Chhun v. Mortgage Elec. Registration Sys., Inc.Annotate this Case
Plaintiffs executed a mortgage identifying Domestic Bank as the lender and Mortgage Electronic Registration Systems, Inc. as a corporation “acting solely as nominee” for the lender and the lender’s assigns. Later, MERS purported to assign the mortgage to Aurora Loan Services, LLC (Aurora). Aurora “or the successful bidder” allegedly took a foreclosure deed at a subsequent foreclosure sale. Plaintiffs filed a complaint against MERS seeking a declaration that the assignment and foreclosure sale were void and that Plaintiffs owned a fee simple interest in the property. The superior court dismissed the complaint, concluding (1) Plaintiffs did not have standing to seek relief based on the assignment because they were neither an assignor nor an assignee of the assignment; and (2) even if Plaintiffs had standing, their allegations were insufficient to survive a motion to dismiss. The Supreme Court vacated the judgment of the superior court, holding (1) Plaintiffs had standing to prosecute their claim; and (2) Defendants’ Rule 12(b)(6) motion was improperly granted because Plaintiffs’ complaint stated a plausible claim upon which relief could be granted.