Opinion ID: 378909
Heading Depth: 2
Heading Rank: 3

Heading: Costs of preparing disclosure statements

Text: 36 The Real Estate Settlement Procedures Act prohibits the imposition of any charge for the preparation of statements required by its provisions or those of the Truth in Lending Act. 12 U.S.C. § 2610. 9 In their complaint, the Vegas alleged that First Federal had improperly included the cost of preparing statements required by the Acts as an element of settlement costs. The district court granted summary judgment in favor of First Federal on this claim. The court relied on an affidavit submitted by an officer of First Federal which stated that First Federal had not increased its closing fees since the enactment of the Real Estate Settlement Procedures Act. There was nothing in the record which contradicted this affidavit. The Vegas did not file any affidavits indicating a different set of facts. Nor did the Vegas present reasons why such opposing affidavits could not be produced as required under Rule 56(f) of the Federal Rules of Civil Procedure. 37 Nonetheless, we believe that summary judgment was improper due to the fact that the Vegas were denied the opportunity to conduct any discovery. 10 The Vegas had filed two sets of interrogatories in an attempt to determine the various cost elements in the closing fees of First Federal. First Federal had objected to those interrogatories and had refused to produce any information. This discovery dispute was still unresolved when the district court granted summary judgment in favor of First Federal. Unlike the other claims asserted by the Vegas, this one presented both a factual and a legal issue. Prior to deciding such a factual issue by means of summary judgment, a district court must provide both parties an opportunity to conduct some discovery. Parrish v. Board of Commissioners, 533 F.2d 942 (5th Cir. 1976). This opportunity for discovery is even more critical in cases such as this one where the defendant possesses all of the relevant information. Only through discovery can it be determined whether a material factual issue exists which precludes summary judgment. In this case, the Vegas were denied the opportunity to pursue relevant avenues of inquiry concerning the settlement costs imposed by First Federal. Accordingly, we believe that summary judgment was inappropriate.