Robetson v. MERSCORP, Inc.
141 So. 3d 984
| Ala. | 2013Background
- Two mandamus petitions seek review of denials of motions to dismiss for lack of standing and subject-matter jurisdiction, consolidated for one opinion.
- Case no. 1111567: Walker County, on behalf of a putative class of Alabama counties, sues U.S. Bank to recover recorded-fee-related damages and for declaratory, injunctive, and monetary relief in Barbour or Walker County courts depending on case.
- Case no. 1111370: Barbour Probate Judge Robertson, in official capacity, sues MERSCORP and MERS on behalf of all Alabama probate judges for declaratory, injunctive, and monetary relief related to recording statutes.
- Core issue involves mortgage securitization, the role of MERS as nominee, and the recording of assignments in county records under Alabama recording statutes.
- MERS defendants argued lack of standing due to no private cause of action under recording statutes; U.S. Bank argued probate judge has no injury or right to fees from non-recorded assignments.
- Trial courts denied motions to dismiss; mandamus petitions argued that standing challenges implicate subject-matter jurisdiction.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether standing challenges to recording-statute claims implicate jurisdiction | Robertson: injury from lost recording fees; Barbour County interest supports standing | MERS/US Bank: no duty to record; statutes do not create private rights; no standing | standing issues collapse into cause-of-action viability; not jurisdiction |
| Whether the petitions fall within the limited subject-matter-jurisdiction exception to mandamus review | petitions rely on standing to invoke jurisdiction | no jurisdictional defect; theories viability is not standing | no mandamus relief; exception not met |
| Whether the recording statutes create a private right of action for probate judges or counties | statutes protect recording fees and conveyance interests; injury to counties/Judge Robertson | statutes do not impose a private duty or create a private right of action | court rejects private-right-of-action theory; not deciding merits of theory |
| Whether the petitions effectively challenge the viability of plaintiffs’ legal theories rather than standing | theory implicates injury from failure to record | theories are not cognizable under Alabama law | the issues are action/claim-viability, not justiciability; deny mandamus |
Key Cases Cited
- Wyeth, Inc. v. Blue Cross & Blue Shield of Alabama, 42 So.3d 1216 (Ala.2010) (standing vs. cause-of-action distinction clarified)
- Ex parte Kohlberg Kravis Roberts & Co., 78 So.3d 959 (Ala.2011) (standing is not a substitute for cogent cause-of-action analysis)
- Ex parte Health-South Corp., 974 So.2d 288 (Ala.2007) (narrow standing exception for jurisdictional review when appropriate)
- Ex parte Liberty Nat’l Life Ins. Co., 825 So.2d 758 (Ala.2002) (denial of mandamus as review when adequate remedy exists by appeal)
- Bond v. United States, 131 S. Ct. 2355 (U.S.2011) (distinguishes standing questions from merits/causes of action)
