Judges Rule Against MERS Attempt to Move Dallas Lawsuit

A federal judicial panel denied a motion to include the Dallas County district attorney’s lawsuit against Merscorp in the ongoing multidistrict litigation against the private loan registry in Phoenix.

In its motion, Merscorp, the Reston, Va.-based parent company of the Mortgage Electronic Registration Systems, argued the claims in the Dallas County case are common with the other MDL cases and meet the panel’s requirements that consolidation would promote the convenience and “just and efficient conduct of the action.” But the judicial panel ruled there are important distinctions between the MDL and Dallas County cases.

“Most importantly, all existing MDL actions were brought by homeowners or borrowers who brought suit concerning their impending or completed foreclosure. In contrast, Dallas County involves the propriety of the MERS system’s failure to pay recordation fees under Texas’s recording statutes,” the judges’ order reads.

“Dallas County is pleased with the decision of the Judicial Panel on Multidistrict Litigation denying MERS’ efforts to have Dallas County’s pending action transferred to Arizona,” said Stephen Malouf, the outside counsel retained by Dallas County, in an email statement. “Dallas County believes that the case is properly pending in Dallas and looks forward to presenting its case to the court in which the case is pending.”

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