Dallas County, TX v. MERSCORP, Inc.

The Counties filed suit against defendants, alleging that defendants violated Texas Local Government Code 192.007 and Texas Civil Practice and Remedies Code 12.002, and, alleging claims of fraudulent misrepresentation and unjust enrichment. The court agreed with the district court's holding that it had no authority to grant the requested relief under the Declaratory Judgment Act, 28 U.S.C. 2201, because the Texas Legislature did not create a private right of action to enforce section 192.007. The court also agreed with the district court's holding that even if there were a right of action, section 192.007 does not impose a duty to create and record assignments of deeds of trust when an interest in the related promissory note is transferred. Dallas County's common law claim for fraudulent misrepresentation failed based upon the reliance and injury elements. Finally, the unjust enrichment claim failed because any benefit from recording a mortgage was derived not from the county clerk, but from Texas law recognizing lien priority. Accordingly, the court affirmed the district court's dismissal of all of the Counties' claims. View "Dallas County, TX v. MERSCORP, Inc." on Justia Law