Montgomery
Co. Record of Deeds v. MERSCORP – 3d Cir. – August 3, 2015
In 2011,
Appellee Nancy J. Becker, the Recorder of Deeds for Montgomery County,
Pennsylvania , brought this action on behalf of herself and other similarly
situated county recorders of deeds in Pennsylvania against MERSCORP, Inc. and
Mortgage Electronic Registration Systems, Inc., entities associated with the
MERS System (“MERS”), a national electronic registry system for mortgage loans.
The Recorder sought to recover millions of dollars in unpaid recording
fees, contending that the MERS entities have unlawfully failed to pay such fees
in violation of Pennsylvania law, 21 Pa. Cons. Stat. Ann. § 351. Because we
conclude that § 351 does not create a duty to record all land conveyances, a
key premise on which the Recorder’s claims were and are based, we will reverse.
We
will also deny the Recorder’s motion for certification of two issues to the
Supreme Court of Pennsylvania. The answer to the issue of state law that
decides this case, at least before us, is so clear that we would be abdicating
our responsibilities by punting. We recognize, of course, that were the Supreme
Court at some point to answer the question differently, that decision would
control. Cf. County of Ramsey v. MERSCORP Holdings, Inc., 776
F.3d 947, 951 (8th Cir. 2014) (declining to certify issue to the state’s
highest court); Union County, Ill. v. MERSCORP, Inc., 735 F.3d 730, 735
(7th Cir. 2013) (same).
