Davis v. G.N. Mortgage Corp.
United States Court of Appeals for the Seventh Circuit
396 F.3d 869 (2005)
The Davises (plaintiffs) signed mortgage closing documents, including an addendum specifying a five-year prepayment penalty, but claimed a title company representative had given them documents they believed contained only a two-year penalty; when their mortgage was later sold and the new servicer confirmed the five-year term, the Davises sued G.N. Mortgage and others (defendants) for breach of contract and fraud, and the district court granted the defendants summary judgment.
Whether, in Illinois, a party to a clear, unambiguous, and fully-integrated signed contract alleging fraud must show by clear and convincing evidence the existence of (1) a false statement of a material fact, (2) the defendant's knowledge that the statement was false, (3) that the defendant made the statement to induce plaintiff to act, and (4) the plaintiff relied on defendant's false statement.