OUTRAGEOUS: Legal decision has attorneys talking in Minnesota


OUTRAGEOUS: Legal decision has attorneys talking in Minnesota

OUTRAGEOUS: Legal decision has attorneys talking in Minnesota

This is wrong in many levels. Make sure you have a barf bag handy!!


MPR News received a tip about a complicated story involving an attorney, a judge and the state’s foreclosure laws.

U.S. District Judge Patrick J. Schiltz has taken the unusual step of sanctioning Minneapolis attorney William Butler for filing what the judge calls frivolous show-me-the-note actions. That’s where a homeowner facing foreclosure argues that because the mortgage and note are held by different entities, the home’s mortgage or foreclosure on that mortgage is invalid.

Separating the note from the mortgage contributed to the practice of mortgage securitization, one culprit in the housing bubble and crash.

Some courts in other states have ruled in favor of homeowners in cases like these. But here, Judge Schiltz says it’s been established under Minnesota law (he references Jackson v. Mortgage Electronic Registration Systems, Inc.) that the entity that holds the mortgage can foreclose on the mortgage even if that entity does not also hold the note. Showing the note is not necessary under foreclosure by advertisement, which is how most of Minnesota’s foreclosures are processed.

Butler, of Butler Liberty Law, LLC, brought nearly 30 of such cases on behalf of several hundred people and apparently never won.

Among other things, Judge Schiltz alleges Butler solicited homeowners facing foreclosure for frivolous cases and then “judge shopped” for sympathetic judges while his cases dragged on for months, allowing him to collect fees from clients and allowing those clients to continue living in their homes rent-free.

As punishment, the court ordered Butler to pay a $50,000 penalty and cover attorneys fees for some of the largest firms representing clients like GMAC Mortgage, Deutsche Bank, The Bank of New York and others. People familiar with the case expect these penalties to rise well into the six figures. Butler also risks losing his license to practice law.


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7 Responses to “OUTRAGEOUS: Legal decision has attorneys talking in Minnesota”

  1. nydeemarie says:

    I could be mistaken, but I think there is a Supreme Court decision which said;

    If you have relied on prior decisions of the supreme Court, you have the perfect defense for willfulness. Owen v. Independence, 100 S.C.T. 1398, 445 US 622 …

    Is it a rationale defense against frivolous as well?

  2. nydeemarie says:

    If when the states requested to join the union they promised to provide a constitutional floor, how did they then go on to waive certain established rights in due process and property?

    (To do such, was often prohibited by their original constitutions).

    I understand that the states had the authority to sign “often times, limited” waivers when they decided to receive and administer federal funds for medicaid and such, but individual due process, property rights, clerk functions, etc.??

    Something went horribly wrong…

  3. I hope this gives this attorney incentive to fight this all the way to the U.S. Supreme Court. Article 9UCC law and the Carpenter V Longan 1874 U.S. Supreme Court decision, distingquished standing law, states the note can not be separated form the deed of trust or it is VOID and nullified and article III of the U.S. constitutiona and more Constitutional law makes this very wrong. Our first Amendment. Our Bill of Rights. We are in a lawless land, with Judges Breaching their oath of office. Judges that need to be held accountable, not this attorney. Hopefully this attorney will hold this judge accountable. This judge is a criminal, warring against the U.S. Constitution, and so many of the judges are. Thank goodness for decent judges like judge Schack, Rakoff, Boyko, and a few others I can not remember the names of. And a few U.S Appeals court justice. I hope this attorney takes this judge to teh higher courts and puts him in jail for this lawless unconstitutional judgment.

  4. nydeemarie says:

    Standards applied to a determination of frivolous….

    Denton v. Hernandez, 504 US 25 – Supreme Court 1992

  5. DANIELA says:


  6. Jack Baker says:

    “allowing those clients to continue living in their homes rent-free.’
    When will the press stop printing this lie? Paying your bills, taking care of the house, and trying to work with the Bank to keep the house is not “rent-free” on any level.

  7. DantheGrey says:

    How long will it take before the U.S. Supreme Court grants cert. to resolve all of the inconsistent lower court decisions coming out of both the State and Federal Court systems and then the question that begs to be asked is do we want that decission from the current 9 justices sitting.

    In light of the decissions coming from the Supreme Court these days, upsetting 200 plus years of precendence, without so much as an indication as to why the historical past decissions of the court are no longer to be considered valid, maybe we’re better off taking what few hard won victories we have to date and continue in the smaller arenas.

    Everywhere I turn these days I see the “We The People” having to turn to constitutional amendment efforts in an attempt to impose the will of the people on the legislative and the judicial branch of our government.

    I recently had a District Court Judge inform me that his hands were tied in regards to a foreclosure hearing by the recent amendments to my states foreclosure statutes and, that if i had issues with the statutes I should take them up with that government body.

    Since when are a judges hands tied by legislative acts-I thought the legislative branch wrote the laws and the courts determined what those laws mean and how they are to be applied. If legislation ties the hands of the courts then those laws are, per se, unconstitutional.

    Our entire form of govenment has become unconstitutional because there no longer exists three independent branches of the government.

    I have to give credit to those justices, lawyers (can’t believe I said that), and others who continue to buck the system and stand for the rule of law versus the rule of the BTBTF.

    The collapse is only one more major failure away and it won’t have to come from within our borders to bring the whole house of cards crashing down, it’s inevitable at this point and only those with something left to lose can’t see the reality of the world wide situation.

    So sad but so true.



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