LaLiberte

Plaintiffs James LaLiberte and Jann and Dennis O’Connor appeal the trial court’s orders sustaining demurrers to class allegations without leave to amend. Plaintiffs contend they should have been allowed to further amend their class definition or to conduct further discovery to identify an adequate class representative. Plaintiffs also contend the trial court erred in ruling that rescission is unavailable as a class remedy for violations of the Truth in Lending Act (TILA) ( 15 U.S.C. § 1601 et seq.) and regulation Z, implementing TELA.

We agree the trial court erred in denying plaintiffs leave to amend the class definition in their third amended complaint, but conclude it correctly denied plaintiffs leave to amend the class action rescission claim in their second amended complaint.

I

Factual and Procedural Background

In April 2002, plaintiffs applied to defendant Pacific Mercantile Bank (PMB) for refinance loans secured by their principal residences. In connection with the loans, PMB provided plaintiffs with disclosure statements purporting to include the disclosures required by TILA. The statements, however, failed to disclose closing fees of $450 charged in each of…