National Association Of Attorneys General Gives A.G.'s Office Award For Best Legal Brief Filed By A State In The Supreme Court
Brief Urged Court To Protect Families Fighting To Stay In Their Homes By Preserving Their Rescission Rights Under The Truth In Lending Act
WASHINGTON – In recognition of legal excellence in advocacy before the U.S. Supreme Court, the National Association of Attorneys General (NAAG) today presented the Office of New York State Attorney General Eric T. Schneiderman with its “Best Brief Award” for the current Supreme Court term. The non-partisan organization presented this award for the Attorney General’s friend-of-the-court brief in the case of Jesinoski v. Countrywide Home Loans.
“I could not be prouder of the work done by Barbara Underwood, Steven Wu and Cecelia Chang to protect the rights of homeowners in this case,” said Attorney General Eric Schneiderman. “The work by my office in this instance is a leading example of our efforts to ensure that homeowners are treated fairly in New York. From creating the Homeownership Protection Program to help New Yorkers at risk of foreclosure stay in their homes to securing settlements with banks for their roles in the housing crisis, we continue to stand-up for homeowners in need.”
The brief successfully urged the U.S. Supreme Court to uphold consumer rescission rights under the federal Truth in Lending Act (TILA). TILA requires creditors to clearly and accurately disclose the terms of loans to consumers and to inform consumers about their statutory rights. When creditors fail to take these steps, consumers have three years from the date of a covered home loan to rescind the loan. Rescission is a powerful consumer remedy and protects consumers from losing their homes in foreclosure proceedings.
New York’s amicus brief argued that consumers exercise TILA rescission rights by giving written notice to creditors and that TILA does not compel consumers to also file a lawsuit seeking rescission within three years of a covered loan. A lawsuit requirement would place rescission out of reach for many consumers because consumers frequently do not discover TILA violations until several years after taking out a loan—often, when they are facing foreclosure and cannot obtain legal representation to file a rescission suit.
On January 13, 2015, the Supreme Court unanimously agreed with the position supported by Attorney General Schneiderman and held that written notice alone is sufficient for consumers to exercise TILA rescission rights in a timely manner.
The brief was filed on behalf of 26 states and the District of Columbia. It was chosen for the award by a panel of experienced private-sector Supreme Court litigators.
The states joining the brief in addition to New York were Arizona, Arkansas, Connecticut, Delaware, Hawaii, Illinois, Indiana, Iowa, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Nevada, New Hampshire, New Mexico, North Carolina, Oregon, Rhode Island, Tennessee, Vermont, Washington, and West Virginia. The coalition was also joined by the District of Columbia.
NAAG is a non-partisan organization founded in 1907 to foster interstate cooperation on legal and law enforcement issues, conduct policy research and analysis of issues, and facilitate communication between the states’ chief legal officers and all levels of government. NAAG's “Best Brief Award" is presented based on the decision of a panel consisting of appellate experts from major private law firms throughout the United States.
The award will be presented on June 18 in San Diego, California, to Solicitor General Barbara Underwood, Deputy Solicitor Steven C. Wu, and Special Counsel Cecelia Chang.
A copy of the Attorney General’s award-winning brief is available here.