MAKE GILLIS AND WIFE, EULA GILLIS, APPELLANTS,
v.
FISHER HARDWARE COMPANY, A FLORIDA CORPORATION, APPELLEE

Fla. 1st DCA | 1974-02-12
No. T-110
RAWLS, C. J., and WIGGINTON, JOHN T., Associate Judge, concur.
289 So. 2d 451 Florida District Court of Appeal, First District (1974) Positive Treatment
Cited by 4 cases

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Synopsis

Gillis and his wife appealed a partial summary judgment in a mortgage foreclosure action brought by Fisher Hardware Company, challenging the lower court's determination that the Federal Consumer Credit Protection Act did not apply and that the statute of limitations had run on their counterclaim. The appellate court affirmed, holding that a factual dispute existed regarding notice of rescission rights, the statutory one-year limitation period had expired, and the Act does not affect contract enforceability but only provides statutory remedies.


Holding

The court affirmed the lower court's partial summary judgment, holding that (1) a genuine issue of material fact existed regarding whether appellants received notice of rescission rights, precluding summary judgment; (2) the one-year limitation period in 15 U.S.C.A. § 1640(e) applied and had expired since the counterclaim was brought more than one year after the agreement date; and (3) under 15 U.S.C.A. § 1610(d), failure to provide proper notice cannot affect contract validity but only limits the consumer to statutory remedies.


Headnotes

[1] A motion for summary judgment based on a creditor's alleged failure to provide notice of the right to rescind a consumer credit contract is properly denied when there is…

[2] The one-year statute of limitations for actions under the Consumer Credit Protection Act applies from the date of the occurrence of the violation.

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Key Quotes

“Section 1640(e) provides that an action must be brought within one year from the date of the occurrence of the violation.”

Establishes the applicable statute of limitations period for Consumer Credit Protection Act claims.

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Facts & Procedural History

On August 5, 1969, appellants purchased a home improvement package from appellee and executed a mortgage on their residence to secure payment. Appella…

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Opinion of the Court
SPECTOR, Judge.

SPECTOR, Judge.

On August 5, 1969, appellants and appel-lee entered into an agreement whereby the latter sold appellants a “home improvement” package and secured payment thereof by a mortgage executed by appellants covering their residence. On May 20,' 1971, appellee instituted a suit to foreclose the mortgage because appellants had failed to make the required payments.

Appellants answered asserting various defenses, among which was the appellee’s failure to comply with the Federal Consumer Protection Act of 1968. Appellants further counterclaimed on the grounds that appellee had failed to comply with the Federal Consumer Protection Act and prayed for the maximum damages provided under that Act.

The lower court entered a partial summary judgment in favor of appellee holding that the Consumer Credit Protection Act was not applicable and denied appellants’ motion for summary judgment.

Appellants then took this interlocutory appeal contending first that the lower court erred in denying their motion for summary judgment based upon appellee’s noncompliance with the Consumer Credit Protection Act. Secondly, it is contended that the lower court erred in holding that the statute of limitation contained in the Act had run.

As to appellants’ first point, they contend that appellee failed to properly notify appellants of their right to rescind the contract under Title 15, U.S.C.A. § 1635 and 12 CFR 226.9 (Regulation Z) issued pursuant thereto. We agree with the trial court that there was sufficient conflicting evidence as to the circumstances involving the notice of the right to rescind so as to deny a motion for summary judgment based thereon. Although appellants claim that they never received the notice and the signatures contained thereon were forgeries, appellee’s depositions show that notices were always mailed to customers and that a notice to appellants had been mailed. It appears therefore that there is a justiciable question of fact on this issue.

We also agree with the lower court that the one year limitation on actions contained in Title 15, U.S.C.A. § 1640(e) is applicable in the instant case. Section 1640(e) provides that an action must be brought within one year from the date of the occurrence of the violation. It is obvious that the instant suit on counterclaim was initiated more than a year from the date the agreement was entered into.

We would also point out that under Title 15, U.S.C.A. § 1610(d), failure of creditor to properly notify a consumer of his right to rescind cannot affect the validity or enforceability of any contract or obligation but rather the consumer is limited to the remedy provided in the Act. Therefore, the defense based on the Consumer Protection Credit Act cannot stand.

For the foregoing reasons, we dismiss the interlocutory appeal herein without prejudice to appellants’ right to assert any rights they may have under Florida’s Retail Installment Sales Acts found in Chapter 520, Florida Statutes, F.S.A. Interlocutory appeal dismissed.

RAWLS, C. J., and WIGGINTON, JOHN T., Associate Judge, concur.


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Citator

Cited By

  • …ee Sosa v. Fite, 498 F. 2d 114 (5th Cir. 1974); Powers v. Sims & Levin Realtors, 396 F.Supp. 12 (E.D.Va. 1975); 15 U.S.C. § 1635(b). As suggested in Grandway Credit Corp. v. Brown, 295 So. 2d 714 (Fla. 3d DCA 1974) and Giliis v. Fisher Hardware Co., 289 So. 2d 451 (Fla. 1st DCA [*861] 1974) the underlying obligation is not voided by 15 U.S.C. § 1635 rescission unless the creditor fails to perform his statutory duties. . It has not been firmly established whether the ■ debtor can elect both remedies, that is…
  • Pub. Fin. Serv. of Cent. Miami, Inc. v. Mixon, 49 Fla. Supp. 40 (Dade Cty. Ct. 1979)
    …urts have divergent opinions. Attorneys for both parties herein suggest that there are no controlling Florida appellate court decisions. However, plaintiff has cited the First District Court of Appeal case of Gillis v. [*42] Fisher Hardware Company, 289 So. 2d 451, which held that a violation by a creditor of the Truth in Lending Act does not affect the validity and enforceability of the contract or obligation, but that the consumer is limited to the remedy provided by the Truth in Lending Act. The court in t…

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