The opinion of the court was delivered by: Alesia, Judge
MEMORANDUM OPINION AND ORDER
Currently before the court is defendant's motion for judgment on the
pleadings pursuant to Federal Rule of Civil Procedure 12(c) ("Rule 12
(c)"). For the following reasons, the court denies defendant's motion.
On November 7, 2000, Teofilo Leon ("Leon") boa owed money from
Washington Mutual Bank ("Washington Mutual") to finance the purchase of
his home. In connection with this transaction, Leon signed and received;
a note, a mortgage, a 1-4 Family Rider/Assignment of Rents ("Rider"), a
Truth in Lending Statement ("TILA Disclosure"), a HUD-1 Settlement
Statement, and an Owner Occupancy Agreement. Leon brings this action
Washington Mutual violated the Truth in Lending Act ("TILA"),
15 U.S.C. § 1601 et seq. and Federal Reserve Board
Regulation Z, 12 C.F.R. § 226, because the TILA Disclosure does not
accurately disclose the property interest that Washington Mutual acquired
by the terms of the Rider.
The TILA Disclosure states that Leon gave Washington Mutual a security
interest in "the goods or property being purchased." Leon claims the
Disclosure was inadequate because it fails to reflect an extensive
security interest that the Rider creates in Leon's personal property. The
A. ADDITIONAL PROPERTY SUBJECT TO THE SECURITY
INSTRUMENT. In addition to the Property described in
the Security Instrument, the following items are added
to the Property description, and shall also constitute
the Property covered by the Security Instrument:
building materials, appliances and goods of every
nature whatsoever now or hereafter located in, on, or
used, or intended to be used in connection with the
Property, including, but not limited to, those for the
purposes of supplying or distributing heating,
cooling, electricity, gas, water, air and light, fire
prevention and extinguishing apparatus, security and
access control apparatus, plumbing, bath tubs, water
heaters, water closets, sinks, ranges, stoves,
refrigerators, dishwashers, disposals, washers,
dryers, awnings, storm windows, storm doors, screens,
blinds, shades, curtains and curtain rods, attached
mirrors, cabinets, paneling and attached floor
coverings now or hereafter attached to the property,
all of which, including replacements and additions
thereto, shall be deemed to be and remain a part of
the Property covered by the Security Instrument.
Washington Mutual is now moving for judgment on the pleadings,
claiming: (1) the
TILA Disclosure's description of the security interest taken in the
transaction was adequate as a matter of law because the Rider creates
only incidental interests to the property, which are prohibited from
disclosure under TILA; (2) Washington Mutual acted in good faith reliance
upon Regulation Z; and (3) Washington Mutual's use of model forms protects
it from liability under TILA.
A. Judgment on the Pleadings Standard
A motion for judgment on the pleadings pursuant to Rule 12(c) is
subject to the same standard as a motion to dismiss for failure to state
a claim pursuant to Rule 12(b)(6). Hentosh v. Herman Al Finch Univ. of
Health Sci./The Chicago Med. Sch., 167 F.3d 1170, 1173 n.2 (7th Cir.
1999). Therefore, a court should not grant a motion for judgment on the
pleadings unless "it appears beyond doubt that the plaintiff cannot prove
any facts that would support his claim for relief" Craigs, Inc. v. Gen.
Elec. Capital Corp., 12 F.3d 686, 688 (7th Cir. 1993). The court must
accept all well-pleaded allegations in the complaint as true and draw all
reasonable inferences in favor of the plaintiff Midwest Grinding Co. v.
Spitz, 976 F.2d 1016, 1019 (7th Cir. 1992).
Also, according to Federal Rule of Civil Procedure 10(c), "A copy of
any written instrument which is an exhibit to a pleading is a part
thereof for all purposes." FED. R. Civ. P. 10(c). The Seventh Circuit
has extended the term "written instrument" under Rule 10(c) to loan
documentation. See N. Ind. Gun & Outdoor Shows v. City of South Bend,
163 F.3d 449, 453 (7th Cir. 1998). Accordingly, in ruling on defendant's
motion for judgment on the pleadings, it is proper for the court to
consider the relevant mortgage documents, which Leon attached to ...