Alabama’s high court has rejected motions to dismiss a pair of lawsuits filed by counties in the state against MERSCORP Inc. and a trustee.
One of the lawsuits was filed by Walker County on behalf of a putative class of all similarly situated Alabama counties against U.S. Bank, N.A. in Walker Circuit Court.
The second was filed in Barbour Circuit Court by Barbour Probate Judge Nancy O. Robertson, in her official capacity, on behalf of a putative class of all Alabama probate judges against MERSCORP and Mortgage Electronic Registration Systems Inc.
The Barbour complaint alleges that MERS systematically obstructs Ala. Code §§ 35-4-50, 35-4-51, and 35-4-62 and interferes with probate judges’ duty to keep records of “conveyances of real property.
“Defendants, to profit their shareholders and customers, operate to circumvent the laws of Alabama which prescribe the recording of interests in real estate inclusive of conveyances and grants of such interests,” the complaint states. “The circumvention obstructs such laws, preventing their fulfillment.”
Defendants in both cases filed motions to dismiss, which were rejected.
So petitions for a writ of mandamus were filed in both cases with the Supreme Court of Alabama requesting that the trial courts be required to grant the motions.
The identical petitions, which were consolidated, alleged lack of standing by the plaintiffs and, in turn, the alleged lack of subject-matter jurisdiction of the trial courts.
But the petitions were denied on Friday.
“These cases do not fall within the subject-matter-jurisdiction exception to our general rule that we will not engage in mandamus review of a trial court’s denial of a motion to dismiss,” the court wrote. “We therefore deny the request for mandamus relief in both of the cases before us.”
MERS, however, notes that while the dismissals were denied, it will still have an opportunity to defend itself at trial.
“It’s important to keep in mind that the case has not been decided,” MERSCORP Holdings Inc. Vice President Corporate Communications Janis L. Smith said in a written statement. “The court did not rule on the merits — or lack thereof — and the matter will now proceed to trial.”
MERS has been successful defending itself in similar cases filed by counties in Illinois, Minnesota and Oregon, while it is still fighting at least one lawsuit filed in Kentucky.
