Case 1:04-cv-00800-GJQ

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UNITED STATES DISTRICT COURT

FOR THE WESTERN DISTRICT OF MICHIGAN
SOUTHERN DIVISION
__________________________

SAMUEL R. MOORE, JR. and

CAROLYN A. MOORE,
Plaintiffs,
v.

Case No. 1:04-CV-800

CYCON ENTERPRISES, INC.,

HON. GORDON J. QUIST

Defendant and Third-Party Plaintiff.

v.
B & P GROUP, INC.,
Third-Party Defendant.
________________________________/
ORDER
In accordance with the Opinion filed on this date,
IT IS HEREBY ORDERED that Plaintiffs Motion For Summary Judgment For Damages
And Other Relief (docket no. 103) and Defendant Cycon Enterprises, Inc.s (Cycon) Motion For
Summary Judgment (docket no. 109) are GRANTED IN PART AND DENIED IN PART. As set
forth more fully in the Opinion, the Court has concluded that: (1) pursuant to the Truth in Lending
Act and Regulation Z, Plaintiffs are not liable for the $25,237.85 paid to B & P Mortgage and Romar
Financial/Peltz in connection with the transaction; (2) Plaintiffs are entitled to an award of statutory
damages based upon Cycons failure to comply with 15 U.S.C. 1635(b); (3) Plaintiffs are entitled
to a rent credit of $6,706.66; (4) Cycon is entitled to $6,462.27 on its claim for property taxes and
insurance payments for the property; and (5) the amount that Plaintiffs must tender to Cycon in order

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to be entitled to rescission is $186,017.76. In addition, Plaintiffs claim under the Michigan Credit
Services Protection Act is DISMISSED WITH PREJUDICE.
IT IS FURTHER ORDERED AND ADJUDGED that, pursuant to the Courts August 14,
2006, Order, the transaction between Plaintiffs and Cycon was a mortgage loan and not a sale.
Therefore, the Court concludes that Cycon has an equitable mortgage on the property described as:
The premises situated in the Township of Blue Lake, Muskegon County, Michigan,
commonly known as 51 W. Skeels Road, Montague, Michigan 49437, and legally
described as: The West 3/4 of the Northeast 1/4 of the Northwest 1/4 of the Northeast
3/4 of Section 5, Town 12 North, Range 16 West (the Property).
IT IS FURTHER ORDERED that within ten (10) days of the date of this Order, Cycon
shall reconvey the Property to Plaintiffs and shall record a certified copy of this Order with the
Muskegon County Register of Deeds. Plaintiffs shall have 90 days from the date of this Order to
secure refinancing of Cycons mortgage loan, to sell the Property, or to find some other way to repay
the loan balance to Cycon. Plaintiffs shall not encumber the Property during this time, except as
required to comply with this Order, without the prior written consent of Cycon. If Plaintiffs fail to
pay off the loan to Cycon in full or sell the Property within that time, Cycon may foreclose on its
equitable mortgage. The 90-day period will commence at the conclusion of the appeal period or any
appeal, should Cycon elect to file a notice of appeal.
IT IS FURTHER ORDERED that Plaintiffs shall pay Cycon interest on the $186,017.76
at the rate of seven percent (7%) per annum, payable monthly, commencing the date of this Order,
with the first payment due 30 days from this date. Plaintiffs obligation to pay interest shall continue
during any appeal. Cycon shall have the right to accelerate the foreclosure of the property in the
event that Plaintiffs fail to pay interest when due.

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IT IS FURTHER ORDERED that Plaintiffs counsel shall submit a petition for attorneys
fees and costs within fourteen (14) days from the date of this Order. Such petition shall be supported
with an affidavit of counsel, billing records, and other appropriate documentation. Cycon shall file
its response to Plaintiffs petition within twenty-one (21) days after the date of filing.

Dated: February 9, 2007

/s/ Gordon J. Quist

GORDON J. QUIST
UNITED STATES DISTRICT JUDGE