Rendler v. Corus Bank

Rendler v. Corus Bank

NOTICE OF PENDENCY OF CLASS ACTION

PLEASE READ THIS NOTICE CAREFULLY. THIS IS NOT A NOTICE OF A LAWSUIT AGAINST YOU. YOU MAY BENEFIT FROM READING THIS NOTICE.

TO: All natural persons who simultaneously obtained a mortgage loan and a separate home equity line of credit from Corus Bank, N.A. ("Corus") on or after November 8, 1995 (one year prior to the filing of this action); where Corus' files show that the loan proceeds and the credit were used to financing more than 80% of the cost to purchase or refinance residential real property; and Corus issued two loans and two Truth in Lending disclosure statements in connection with this single purchase or refinance.

I. WHY ARE YOU RECEIVING THIS NOTICE?

This Notice informs you, pursuant to Rule 23(c)(2) of the Federal Rules of Civil Procedure, that there is a class action lawsuit pending, entitled Rendler v. Corus Bank, N.A., Case Number 96 C 7351, in the United States District Court for the Northern District of Illinois Eastern Division.

II. WHAT IS THIS LAWSUIT IS ABOUT?

In October of 1995, plaintiff, Geraldine Rendler went to Corus to obtain 100% financing for a condominium she was purchasing. Because Mrs. Rendler wanted to borrow more than 80% of the value of residential real estate, Corus offered two loans under its 80/20 program. Under this program, Corus will finance up to 80% of the value of the property through the use of a conventional first mortgage and will then issue a home equity line of credit for the remaining amount. Corus issued two loans to Mrs. Rendler: an adjustable note secured by a first mortgage and a home equity line of credit secured by a second mortgage.

Plaintiff alleges that this policy and practice on the part of Corus violated the federal Truth in Lending Act, 15 U.S.C. 1601 et seq. ("TILA"), and implementing Federal Reserve Board Regulation Z, 12 C.F.R. part 226 et seq. ("Regulation Z"), because Corus offered multiple loans for one purpose.

The Court has not made a determination whether Corus violated TILA by issuing two loans and two Truth in Lending disclosure statements in connection with the financing or refinancing of a single purchase of residential real estate.

III. WHO IS IN THE CLASS?

On March 30, 2000, the Court determined that this lawsuit should continue as a class action. The class consists of:

a. All natural persons who simultaneously obtained a mortgage loan and a separate home equity line of credit from Corus Bank, N.A. ("Corus") on or after November 8, 1995 (one year prior to the filing of this action); where

b. Corus' files show that the loan proceeds and the credit were used to financing more than 80% of the cost to purchase or refinance residential real property; and

c. Corus issued two loans and two Truth in Lending disclosure statements in connection with this single purchase or refinance.

IV. WHAT ARE THE POTENTIAL BENEFITS?

In a TILA class action, the class may, if successful, receive (i) any actual damages; and (ii) statutory damages that cannot exceed the smaller of $500,000 or one percent of the net worth of the defendant, with the Court to determine the exact amount based on the culpability of the defendant's conduct and the amount of harm caused by the defendant, which statutory damages must be divided among all the members of the class. At this time, counsel for plaintiff has not ascertained the number of class members.

If these violations were established in an individual action, you would have the right to recover a maximum of (i) statutory damages equal to twice the finance charge, not less than $100.00 nor more than $1,000.00, and (ii) any actual damages. Of course, you would only have these rights if you prevailed, which cannot be assured.

V. WHO REPRESENTS THE CLASS?

The following attorneys represent Ms. Rendler and the class ("Class Counsel"):

Daniel A. Edelman Cathleen M. Combs James O. Latturner Tara L. Goodwin EDELMAN, COMBS & LATTURNER 120 South LaSalle Street, 18th Floor Chicago, Illinois 60603 (312) 917-4504 (312) 419-0739 (FAX)

Class Counsel represents your interests in this lawsuit. You will not be charged for their services. You may, however, hire your own attorneys at your own cost to advise you in this matter.

VI. WHAT ARE YOUR OPTIONS?

You have the choice of remaining in, or excluding yourself from, the class. Each choice has certain risks and consequences. You have the right to discuss your decision with Class Counsel or your own attorney.

If you stay in the class, you will be bound by the result of the lawsuit, whether that result is favorable or unfavorable. You will receive a benefit if the Court determines that Corus violated the law. If Corus wins, you will be bound by the judgment and your claims will be extinguished. If you elect to stay in the class, you do not need to do anything further. However, even if you elect not to be excluded from the class, you may still file an appearance in this action through your counsel.

If you exclude yourself from the class, you (i) will not be bound by any judgment or disposition of this case, (ii) will retain any claims you may have against Corus and (iii) will not share in any recovery awarded by the Court or under any settlement with Corus.

If you wish to exclude yourself from the class, you must send a letter to Class Counsel Edelman, Combs & Latturner containing the name and number of this case (see section I), and stating that you wish to be excluded. The letter must be postmarked on or before March 19, 2001. If you mail a request for exclusion, you bear the risk of any problem with the mails.

If you elect to be excluded from the class, you may file an individual action or intervene in this action. If you intend to choose this option, consult with Class Counsel or your own attorney prior to the expiration of the opt-out period. The statute of limitations, which stopped running on November 8, 1996, when this case was filed, will begin running again upon your filing of the exclusion. You will have the same number of days to file suit as you had on November 8, 1996. If you want your own attorney to represent you in an individual case, the terms of such representation are a matter for you and your attorney to negotiate.

VII. CORRECT ADDRESS

If this Notice was sent to you at your current address, you do not have to do anything more to receive further notices concerning this case. If this Notice was forwarded to you by the postal service, or if it was otherwise sent to you at an address which is not current, you should immediately send a letter to Class Counsel, Edelman, Combs & Latturner, stating your past and current addresses.

VIII. WHO CAN HELP WITH ADDITIONAL INFORMATION?

Any further questions that you or your attorney may have concerning this Notice should be directed to Class Counsel, Edelman, Combs & Latturner.

THE COURT EXPRESSES NO VIEW AS TO THE MERITS OF ANY CLAIMS OR DEFENSES ASSERTED BY ANY PARTY TO THE COMPLAINT. NEITHER THE CERTIFICATION OF THE CLASS NOR THE SENDING OF THIS NOTICE SHOULD BE CONSTRUED AS AN INDICATION OF THE COURT'S VIEW AS TO THE MERITS OF THIS LITIGATION. THE SOLE PURPOSE OF THIS NOTICE IS TO INFORM YOU OF THE PENDENCY OF THE LITIGATION SO THAT YOU MAY MAKE APPROPRIATE DECISIONS AS TO STEPS YOU MAY WISH TO TAKE, IF ANY, IN RELATION TO THIS LAWSUIT.