Last month brought another round of sanctions for Minnesota bankruptcy attorney William Butler for continuing to bring the same argument in lawsuits on behalf of homeowners that has repeatedly tossed out by judges.
This time U.S. District Court Judge Donovan Frank awarded sanctions against Butler to reimburse Mortgage Electronic Registration Systems (MERS) for attorney fees and court costs. The order was dated Nov. 30.
Butler must pay $21,077.97 in attorney fees and costs incurred by Bank of America and MERS and Frank also granted an award of $24,374 in attorney fees and costs requested by other defendants.
Butler filed a case on behalf of 23 borrowers challenging their foreclosures. The suit alleged the chain of title to each of their mortgages was broken and the defendants lacked authority to foreclose under Minnesota law because they did not hold the borrowers’ original promissory notes.
That argument has been shot down several times in U.S. Bankruptcy Court and Butler has been sanctioned before for continuing to make it. This sanction is at least the sixth time Butler has been penalized for similar matters. He was hit with $50,000 in sanctions in March and $75,000 in June in Minnesota federal court.
Frank said additional sanctions against Butler were warranted because his conduct violated the minimum standards of professional conduct.