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This time ordered to pay attorney fees

Attorney William Butler hit with more sanctions

Attorney William Butler has been hit with another round of Rule 11 sanctions.

This time, U.S. District Court Judge David Doty ordered Butler to pay for the attorney fees for Wells Fargo Bank, Mortgage Electronic Registration Systems, Inc., Merscorp Inc and Federal National Mortgage Association.

Last month, month Doty’s colleague U.S. District Court Judge Patrick Schlitz ordered Butler to pay $50,000 in sanctions for filing repeated frivolous lawsuits and delaying cases for the purpose of collecting fees from clients.

Butler has brought the same argument in a series of mortgage cases. He sues on behalf of homeowners for the common industry practice of securitizing mortgages by having them held by and recorded in the name of a nominal mortgagee such as MERS rather than the holder of the promissory note. This allows the mortgages to be repeatedly sold without each sale being recorded on the title.

The plaintiffs argued that if the entity that holds their mortgage, usually MERS, is not the entity that holds the promissory note, the mortgage and the foreclosure of the mortgage is invalid.

Butler’s arguments have been dismissed by the Minnesota Supreme Court and the 8th Circuit Court of Appeals.

In his order, Doty outlines his frustration with Butler’s tactics.

“Butler presents no argument for reversing or modifying that law, and instead argues that it does not apply. Despite the repeated dismissal of Butler’s actions in this district and the Eighth Circuit, he continues to file actions, congesting the docket of the court, taking resources away from cases that have merit and charging clients to pursue meritless claims. These frivolous actions have, at best, the result of allowing Butler’s clients to remain in their homes (or continue to own their rental properties) without payment. In fact, the real outcome for plaintiffs is to needlessly prolong the period of financial and housing uncertainty brought on by their failure to meet their loan-payment obligations.”

Doty said he was not imposing additional monetary sanctions on Butler due to Schiltz’s recent order. Instead he asked the defendants to file affidavits that outlined how much they have spent as a result of Butler’s “frivolous claims.”

A copy of Doty’s order is available here.

13 comments

  1. Banks are protected in Minnesota. Wonder what stocks are in U.S. District Court Judge David Doty’s Pension Fund? Rule of law seems to only apply against homeowners there in Minnesota. Banks can use Fraud and Forgery…it is now official.
    Did Judge take an oath of office? Did he swear to uphold the Constitution of the United States? Does he remember the part about “due process” or the Fourth Amendment? What a shame that those in Minnesota have had their rights set aside for the benefit of the banks and “servicers” who steal homes using FRAUD and FORGERY.

  2. Ban Kkiller, you are clueless, I suppose you believe taxes are unconstitutional and there is no need to display a license plate on your vehicle? We’ve all heard those bogus arguments before, you take a mortgage out…you pay it back or you lose your property.

    I hope this William Butler is not only sanctioned, but should be severely disciplined by the state bar. The saying should be \once a mistake, twice a disbarred lawyer\

  3. Mr. Butler’s situation is regrettable, but he bears responsibility for ignoring clear judicial warning to back off of his over-the-top allegations, tactics and conduct. He is an officer of the court and it doesn’t take a huge leap to connect his litigation approach to the self-admitted baseless and potentially libelous allegations against a federal judge in the comment above. Lawyers have obligations that are in tension with one-another. Zeolous representation MUST be tempered with the willingness to pour cold water on clients’ fevered imaganations of conspiracy and judicial corruption, especially when they are clearly wrong. Mr. Butler apparently found that didn’t fit his business model. Telling his clients only what they want to hear can be enormously profitable, especially in this area of law. That is not heroic. That is no better than what he is accusing his opponents of. Minnesota law is heavily tilted in favor of lenders. That is unfortunate, in my opinion. But, that doesn’t make it not the law. That doesn’t make it corrupt. Putting your objections in ALL CAPS changes nothing.

  4. Hey Bank Killer, ever heard of stare decisis? Judge Schiltz and Judge Doty didn’t decide the Jackson v. MERS case or the Stein case. They both did take an oath of office and part of upholding the Constitution is abiding by higher court precedent–a concept Mr. Butler obviously has not learned.

    The apologists for the people who borrowed hundreds of thousands of dollars from banks and now refuse to pay it back always like to throw around that banks are all evil. What evidence do you have that there was any fraud or forgery involved in this case? What part of due process and the 4th Amendment have been violated in your opinion? Do you even understand the legal nuances involved and the fact that promissory note does not contain the power of sale–the mortgage does?

    Finally, the rule of law does apply equally to both banks and homeowners. The issue is the homeowners signed contracts to repay loans and now refuse to do so and the banks are merely trying to retake the collateral through a judicial process setup by the MN legislature. Just because you once saw a special on 60 Minutes about how some banks forged documents or lost documents doesn’t mean that every loan that has been issued in the last 10 years is in the same boat. The logic of “you people” would make Aristotle roll over in his grave: (1) Some banks engaged in fraud; (2) I can’t repay my loan because of my own personal financial hardship; (3) My bank MUST have engaged in fraud. Coaching this argument in terms of a “show me the note” defense does not change the fact that the argument is flawed, Butler’s legal position is flawed, and the banks have the absolute right to retake the property when people stop paying their loans.

  5. MR BUTLER IS A HERO LOOKS LIKE THE JUDGES IN THIS STATE OF MINN COULD CARE LESS ABOUT HOMEOWNERS
    OR BRAVE ATTORNEY THAT TRY TO DEFEND MINN HOMEOWNERS.
    shame on you minn judges for rubber stamping bank fraud

  6. I am afraid the judges are ruling in favor of MERS because of a bad ruling. It is unfortunate that Mr. Butler is taking the beating for trying to defend the rule of law via assault on title, but the Minnesota Supremes, however mistaken in their reasoning, have sided with MERS and the banks at the expense of their own citizens.
    @ Mr. Sobcheck, please embarrass yourself further with the “you owe the debt” argument to rationalize perjury, wire fraud, and racketeering using the courts and legislature to do the Devil’s bidding. LIBOR manipulation forcing subprime default triggered the contrived crisis that has led to the extraction of trillions of dollars to offshore entities.
    Enough is enough.

  7. Are you this stupid?

    The owner of the note/mortgage absolutely has the right to reclaim the property through a legal foreclosure. Do above commenters really believe that the rest of the country, with no states as the exception, EXCEPT Minnesota, have property records in total shambles, but that Minnesota was immune from this massive fraud? Really? That’s not only unrealistic, but ridiculous. Minnesota has the same fraud going on that all states have on, YES, the majority of securitized loans made- this judge should be thrown out for harassing a lawyer who (like an increasing number of lawyers in all states) has figured out that the law is being broken by the banks, over and over, at the expense of the rights of all Americans, not just those with mortgage payment issues. OPEN YOUR EYES.

  8. Maybe you should check out the Audit done by the inspector general on Wells Fargo..
    http://www.hudoig.gov/Audit_Reports/2012-AT-1801.pdf

    There was ALOT of fraud that has happened in this whole mess. Can’t comment on this case but chances are there was some wrong doing by some one. As to Some of the comments.. yes they took out a mortgage yes they need to pay it back.. but should they really have to pay for the inflated mortgage that was given to them so the banks could make more profit… Taking the price of a $150,000.00 home and claiming it was worth $350,000.00 was FRAUD and most of the people that I know just want to pay what is fair… The bank’s were the ones that started all this and they need to restructure the mortgages to reflect the fair market value of the homes. No one should get their house for free but we should not have to pay for the fraud that we were put through…

  9. kay sieverding

    I was ordered to pay $100 K in attorney fees but there was no explanation why.
    http://kaysieverding.wordpress.com/2012/05/07/intimidation-and-retaliatio/

  10. Fraudulent documents are being submitted all over the U.S. by Attorneys, who should be criminally prosecuted ! Wells Fargo Bank, N.A. is by far the KING of FRAUD in this country with Bank of America by its side in second. The citizens of this country need to really take it to the Federal Government in huge protests with huge numbers of people turning out. Hunt Leibert Jacobson P.C. attorneys at law (crooks violating law) is one law firm to really watch out for. Wells Fargo Bank, N.A. was just denied summary judgment against us (for liability) Lets get it on. Sign Me Up !

  11. William Butler was just sanction again by federal
    Judge Ann Montgomery this time for $75,000 dollars
    say that this new case was another show me the note,
    the bank are now trying to file sanction against the client.

    In the last week at least 20 or more cases have been
    dismissed by the Minnesota Federal Courts. and they have
    been saying some very hurt thing to these attorney as if
    they are completely stupid this is what she said about
    butler in her opinion

    Butler’s Complaint in this case is “deja vu all over again
    Yogi Berra, Yogi-isms, Yogi Berra Official Web Site,
    http://yogiberra.com/yogi-isms.html she also had this link
    in her opinion.

    most of the complaint butler filed have been going through
    the court and he has tried to amend them the amended cases were dismissed with prejudice.

    The court don’t want to know the truth seem as if they do
    judge the book by its cover. you have to prove everything
    even if they already know the answer.
    As far as i know three federal have sanction butler $175,000 dollars the does not count the attorneys fees he has to pay the banks attorney it seems that they are trying to run him out of business.

  12. I think that this paticular post lacks SIGNIFICANT detail as to what has actually occured with Attorney Butler’s cases. First, it is important to understand that there are currently two cases, with the exact same claims, proceeding in state courts– yes the bank defendants brought the same motions to dismiss and in one case a motion for Rule 11 santions. The banks lost on both counts- so the banks starting removing the cases o federal court because, guess what, the federal courts will not only dismiss the cases, they will award sanctions.
    If one reads the complaints and the motions, one will discover that the bank attempting to foreclose on the mortgages does not own the mortgage because the mortgage was assigned to another entity. These are not “show me the note” claims no matter what contortions the banks and the courts go through to make them so.
    Not ONE of the complaints alleges that the plaintiffs should get a free house, not one. Instead, Plaintiffs are saying that a bank that has no interest in the property is foreclosing– this is against Minnesota law. Attorney Butler is not a villian and not an idiot, he is presenting claims that are viable and the federal court in this state is rejecting them, despite the fact that our own state courts have found the claims to have merit. I am not saying that there is bias in the federal system, but Judge Doty, in his decision bemoaned the fact that the plaintiffs were attacking our fine banking system. Huh, any wonder that the federal court system has been called the bank’s “playground”?

  13. Butler fined 10k for contempt and rule 11 coming in july. He is a moron. A liar. A fool. Broke.

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