Case 0:09-cv-00221-PJS-FLN Document 39 Filed 12/10/09 Page 1 of 2

UNITED STATES DISTRICT COURT

DISTRICT OF MINNESOTA

MARGARET J. COLEMAN, Case No. 09-CV-0221 (PJS/FLN)

Plaintiff,

v.
ORDER
CROSSROADS LENDING GROUP, INC.;
GREAT NORTHERN FINANCIAL
GROUP, INC.; and FIRST COMMERCIAL
BANK,

Defendants.

Amber M. Hawkins, THE LEGAL AID SOCIETY OF MINNEAPOLIS, for plaintiff.

John F. Bonner, III, BONNER & BORHART LLP, for defendants.

This matter is before the Court on plaintiff’s motion for summary judgment. Based on all

of the files, records, and proceedings herein, and for the reasons stated on the record at the

December 8, 2009 hearing, IT IS HEREBY ORDERED THAT:

1. Plaintiff’s motion [Docket No. 19] is GRANTED.

2. It is hereby DECLARED that the mortgage encumbering plaintiff’s home is void.

Within twenty days of the date of this order, defendant First Commercial Bank,

the assignee, shall file a properly executed Release of Mortgage with the Ramsey

County Recorder’s Office and take any other actions necessary to terminate the

security interest. 15 U.S.C. § 1635(b); 12 C.F.R. § 226.23(d).

3. It is hereby DECLARED that plaintiff is not liable for any finance charge or other

charges regarding the February 1, 2006 transaction. 15 U.S.C. § 1635(b); 12

C.F.R. § 226.23(d)(1).
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4. Within ten days from the date of this Order, defendants Crossroads Lending and

First Commercial Bank shall jointly prepare, deliver to plaintiff and file with the

Court an accounting of the disbursement of the $180,000 in proceeds from the

February 1, 2006 loan transaction. Defendants shall separately identify all funds

paid either directly by plaintiff or from plaintiff’s settlement proceeds to anyone

other than plaintiff or her prior creditors. Rather than requiring defendants to

return the funds paid by plaintiff to her at this time, the Court shall deduct the

total of those payments from plaintiff’s obligation to tender back funds that she

received after such amounts have been determined through further proceedings

herein. 15 U.S.C. § 1635(b); 12 C.F.R. § 226.23(d).

5. Defendant First Commercial Bank is ordered to pay plaintiff $4,000 in statutory

damages for its failure to honor plaintiff’s valid rescission. 15 U.S.C.

§ 1640(a)(2)(A)(iii). Such amount shall be credited against plaintiff’s tender

obligation after further proceedings herein.

6. Defendant First Commercial Bank is ordered to pay plaintiff’s reasonable costs

and attorneys fees incurred to bring this action to enforce her right to rescind. 15

U.S.C. § 1640(a)(3). The Court shall determine the amount of those fees at the

conclusion of these proceedings.

Dated: December 10, 2009 s/Patrick J. Schiltz

Patrick J. Schiltz
United States District Judge

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