equitable remedy...more

Court Adheres to Specific Definition of “Designated Premises”; Holds Policy Cancellation Does Not Preclude Rescission

by Daniel Bryer | Sedgwick LLP on 5/13/2013

In Seneca Ins. Co. v. Cimran Co., — N.Y.S.2d –, 2013 WL 1405231 (App. Div. 1st Dep’t 2013), the New York appeals court granted the insurer’s motion for summary judgment, declaring that it had no duty to defend and indemnify...more

Closing Protection Letters: Overlooked Indemnity Coverage For Common Foreclosure Defense Claims

by Joanne Davies, Randall Manvitz | Buchalter Nemer on 4/25/2013

Mortgage lenders are all too familiar with borrowers’ assertions that they did not receive two properly dated copies of the Truth-In-Lending Act (“TILA”) mandated Notice of Right to Cancel form (“NORTC”) at closing. Under...more

Seventh Circuit Decision in Koransky Bouwer Enforces Professional Liability Reporting Requirements

by Abby Sher | Cozen O'Connor on 4/24/2013

Earlier this month, the 7th Circuit affirmed a district court order that held an insurer properly denied coverage to the insured law firm based on its failure to comply with the reporting requirements under its claims-made...more

New York Appellate Court Rejects MBIA’s Pursuit of Rescissory Damages

by Orrick - Structured Finance Group on 4/10/2013

On April 2, New York’s First Department appellate court ruled that MBIA Insurance Corporation may not obtain rescissory damages in its breach of contract action against Countrywide because MBIA had freely given up its right...more

Federal Court Sides With Second DCA In Privity Split

by Keith Paul Bishop | Allen Matkins Leck Gamble Mallory & Natsis... on 4/2/2013

In Moss v. Kroner, 197 Cal. App. 4th 860 (2011), the Second District Court of Appeal found that rescission was available to a plaintiff under Corporations Code Section 25504 even though the plaintiff was not in privity with...more

Sherzer v. Homestar Mortgage Services: The Third Circuit Takes Sides in a Circuit Split Over How a Borrower Exercises Rescission...

by Christopher Hart, Stephen J. Shapiro | Schnader Harrison Segal & Lewis LLP on 3/18/2013

In a recent decision, the Third Circuit took sides in a split between U.S. Circuit Courts of Appeal over what action borrowers must take to exercise their right to rescind a loan under the Truth in Lending Act (TILA). It...more

Federal Court Holds Borrowers Must Allege Sufficient Basis To Exercise TILA Three-Year Right Of Rescission

by BuckleySandler LLP on 3/13/2013

On February 28, 2013, the U.S. Court of Appeals for the Fourth Circuit held that a borrower failed to state sufficient facts to avail herself of TILA’s extended three-year right to rescind her mortgage. Wolf v. Federal Nat’l...more

Don’t Miss The Boat On Rescission Claims

by Kristin Suga Heres | Zelle Hofmann Voelbel & Mason LLP on 3/6/2013

Originally published in Insurance Law360 on March 5, 2013. As victims of Superstorm Sandy and their insurers continue to comb through their losses and their insurance policies, it is likely that the underwriting...more

Court Confirms That S. 130 Of The Ontario Securities Act Applies Only To Primary Market Purchasers

by Michael Beeforth | Dentons on 2/22/2013

In the recent decision of Tucci v. Smart Technologies Inc. (2013 ONSC 802), Justice Perell confirmed that the statutory cause of action for misrepresentation in a prospectus (set out in s. 130(1) of the Ontario Securities...more

California Supreme Court Eases Admissibility of Oral Statements in Contract Fraud Disputes

by Melissa Lor | Schnader Harrison Segal & Lewis LLP on 2/22/2013

California, like most jurisdictions, prohibits parties to integrated contracts from introducing “parol evidence” — this is, evidence of prior written or verbal agreements made by a party to a contract — if those alleged...more

Promises to Keep—Lender Beware: California Supreme Court Expands Parol Evidence Fraud Exception

by Craig A. Barbarosh, Jennifer Brooks, Karen B. Dine | Katten Muchin Rosenman LLP on 2/21/2013

In 1935, the California Supreme Court in Bank of America National Trust and Savings Ass’n v. Pendergrass prohibited a borrower from introducing external or parol evidence to demonstrate fraud in connection with an agreement...more

Misrepresentation Law and Insurance Coverage In South Carolina

by Stephen Groves | Nexsen Pruet, PLLC on 2/13/2013

1. The Claim - An insurer may use the alleged misrepresentations and/or omissions of an insured in the life, health and disability insurance application process in two ways: (i) affirmatively, by seeking rescission of...more

Third Circuit TILA rescission decision adopts CFPB position

by Martin Bryce, Jr. | Ballard Spahr LLP on 2/8/2013

The Third Circuit has now joined the Fourth Circuit in ruling that a lawsuit seeking rescission filed more than there years after loan consummation is timely as long as the borrower sent a written notice of rescission within...more

Borrower Can Sue After Three Years to Rescind Mortgage Loan, 3rd Circuit Rules

by Richard J. Andreano, Jr., Martin Bryce, Jr., Alan S. Kaplinsky, John D. Socknat, Michael S. Waldron | Ballard Spahr LLP on 2/7/2013

A borrower can bring a lawsuit seeking rescission more than three years after loan consummation as long as the borrower has sent a written notice of rescission within the three-year period, the U.S. Court of Appeals for the...more

Board Of Contributors: Recent Rulings On Condo Contracts Have Widespread Significance

by Martin Schwartz | Bilzin Sumberg Baena Price & Axelrod LLP on 1/11/2013

The Interstate Land Sales Full Disclosure Act, a federal statute that was initially designed to prevent unscrupulous land sales of desert land in Arizona and marsh land in Florida, has been one of the primary weapons employed...more

Condominium Purchaser’s Cancellation Rights Under Florida Statute Section 718.503

by Neha Dagley | Schecter Law on 1/11/2013

Florida Statute section 718.503(1)(a)1. states, in relevant part, that a contract for the sale of a residential unit must...more

Patton Boggs Reinsurance Newsletter - December 2012: New Jersey Federal Court Grants Partial Summary Judgment to Retrocedent, But...

by Patton Boggs LLP on 12/31/2012

Munich Reinsurance Am., Inc. v. Am. Nat’l Ins. Co., No. 09:6435, 2012 WL 4475589 (D. N.J. Sept. 28, 2012). In a complicated retrocessional dispute, the New Jersey federal court granted in part and denied in part the...more

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