Deutsche Bank National Trust Company, as Trustee, in Trust for the Registered Holders of Ameriquest Mortgage Securities Inc., Asset-Backed Pass-Through Certificates, Series 2006-R2 v. Donald P. Pelletier et al.

Summary

The Supreme Judicial Court of Maine affirmed summary judgment granting Donald and Kim Pelletier rescission of a refinanced mortgage transaction under the federal and Maine Truth-in-Lending Acts. The court held that the borrowers rebutted the presumption that required notices and disclosures had been delivered and timely exercised their rescission right. The case was remanded for further proceedings to determine how the rescission, including the parties’ mutual return and tender obligations, should be effectuated.

Holdings

1. The Pelletiers' affidavits and supporting evidence rebutted the statutory presumption that the required notices and disclosures had been delivered, and the bank's failure to submit contrary evidence permitted the court to accept those facts as true.
2. The Pelletiers timely exercised their right to rescind because, in the absence of required notices and disclosures, the rescission right extended beyond the ordinary three-day period but remained available for up to three years after consummation of the transaction.
3. The Pelletiers were not required to tender the loan proceeds before Deutsche Bank performed its own statutory obligations following rescission.
4. Although summary judgment granting rescission was proper, further proceedings were necessary to define the scope and procedures for effectuating the rescission.

Questions Presented

1. Whether the Pelletiers rebutted the statutory presumption that they received the required Truth-in-Lending notices and material disclosures.
2. Whether the Pelletiers timely exercised their right to rescind the refinancing transaction.
3. Whether summary judgment granting rescission was proper despite the Pelletiers' failure to tender the loan proceeds before the creditor performed its statutory obligations.
4. What further proceedings were required to effectuate the rescission remedy.

Disposition

reversed_and_remanded