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CUNNINGHAM v. NATIONSCREDIT FINANCIAL SERVICES

No. 06-2250.

497 F.3d 714 (2007)

Elizabeth CUNNINGHAM and Estate of Louise Cunningham, Plaintiffs-Appellants, v. NATIONSCREDIT FINANCIAL SERVICES CORPORATION d/b/a Equicredit Corporation of Illinois, Loan Center, Incorporated and Marvin Hunter, Defendants-Appellees.

United States Court of Appeals, Seventh Circuit.

Decided August 14, 2007.

Attorney(s) appearing for the Case

Steven J. Plotkin (argued), Evanston, IL, for Plaintiffs-Appellants.

Craig A. Varga, Harold Hilborn (argued), Varga, Berger, Ledsky, Hayes & Casey, Cathy A. Pilkington, Chicago, IL, for Defendants-Appellees.

Before POSNER, WOOD, and SYKES, Circuit Judges.

SYKES, Circuit Judge.

Elizabeth Cunningham and her mother refinanced their home and paid more than $10,000 of their loan proceeds to a company previously unknown to them but identified on their loan documents as one of their creditors. The mystery creditor turned out to be a sham company operated by the Cunninghams' loan officer, who pocketed the money himself. Two years after the loan closing, Elizabeth and her mother's estate filed suit, asserting state-law claims...

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