Editor: David Reiss
Brooklyn Law School

March 17, 2014

Georgia Court Denies Plaintiffs’ Motion for Reconsideration

By Ebube Okoli

The court in deciding White v. Bank of Am., N.A., 2013 U.S. Dist. (N.D. Ga., 2013) ultimately denied the plaintiff’s motion for reconsideration, therein upholding the decision of the lower court.

Plaintiffs alleged that because BANA did not hold the note and it was not the assignee of the security deed it lacked the authority to foreclose. Plaintiffs alleged further that defendants falsely represented that BANA was the plaintiffs’ secured creditor. Plaintiffs sought injunctive relief and compensatory and punitive damages.

On May 10, 2013, the lower court granted the defendants’ motions to dismiss plaintiffs’ complaint. The lower court found that the plaintiffs executed the security deed with the power of sale in favor of MERS, and that MERS assigned its rights under the security deed to BACHLS; that BACHLS merged into BANA; and that, as a result of the merger, BANA acquired the rights and interests of BACHLS, including the security deed.

The lower court concluded that BANA, as holder of the Note and Security Deed, was entitled to foreclose on the property and that the plaintiffs had not, and could not, state a claim for relief under any legal theory based on BANA’s alleged lack of authority to foreclose on the Property.

On appeal, the plaintiffs reassert their argument that BANA lacked standing to foreclose on the property because it did not also hold the note. Plaintiffs argued that the note was “unauthenticated” and thus the endorsement from First Option to Countrywide is not valid.

After considering the plaintiff’s contentions, this court found that the plaintiffs’ motion for reconsideration on this basis should be denied.

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