Editor: David Reiss
Brooklyn Law School

October 9, 2013

Rhode Island Court Rules That under State law, Only Parties to a Contract May Seek to Have Rights Declared Under a Contract

By Ebube Okoli

The Rhode Island court in deciding Fryzel v. MERS, No. CA 10-352 (D.Ri., 2011) decided that under Rhode Island law, only parties to a contract may seek to have rights declared under a contract. The court found that the plaintiff lacked standing to challenge the transfer of the promissory note or assignment of mortgage granted by Plaintiff.

The plaintiff’s complaint disputed AHMSI’s ability to foreclose by challenging the validity of the assignments of their mortgage. The plaintiff further claimed that AHMSI was not entitled to foreclose under the terms of the ‘Pooling and Servicing Agreement’. However, the court found that it was undisputed that plaintiffs were not parties to the assignment agreements or to the PSA. Thus, plaintiffs did not have standing to assert legal rights based on the specified documents.

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