U.S. Bank National Association v. Manzo

(Court opinion corrected 11/22/11.) Court dismissed homeowners' affirmative defense, counterclaim and third-party-complaint, per Section 2-619, in mortgage foreclosure action, holding that their right to rescind mortgage expired under Truth in Lending Act (TILA) when they failed to exercise it within three years of receiving mortgage. Letters from homeowners and their counsel, and motion for leave to file counterclaim, did not affirmatively and clearly state their unqualified and present intent to rescind loan, and thus were not sufficient to rescind loan within three-year statute of repose in Section 1635(f) of TILA. As Section 13-207 allows claims for setoffs or counterclaims to be filed if barred by statute of limitation, homeowners are not prohibited from pursuing TILA Section 1640 damages claim under Illinois law. (LAVIN and STERBA, concurring.)