Editor: David Reiss
Brooklyn Law School

April 12, 2013

Southern District Court of Texas Dismissed Complaint that MERS Lacked Standing

By Gloria Liu

In Maxwell v. Chase Home Finance, No. H-09-4038, 2011 WL 181345 (S.D. Tex. Jan. 19, 2011), the court dismissed homeowner’s “cookie cutter” complaint that MERS lacked standing to sue. Maxwell, the homeowner, alleged (1) that Chase Home Finance violated these provisions, (2) that they did not supply or execute a Promissory Note to accompany the Texas Security Deed, and (3) that the Texas Security Deed was transferred and sold without proper notice. He further complained that MERS was used to foreclose on his real property and conclusorily charged that MERS has no standing to bring an action for foreclosure. The court found most of the claims to be barred by the statute of limitations. It also found that the complaint was a “third bite of the apple” and that permitting another amendment to the complaint would not only be inappropriate, but would be prejudicial. Therefore the motion was dismissed.

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