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Hogan Lovells Secures Victory in New York Supreme Court Case Upholding Broad Powers for MERS as Lender’s Agent

16 March 2011

NEW YORK, 16 March 2011 – Hogan Lovells announced today that the Supreme Court of the State of New York, County of Bronx found in favor of the lender in Bank of New York v. Sachar. The court held that the mortgage document in question granted broad powers to MERS to act as an agent for the Bank of New York.


The court said that the Bank of New York has standing to foreclose based on the MERS assignment and the delivery of the note. In his ruling, Judge Lucindo Suarez of the New York Supreme Court concluded that the bank showed sufficient documentation to prove its standing.


“The ruling holds that MERS does have authority to transfer mortgages giving the lenders the right to foreclose on those that have been transferred through MERS,” said Allison Schoenthal, a litigation partner at Hogan Lovells. “We are proud to have secured a victory on behalf of our client. This is an important victory for lenders.”


This year alone, the standing of MERS to act as the mortgagee and nominee for the lender have been similarly validated in courts in California, Georgia, Kansas, Massachusetts, Michigan, and New Hampshire.


The Hogan Lovells US LLP team included Allison Schoenthal, David Dunn, Victoria McKenney, and Holly Amorosana.


About Hogan Lovells


Hogan Lovells combines the breadth of business-oriented legal advice and high-quality service that clients have come to expect through working with its two founding firms – Hogan & Hartson and Lovells.

“Hogan Lovells” or the “firm” refers to the international legal practice comprising Hogan Lovells International LLP, Hogan Lovells US LLP, Hogan Lovells Worldwide Group (a Swiss Verein), and their affiliated businesses, each of which is a separate legal entity. Hogan Lovells International LLP is a limited liability partnership registered in England and Wales with registered number OC323639. Registered office and principal place of business: Atlantic House, Holborn Viaduct, London EC1A 2FG. Hogan Lovells US LLP is a limited liability partnership registered in the District of Columbia.

The word "partner" is used to refer to a member of Hogan Lovells International LLP or a partner of Hogan Lovells US LLP, or an employee or consultant with equivalent standing and qualifications, and to a partner, member, employee or consultant in any of their affiliated businesses who has equivalent standing. Rankings and quotes from legal directories and other sources may refer to the former firms of Hogan & Hartson LLP and Lovells LLP. Where case studies are included, results achieved do not guarantee similar outcomes for other clients.
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