Maryland Court Throws Out Robo-Signing Case

Posted by Orb Staff on January 30, 2012 No Comments
Categories : Mortgage Servicing

10822_robosigning Maryland Court Throws Out Robo-Signing Case A federal class-action lawsuit involving allegations of robo-signing was thrown out of court after a judge ruled that the plaintiffs were too late in raising those charges.

The Baltimore Sun reports that U.S. District Court Judge J. Frederick Motz said homeowners should have raised the robo-signing issue during their original foreclosure cases and could not introduce them in a later lawsuit. The plaintiffs – two homeowners who lost their respective properties in foreclosure cases – argued that allegations of robo-signing at the law firm Shapiro & Burson were not disclosed after their foreclosures were complete. However, Motz cited the ‘doctrine of claims preclusion’ in Maryland law in ruling against the plaintiffs.

‘The fact that plaintiffs may not have been aware of the existence of their claims during the litigation of the previous action does not render the doctrine of claims preclusion from being applicable 'where the means of obtaining such knowledge existed and the knowledge could have been obtained with ordinary diligence,'’ Motz wrote in his decision.

The plaintiffs and their attorneys declined to comment.

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