Eighth Circuit Finds No Merit in Borrowers’ “Show-Me-The-Note” Case


On August 27, the U.S. Court of Appeals for the Eight Circuit upheld a district court’s dismissal of a suit by borrowers challenging the validity of a foreclosure completed by their mortgage servicer. Butler v. Bank of Am., N.A., No 11-2653, 2012 WL 3641469 (8th Cir. Aug. 27, 2012). On appeal, the borrowers argued that their putative class action suit should be reinstated because the district court mistakenly characterized their claims as a single “show-me-the-note” claim, rather than as a quiet title action. After a close review of the allegations and causes of action, the court found no merit in this “borderline frivolous lawsuit” and upheld the dismissal. The court characterized the borrowers’ claims that the foreclosure was invalid because the servicer held the mortgage but not the note as a “flawed theory” unsupported by Minnesota law. Under Minnesota law and previous application of that law by the Eighth Circuit and Minnesota Supreme Court, the court held that the servicer has an undeniable right to initiate foreclosure as the legal holder of title.


Written by:

Published In:

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© BuckleySandler LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.