Scott v. Mayflower Home Improvement Corp.

A-M-350-95T2 (N.J. Super Ct. App. Div. filed Dec. 12,1995). ; Clearinghouse Number: 51164

Description

Amicus Argues That Trial Court Erred in Granting Summary Judgment to Bank in Class Action Against Home Improvement Fraud

Abstract

Amicus legal services program has filed its brief in this class action against "equity skimming" by defendant home improvement contractors and bank. Plaintiff consumers allege that defendants violated state and federal law by fraudulently inducing them to enter into agreements to finance home repairs. Bank, the largest purchaser of paper from defendant contractors, had been assigned at least 130 notes and mortgages by contractors. The trial court granted the bank summary judgment, and, on appeal, amicus argues that the trial court applied incorrect legal standards in doing so. Amicus asserts that contractors and bank, even without direct connection with named plaintiffs but with a connection with the plaintiff class, are properly defendants. To release by summary judgment any defendant with substantial connection with two other defendant home repair contractors alleged to be at the point of the home repair fraud, would be an injustice. Amicus also argues that bank is properly a defendant in the class claims because the facts as alleged set forth substantial legal claims; bank can be found liable as an assignee of the home repair contractors under ordinary contract law, state regulations concerning home repair contracts, and the Truth in Lending Act (TILA). The statute of limitations would not bar plaintiffs’ claims because recoupment by reducing the amount owed is still available and because equitable tolling may be available if certain TILA disclosures were fraudulently concealed, as plaintiffs allege.

Additional Information

Attorney Information
Amicus Curiae represented by Melville Miller, Dawn Miller, Legal Services of New Jersey, 100 Metroplex Dr., Suite 402, Edison, NJ 08818-1357, (908) 572-9100.
Docket Date
1995-12-12 00:00:00+00:00

Files

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