Cole v. Lovett

On November 9, 1982, two employees of Capitol Roofing (Capitol) (defendant) visited Norman and Judy Cole (plaintiffs) to sell Capitol’s vinyl-siding services. That evening, the Coles signed a contract for the installation of vinyl siding on their home, financed with a loan through Capitol. The contract contained a work order, loan application, disclosure statements, and a notice of the right to cancel the agreement. However, the Capitol employee who helped with the contract only lifted the pages of the contract enough for the Coles to sign the documents. The only document the Coles actually saw during the signing process was the work order. When the contract was signed, the Coles were given copies of only the work order and disclosure statements. The next morning, the Coles called Capitol and attempted to cancel the contract. Capitol refused, explaining that the contract had already been processed. Capitol installed the vinyl siding and immediately assigned the contract to United Companies Mortgage (UCM) (defendant). The Coles began making monthly payments to UCM. After experiencing problems with the vinyl siding, the Coles stopped making payments to UCM. In 1984 the Coles hired a lawyer and learned that the Truth in Lending Act provided a right of rescission to consumers who made credit purchases such as their purchase of the vinyl siding. The Coles notified UCM of their desire to exercise their right of rescission. UCM did not respond. The Coles filed a lawsuit in federal court, alleging that Capitol violated the Truth in Lending Act by failing to notify the Coles of their right to rescind the transaction. The Coles sought to enforce their right of rescission.