Illinois residents Thomas and Cathy Davis (plaintiffs) filed suit in federal court against G.N. Mortgage Corporation (G.N.) (defendant), and others, for breach of contract related to a mortgage contract the Davises had entered into with G.N. At the loan closing, the Davises claimed Patricia Bogdanovich (defendant), a representative of the title insurance company, provided them with two stacks of documents believed to be identical and containing a two-year prepayment penalty. The Davises signed one set of documents and retained an unsigned set for their records. Thereafter, G.N. sold the Davises’ mortgage to Countrywide Home Loans, Inc. (Countrywide) (defendant), which informed the Davises that a five-year prepayment penalty period applied to their mortgage, not a two-year period. The district court granted defendants’ motion for summary judgment. The Davises appealed.