UNI1LD S1A1LS DIS1kIC1 CCUk1

ICk 1nL WLS1LkN DIS1kIC1 CI kLN1UCk¥
LCUISVILLL DIVISICN
£/ectronico//y li/ed




CP8lS1lAn CCun1? CLL8k, by and Lhrough
lLs CounLy Clerk, MlCPALL kLM,
WASPlnC1Cn CCun1? CLL8k, by and Lhrough
lLs CounLy Clerk, CLLnn 8LACk, on behalf
of Lhemselves and all oLhers slmllarly slLuaLed,

ÞlalnLlffs,

v.

MC81CACL LLLC18CnlC 8LClS18A1lCn S?S1LMS,
lnC., ML8SCC8Þ, lnC., 8Ank Cl AML8lCA, n.A.,
CCC MC81CACL CC8ÞC8A1lCn, CPASL PCML
MC81CACL CC8ÞC8A1lCn, Cl1lMC81CACL, lnC.,
CC8ln1PlAn MC81CACL CC8ÞC8A1lCn,
LvL8PCML MC81CACL CCMÞAn?,
CMAC 8LSluLn1lAL lunulnC CC8ÞC8A1lCn,
CuA8An1? 8Ank, PS8C llnAnCL CC8ÞC8A1lCn,
ML88lLL L?nCP C8Lul1 CC8ÞC8A1lCn,
nA1lCnWluL AuvAn1ACL MC81CACL CCMÞAn?,
Sun18uS1 MC81CACL, lnC., !ÞMC8CAn
CPASL & CC., WLLLS lA8CC 8Ank, n.A., and
WMC MC81CACL CC8ÞC8A1lCn,

uefendanLs.






Case No.:





INDIVIDUAL AND
CLASS AC1ICN CCMÞLAIN1

DLMAND ICk IUk¥ 1kIAL

CCML nCW ÞlalnLlffs, on behalf of Lhemselves and all oLhers slmllarly slLuaLed, by and
Lhrough underslgned counsel, for Lhls cause of acLlon agalnsL uefendanLs, and sLaLe as follows:


5:11CV-72-R
Case 5:11-cv-00072-JHM Document 1 Filed 04/25/11 Page 1 of 15 PageID #: 1
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ÞAk1ILS
1. ÞlalnLlff, ChrlsLlan CounLy Clerk, by and Lhrough lLs CounLy Clerk, Mlchael kem,
ls locaLed ln Lhe ClLy of Popklnsvllle, CounLy of ChrlsLlan, CommonwealLh of kenLucky, and ls
maklng clalms ln lLs lndlvldual capaclLy and as a represenLaLlve of a class of slmllarly slLuaLed
counLy clerks ln Lhe CommonwealLh of kenLucky.
2. ÞlalnLlff, WashlngLon CounLy Clerk, by and Lhrough lLs CounLy Clerk,
Clenn 8lack, ls locaLed ln Lhe ClLy of Sprlngfleld, CounLy of WashlngLon, CommonwealLh of
kenLucky, and ls maklng clalms ln lLs lndlvldual capaclLy and as a represenLaLlve of a class of
slmllarly slLuaLed counLy clerks ln Lhe CommonwealLh of kenLucky.
3. uefendanL, MorLgage LlecLronlc 8eglsLraLlon SysLems, lnc. (ºML8S"), ls a forelgn
corporaLe enLlLy creaLed ln or abouL 1988, seL up under Lhe laws of uelaware, and ls a
naLlonal organlzaLlon LhaL conducLs buslness ln Lhe CommonwealLh of kenLucky. uefendanL
has lLs prlnclpal place of buslness locaLed aL 1818 Llbrary SLreeL, 8esLon, vlrglnla 20191. 1he
deslgnaLed reglsLered agenL ls C1 CC8ÞC8A1lCn S?S1LM, 306 W. Maln SLreeL, SulLe S12,
lrankforL, kenLucky 40601. uefendanL, Merscorp, lnc., clalms Lo be Lhe sole shareholder ln an
enLlLy by Lhe name of MorLgage LlecLronlc 8eglsLraLlon SysLems, lnc. (ºML8S"), and has lLs
prlnclpal place of buslness locaLed aL 1S9S Sprlng Plll 8oad, SulLe 310, vlenna, vlrglnla.
4. uefendanL, 8ank of Amerlca, n.A., ls a forelgn corporaLe enLlLy whlch, accordlng
Lo www.merslnc.org, ls a shareholder ln ºML8S." As a naLlonal organlzaLlon, lL conducLs
buslness ln Lhe CommonwealLh of kenLucky, and lL ls Lherefore approprlaLe LhaL lL be requlred
Lo defend Lhls sulL ln Lhls CourL. uefendanL ls a forelgn corporaLlon LhaL ls seL up under Lhe
Case 5:11-cv-00072-JHM Document 1 Filed 04/25/11 Page 2 of 15 PageID #: 2
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laws of uelaware, wlLh lLs prlnclpal place of buslness locaLed aL 100 norLh 1ryon SLreeL,
CharloLLe, norLh Carollna 282SS.
S. uefendanL, CCC MorLgage CorporaLlon, ls a forelgn corporaLe enLlLy whlch,
accordlng Lo www.merslnc.org, ls a shareholder ln ºML8S." As a naLlonal organlzaLlon, lL
conducLs buslness ln Lhe CommonwealLh of kenLucky, and lL ls Lherefore approprlaLe LhaL lL be
requlred Lo defend Lhls sulL ln Lhls CourL. uefendanL ls a forelgn corporaLlon LhaL ls seL up
under Lhe laws of Chlo, wlLh lLs prlnclpal place of buslness locaLed aL 10S61 1elegraph 8oad,
Clen Allen, vlrglnla 230S9. 1he deslgnaLed reglsLered agenL ls CSC-LAW?L8S lnCC8ÞC8A1lnC
SL8vlCL CCMÞAn?, whlch ls locaLed aL 421 W. Maln SLreeL, lrankforL, kenLucky 40601.
6. uefendanL, Chase Pome MorLgage CorporaLlon, ls a forelgn corporaLe enLlLy
whlch, accordlng Lo www.merslnc.org, ls a shareholder ln ºML8S." As a naLlonal organlzaLlon, lL
conducLs buslness ln Lhe CommonwealLh of kenLucky, and lL ls Lherefore approprlaLe LhaL lL be
requlred Lo defend Lhls sulL ln Lhls CourL. uefendanL ls a forelgn corporaLlon LhaL ls seL up
under Lhe laws of uelaware, wlLh lLs prlnclpal place of buslness aL 491S lndependence Þarkway,
1ampa, llorlda 33634.
7. uefendanL, ClLlMorLgage, lnc., ls a forelgn corporaLe enLlLy whlch, accordlng Lo
www.merslnc.org, ls a shareholder ln ºML8S." As a naLlonal organlzaLlon, lL conducLs buslness
ln Lhe CommonwealLh of kenLucky, and lL ls Lherefore approprlaLe LhaL lL be requlred Lo defend
Lhls sulL ln Lhls CourL. uefendanL ls a forelgn corporaLlon LhaL ls seL up under Lhe laws of
new ?ork, wlLh lLs prlnclpal place of buslness locaLed aL 1000 1echnology urlve, MS 140,
C'lallon, Mlssourl 63304. 1he deslgnaLed reglsLered agenL ls C1 CC8ÞC8A1lCn S?S1LM,
whlch ls locaLed aL 306 W. Maln SLreeL, SulLe S12, lrankforL, kenLucky 40601.
Case 5:11-cv-00072-JHM Document 1 Filed 04/25/11 Page 3 of 15 PageID #: 3
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8. uefendanL, CorlnLhlan MorLgage CorporaLlon, ls a forelgn corporaLe enLlLy
whlch, accordlng Lo www.merslnc.org, ls a shareholder ln ºML8S." As a naLlonal organlzaLlon, lL
conducLs buslness ln Lhe CommonwealLh of kenLucky, and lL ls Lherefore approprlaLe LhaL lL be
requlred Lo defend Lhls sulL ln Lhls CourL. uefendanL ls a forelgn corporaLlon LhaL ls seL up
under Lhe laws of Mlsslsslppl, wlLh lLs prlnclpal place of buslness aL S700 8roadmoor, SulLe S00,
Mlsslon, kansas 66202.
9. uefendanL, LverPome MorLgage Company, ls a forelgn corporaLe enLlLy whlch,
accordlng Lo www.merslnc.org, ls a shareholder ln ºML8S." As a naLlonal organlzaLlon, lL
conducLs buslness ln Lhe CommonwealLh of kenLucky, and lL ls Lherefore approprlaLe LhaL lL be
requlred Lo defend Lhls sulL ln Lhls CourL. uefendanL ls a forelgn corporaLlon LhaL ls seL up
under Lhe laws of llorlda, wlLh lLs prlnclpal place of buslness locaLed aL 8100 naLlons Way,
!acksonvllle, llorlda 322S6. 1he deslgnaLed reglsLered agenL ls C1 CC8ÞC8A1lCn S?S1LM,
whlch ls locaLed aL 306 WesL Maln SLreeL, SulLe S12, lrankforL, kenLucky 40601.
10. uefendanL, CMAC 8esldenLlal lundlng CorporaLlon, ls a forelgn corporaLe enLlLy
whlch, accordlng Lo www.merslnc.org, ls a shareholder ln ºML8S." As a naLlonal organlzaLlon, lL
conducLs buslness ln Lhe CommonwealLh of kenLucky, and lL ls Lherefore approprlaLe LhaL
lL be requlred Lo defend Lhls sulL ln Lhls CourL. uefendanL ls a forelgn corporaLlon LhaL ls
seL up under Lhe laws of uelaware, wlLh lLs prlnclpal place of buslness locaLed aL
8400 normandale Lake 8lvd., Mlnneapolls, MlnnesoLa SS437. 1he deslgnaLed reglsLered agenL
ls CSC-LAW?L8S lnCC8ÞC8A1lnC SL8vlCL CCMÞAn?, 421 W. Maln SL., lrankforL, k? 40601.
11. uefendanL, CuaranLy 8ank, ls a forelgn corporaLe enLlLy whlch, accordlng Lo
www.merslnc.org, ls a shareholder ln ºML8S." As a naLlonal organlzaLlon, lL conducLs buslness
Case 5:11-cv-00072-JHM Document 1 Filed 04/25/11 Page 4 of 15 PageID #: 4
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ln Lhe CommonwealLh of kenLucky, and lL ls Lherefore approprlaLe LhaL lL be requlred Lo defend
Lhls sulL ln Lhls CourL. uefendanL ls a forelgn corporaLlon seL up under Lhe laws of uelaware,
wlLh lLs prlnclpal place of buslness aL 4000 WesL 8rown ueer 8d, 8rown ueer, Wlsconsln S3209.
12. uefendanL, PS8C llnance CorporaLlon, ls a forelgn corporaLe enLlLy whlch,
accordlng Lo www.merslnc.org, ls a shareholder ln ºML8S." As a naLlonal organlzaLlon, lL
conducLs buslness ln Lhe CommonwealLh of kenLucky, and lL ls Lherefore approprlaLe LhaL lL be
requlred Lo defend Lhls sulL ln Lhls CourL. uefendanL ls a forelgn corporaLlon LhaL ls seL up
under Lhe laws of uelaware, wlLh lLs prlnclpal place of buslness aL 26S2S n. 8lverwoods 8lvd.,
MeLLawa, llllnols 6004S. 1he deslgnaLed reglsLered agenL ls C1 CC8ÞC8A1lCn S?S1LM, whlch ls
locaLed aL 306 W. Maln SLreeL, SulLe S12, lrankforL, kenLucky 40601.
13. uefendanL, Merrlll Lynch CredlL CorporaLlon, ls a forelgn corporaLe enLlLy whlch,
accordlng Lo www.merslnc.org, ls a shareholder ln ºML8S." As a naLlonal organlzaLlon, lL
conducLs buslness ln Lhe CommonwealLh of kenLucky, and lL ls Lherefore approprlaLe LhaL lL be
requlred Lo defend Lhls sulL ln Lhls CourL. uefendanL ls a forelgn corporaLlon LhaL ls seL up
under Lhe laws of uelaware, wlLh lLs prlnclpal place of buslness aL 4804 ueer Lake urlve LasL,
!acksonvllle, llorlda 32246. 1he deslgnaLed reglsLered agenL ls C1 CC8ÞC8A1lCn S?S1LM,
whlch ls locaLed aL 306 W. Maln SLreeL, SulLe S12, lrankforL, kenLucky 40601.
14. uefendanL, naLlonwlde AdvanLage MorLgage Company, ls a forelgn corporaLe
enLlLy whlch, accordlng Lo www.merslnc.org, ls a shareholder ln ºML8S." As a naLlonal
organlzaLlon, lL conducLs buslness ln Lhe CommonwealLh of kenLucky, and lL ls Lherefore
approprlaLe LhaL lL be requlred Lo defend Lhls sulL ln Lhls CourL. uefendanL ls a forelgn
corporaLlon LhaL ls seL up under Lhe laws of lowa, wlLh lLs prlnclpal place of buslness locaLed aL
Case 5:11-cv-00072-JHM Document 1 Filed 04/25/11 Page 5 of 15 PageID #: 5
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1100 LocusL SLreeL, uepL. 2009, ues Molnes, lowa S0391. 1he deslgnaLed reglsLered agenL ls
C1 CC8ÞC8A1lCn S?S1LM, 306 W. Maln SLreeL, SulLe S12, lrankforL, kenLucky 40601.
1S. uefendanL, Sun1rusL MorLgage, lnc., ls a forelgn corporaLe enLlLy whlch,
accordlng Lo www.merslnc.org, ls a shareholder ln ºML8S." As a naLlonal organlzaLlon, lL
conducLs buslness ln Lhe CommonwealLh of kenLucky, and lL ls Lherefore approprlaLe LhaL lL be
requlred Lo defend Lhls sulL ln Lhls CourL. uefendanL ls a forelgn corporaLlon LhaL ls seL up
under Lhe laws of vlrglnla, wlLh lLs prlnclpal place of buslness locaLed aL 901 Semmes Avenue,
8lchmond, vlrglnla 23224. 1he deslgnaLed reglsLered agenL ls CSC-LAW?L8S lnCC8ÞC8A1lnC
SL8vlCL CCMÞAn?, whlch ls locaLed aL 421 W. Maln SLreeL, lrankforL, kenLucky 40601.
16. uefendanL, !ÞMorgan Chase & Co., ls a forelgn corporaLe enLlLy whlch,
accordlng Lo www.merslnc.org, ls a shareholder ln ºML8S." As a naLlonal organlzaLlon, lL
conducLs buslness ln Lhe CommonwealLh of kenLucky, and lL ls Lherefore approprlaLe LhaL lL be
requlred Lo defend Lhls sulL ln Lhls CourL. uefendanL ls a forelgn corporaLlon LhaL ls seL up
under Lhe laws of uelaware, wlLh lLs prlnclpal place of buslness locaLed aL 270 Þark Avenue,
new ?ork, new ?ork 10017. 1he deslgnaLed reglsLered agenL ls C1 CC8ÞC8A1lCn S?S1LM,
whlch ls locaLed aL 306 W. Maln SLreeL, SulLe S12, lrankforL, kenLucky 40601.
17. uefendanL, Wells largo 8ank, n.A., ls a forelgn corporaLe enLlLy whlch, accordlng
Lo www.merslnc.org, ls a shareholder ln ºML8S." As a naLlonal organlzaLlon, lL conducLs
buslness ln Lhe CommonwealLh of kenLucky, and lL ls Lherefore approprlaLe LhaL lL be requlred
Lo defend Lhls sulL ln Lhls CourL. uefendanL ls a forelgn naLlonal bank LhaL ls seL up under Lhe
laws of unlLed SLaLes, wlLh lLs prlnclpal place of buslness aL 464 Callfornla SLreeL, San lranclsco,
Case 5:11-cv-00072-JHM Document 1 Filed 04/25/11 Page 6 of 15 PageID #: 6
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Callfornla 94104. 1he deslgnaLed reglsLered agenL ls CSC-LAW?L8S lnCC8ÞC8A1lnC SL8vlCL
CCMÞAn?, whlch ls locaLed aL 421 W. Maln SLreeL, lrankforL, kenLucky 40601.
18. uefendanL, WMC MorLgage CorporaLlon, ls a forelgn corporaLe enLlLy whlch,
accordlng Lo www.merslnc.org, ls a shareholder ln ºML8S." As a naLlonal organlzaLlon, lL
conducLs buslness ln Lhe CommonwealLh of kenLucky, and lL ls Lherefore approprlaLe LhaL lL be
requlred Lo defend Lhls sulL ln Lhls CourL. uefendanL ls a forelgn corporaLlon LhaL ls seL up
under Lhe laws of Callfornla, wlLh lLs prlnclpal place of buslness aL 3100 1hornLon Avenue,
8urbank, Callfornla 91S04.
IUkISDIC1ICN AND VLNUL
19. 1hls CourL has [urlsdlcLlon over Lhls acLlon pursuanL Lo 28 u.S.C. § 1332(d)(2)
because Lhe maLLer ln conLroversy exceeds Lhe sum or value of $S mllllon, excluslve of lnLeresL
and cosLs, and lL ls a class acLlon broughL by a clLlzen of a SLaLe LhaL ls dlfferenL from Lhe
SLaLe where uefendanL ls lncorporaLed or does buslness, and pursuanL Lo 28 u.S.C. § 1331
because lL brlngs clalms LhaL arlse under Lhe laws of Lhe unlLed SLaLes.
20. 1hls CourL's venue over Lhls acLlon ls proper under 28 u.S.C. § 1391(a)(2)
because evenLs or omlsslons glvlng rlse Lo Lhe clalms asserLed hereln occurred ln Lhls dlsLrlcL.
IAC1S
21. 1he law of Lhe CommonwealLh of kenLucky requlres LhaL all asslgnmenLs of a
morLgage musL be flled wlLh Lhe CounLy Clerk's Cfflce. k8S § 382.360(3). Lach counLy ls
enLlLled Lo and does charge a fee for Lhese asslgnmenLs so LhaL Lhese asslgnmenLs are properly
recorded. 8y example, Lhe recordlng fee for asslgnmenLs ln ChrlsLlan CounLy ls approxlmaLely
1hlrLeen uollars ($13.00).
Case 5:11-cv-00072-JHM Document 1 Filed 04/25/11 Page 7 of 15 PageID #: 7
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22. uurlng Lhe 1990s, lenders began securlLlzlng morLgage loans. 1hls process
resulLed (or would have resulLed) ln addlLlonal recordlng fees ln LhaL a loan could be sold and
asslgned numerous Llmes. Several large parLlclpanLs ln Lhe morLgage lndusLry, lncludlng
Lhe uefendanLs, esLabllshed ML8S ln order Lo avold Lhe requlslLe paymenL of recordlng fees Lo
CounLy Clerks for asslgnmenLs of morLgage loans.
23. ML8S adverLlses LhaL by uslng lLs ºsysLem," parLlclpanLs ellmlnaLe Lhe frequenL
need Lo record asslgnmenLs of Lransfers.
24. Þrlor Lo Lhe ML8S sysLem, every Llme a loan secured by a morLgage was sold,
Lhe asslgnee would need Lo record Lhe asslgnmenL Lo proLecL Lhe securlLy lnLeresL.
2S. 1he recordlng of Lhe asslgnmenL would be charged a recordlng fee by Lhe
CommonwealLh of kenLucky counLles LhaL generaLed revenue for Lhe CounLy.
26. ML8S's members (or, ºmembers") subscrlbe Lo Lhe ML8S sysLem and pay annual
fees for Lhe elecLronlc processlng and Lracklng of ownershlp and Lransfers of morLgages.
Members conLracLually agree Lo name ML8S as Lhe ºnomlnee" and morLgagee on all morLgages
LhaL Lhey reglsLer ln Lhe ML8S sysLem. Accordlng Lo ML8S, Lhe beneflL of namlng ML8S as Lhe
nomlnal morLgagee of record ls LhaL when a member Lransfers an lnLeresL ln a morLgage loan Lo
anoLher ML8S member, ML8S prlvaLely Lracks Lhe asslgnmenL wlLhln lLs sysLem buL remalns Lhe
morLgagee of record. As long as Lhe sale of Lhe noLe ls made Lo anoLher ML8S member, ML8S
remalns Lhe morLgagee of record. under lLs sysLem, Lhe lenders are able Lo sell Lhe loan Lo
lnvesLors wlLhouL recordlng Lhe LransacLlon ln Lhe CounLy Clerk's or ln Lhe publlc record
because ML8S lmproperly remalns Lhe morLgagee of record ln Lhe CounLy Clerk's offlce.
1hls conducL does noL comporL wlLh Lhe law, speclflcally LhaL where a noLe ls secured by llen,
Case 5:11-cv-00072-JHM Document 1 Filed 04/25/11 Page 8 of 15 PageID #: 8
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Lhe asslgnmenL passes Lhe llen by whlch lL ls secured. ML8S's poslLlon LhaL lL remalns Lhe
ºmorLgagee" ls noL accuraLe ln LhaL every Llme a morLgage ls asslgned, Lhe asslgnmenL musL be
flled wlLh Lhe CounLy Clerk so LhaL Lhe owner of Lhe noLe and morLgage are reflecLed.
27. Accordlng Lo ML8S's own webslLe, lLs sysLem saves money for lLs members
and ls speclflcally deslgned Lo avold paylng Lhe fees Lo ÞlalnLlffs and Lhe Class
Lhey seek Lo represenL. Speclflcally, ML8S has sLaLed:
ML8S acLs as nomlnee ln Lhe counLy land records for Lhe lender
and servlcer. Any loans reglsLered on Lhe ML8S SysLem ls
lnoculaLed agalnsL fuLure asslgnmenLs because ML8S remalns Lhe
nomlnal morLgagee no maLLer how many Llmes servlclng ls
Lraded.

* * *

AsslgnmenLs ellmlnaLed forever ($30 saved per loan).

* * *

Lenders may also asslgn lnLo ML8S lf Lhe loan has already been
closed ln Lhe lenders name. Cnce Lhe loan ls asslgned Lo ML8S. . .
Lracklng servlclng and beneflclal rlghLs can occur elecLronlcally for
all fuLure Lransfers. 1he need for any addlLlonal asslgnmenLs afLer
Lhls polnL wlll be ellmlnaLed unless Lhe servlclng rlghLs are sold Lo
a non-ML8S member.

* * *

Chaln of LlLle sLarLs and sLops wlLh ML8S! WlLh ML8S as Lhe
MorLgagee of 8ecord, you don'L need addlLlonal asslgnmenLs
ever. 1he unrecorded asslgnmenLs needed for lnLerlm fundlng
and loan sales are cosLly. WlLh ML8S you save an esLlmaLed $30
per loan on unrecorded asslgnmenLs.
* * *

ML8S saves Llme assoclaLed wlLh processlng mulLlple
asslgnmenLs.

Case 5:11-cv-00072-JHM Document 1 Filed 04/25/11 Page 9 of 15 PageID #: 9
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28. ln facL, ML8S ÞresldenL, 8.k. Arnold, LesLlfled ln 2009 LhaL assumlng
each morLgage has been resold and recorded [usL once, lL would have saved
Lhe lndusLry 52.4 b||||on ln recordlng expenses.
29. 1he uefendanLs' acLlons were and are a consplracy Lo avold havlng Lo pay
expenses assoclaLed wlLh recordaLlon of asslgnmenLs ln vlolaLlon of k8S § 382.360 and
ln vlolaLlon of k8S § 382.36S and, as such, are acLlonable under k8S § 446.070.
30. As a proxlmaLe resulL of Lhe uefendanLs' acLlons, ÞlalnLlffs, ln addlLlon Lo
Lhe Class ÞlalnLlffs Lhey seek Lo represenL, have suffered damages.
INDIVIDUAL AND CLASS ALLLGA1ICNS
31. 1he allegaLlons of paragraphs 1-30 above are realleged and lncorporaLed
hereln by reference.
32. ÞlalnLlffs brlng Lhls acLlon pursuanL Lo 8ule 23 of Lhe lederal 8ules of
Clvll Þrocedure on behalf of Lhemselves and all oLhers slmllarly slLuaLed.
33. 1he class conslsLs of all counLles by and Lhrough Lhelr CounLy Clerks locaLed
ln Lhe CommonwealLh of kenLucky who meeL Lhe followlng requlremenLs:
a. All counLles where Lhe uefendanLs have falled Lo record asslgnmenL and pay
appllcable fees for sald recordlngs of morLgages pursuanL Lo k8S § 382.360.

34. 1here are 120 counLles ln Lhe CommonwealLh of kenLucky and, Lhus, Lhe
members of Lhe class are so numerous LhaL [olnder of all members ls lmpracLlcable.
3S. 1here are quesLlons of law and facL, whlch are common Lo all members of Lhe
class, whlch quesLlons predomlnaLe over any quesLlon affecLlng only lndlvldual class members.
Case 5:11-cv-00072-JHM Document 1 Filed 04/25/11 Page 10 of 15 PageID #: 10
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36. 1he prlnclpal common lssues are wheLher uefendanLs vlolaLed k8S § 382.360,
wheLher uefendanLs consplred Lo vlolaLe k8S § 382.360 by Lhelr use of uefendanL ML8S,
and wheLher uefendanLs were un[usLly enrlched by Lhelr conducL.
37. 1wo addlLlonal common lssues are (a) wheLher Lhe ÞlalnLlffs and Lhe class of
lndlvlduals LhaL ÞlalnLlffs seek Lo represenL are enLlLled Lo an order declarlng LhaL
Lhese pracLlces, as descrlbed above, are ln vlolaLlon of k8S § 382.360, and
(b) Lhe approprlaLe amounL of damages and oLher rellef Lo be granLed Lo ÞlalnLlffs
and Lhe class of lndlvlduals LhaL ÞlalnLlffs seek Lo represenL.
38. 1he only lndlvldual quesLlons concern Lhe compuLaLlon of Lhe rellef Lo be
afforded each class member and can be deLermlned by a mlnlsLerlal examlnaLlon of Lhe
relevanL flles.
39. ÞlalnLlffs' clalms are Lyplcal of Lhe clalms of Lhe poLenLlal class members.
All are based on Lhe same legal and remedlal Lheorles.
40. ÞlalnLlffs wlll falrly and adequaLely proLecL Lhe lnLeresLs of all class members ln
Lhe prosecuLlon of Lhls acLlon and ln Lhe admlnlsLraLlon of all maLLers relaLlng Lo clalms sLaLed
hereln. ÞlalnLlffs are slmllarly slLuaLed wlLh Lhe members of Lhe class LhaL ÞlalnLlffs seek Lo
represenL. ÞlalnLlffs have reLalned counsel experlenced ln handllng class acLlon sulLs lnvolvlng
unfalr buslness pracLlces and consumer credlL law. nelLher Lhe named ÞlalnLlffs nor ÞlalnLlffs'
counsel have any lnLeresL whlch mlghL cause Lhem noL Lo vlgorously pursue Lhls acLlon.
41. CerLlflcaLlon under C8 23.02(b) ls approprlaLe. uefendanLs have acLed ln a
unlform manner Loward Lhe ÞlalnLlffs, and Lhe class of counLles LhaL ÞlalnLlffs
Case 5:11-cv-00072-JHM Document 1 Filed 04/25/11 Page 11 of 15 PageID #: 11
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seek Lo represenL, by vlolaLlng k8S § 382.360. llnal ln[uncLlve rellef and/or
declaraLory rellef are approprlaLe Lo remedy such acLlon.
42. CerLlflcaLlon under C8 23.02(c) ls also approprlaLe. A class acLlon ls superlor
Lo oLher avallable meLhods for Lhe falr and efflclenL ad[udlcaLlon of Lhe conLroversy, ln LhaL:
a. ConcenLraLlon of Lhe llLlgaLlon concernlng Lhls maLLer ln Lhls CourL ls deslrable.

b. 1he clalms of Lhe represenLaLlve plalnLlffs are Lyplcal of Lhe clalms of Lhe class
members.

c. A fallure of [usLlce wlll resulL from Lhe absence of a class acLlon.

d. 1he class ls of moderaLe slze and Lhe dlfflculLles llkely Lo be encounLered ln Lhe
managemenL of a class acLlon are noL greaL.

IIkS1 CLAIM - NLGLIGLN1 AND]Ck WILLIUL VICLA1ICN CI kkS § 382.360

43. 1he allegaLlons of paragraphs 1-42 above are realleged and lncorporaLed
hereln by reference.
44. 1he conducL of Lhe uefendanLs ln Lhls case has subsLanLlally frusLraLed
Lhe sLaLuLe and has caused ÞlalnLlffs and Lhe Class Lhey seek Lo represenL a loss
of subsLanLlal fees LhaL would have been collecLed had Lhe sLaLuLe noL been vlolaLed.
4S. As a proxlmaLe resulL of Lhe uefendanLs' negllgenL, wlllful, and wanLon vlolaLlons
of k8S § 382.360, ÞlalnLlffs and Lhe Class Lhey seek Lo represenL have been damaged.
SLCCND CLAIM - UNIUS1 LNkICnMLN1

46. 1he allegaLlons of paragraphs 1-4S above are realleged and lncorporaLed
hereln by reference.
47. uefendanLs' acLlons were performed wlLh Lhe speclflc purpose of avoldance of
havlng Lo record asslgnmenLs of morLgages and Lo avold expenses assoclaLed wlLh Lhe same.
Case 5:11-cv-00072-JHM Document 1 Filed 04/25/11 Page 12 of 15 PageID #: 12
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48. As a proxlmaLe resulL, ÞlalnLlffs asserL LhaL uefendanLs have been
un[usLly enrlched by Lhls wlllful vlolaLlon of Lhe CommonwealLh of kenLucky sLaLuLes.
49. As a proxlmaLe resulL of Lhe un[usL enrlchmenL, ÞlalnLlffs and Lhe Class Lhey
seek Lo represenL have been ln[ured. uefendanLs' conducL conferred a beneflL upon
Lhemselves aL Lhe expense of ÞlalnLlffs and Lhe Class Lhey seek Lo represenL. uefendanLs
were fully aware of Lhls beneflL Lo Lhemselves aL Lhe expense of ÞlalnLlffs and
Lhe ÞlalnLlffs' Class. llnally, uefendanLs have reLalned Lhe beneflL (namely, Lhe fees
saved by clrcumvenLlng Lhe recordaLlon of asslgnmenLs of morLgages when Lransferred)
wlLhouL compensaLlng ÞlalnLlffs and Lhe ÞlalnLlffs' Class.
1nIkD CLAIM - CIVIL CCNSÞIkAC¥ 1C VICLA1L kkS § 382.360

S0. 1he allegaLlons of paragraphs 1-49 above are realleged and lncorporaLed
hereln by reference.
S1. uefendanLs ln Lhls acLlon have consplred LogeLher Lo LhwarL Lhe
provlslons of k8S § 382.360.
S2. uefendanLs' acLlons were done wlLh Lhe speclflc purpose Lo noL have Lo
record asslgnmenLs of morLgages and paymenL of assoclaLed expenses.
S3. As a proxlmaLe resulL, ÞlalnLlffs and Lhe Class LhaL ÞlalnLlffs seek
Lo represenL have been damaged.
ÞkA¥Lk ICk kLLILI
WnLkLICkL, ÞlalnLlffs requesL LhaL Lhls CourL cerLlfy a class of counLles whom
uefendanLs have consplred agalnsL Lo vlolaLe k8S § 382.360, who have suffered damages
due Lo uefendanLs' negllgenL, wlllful, and wanLon vlolaLlons of Lhe sLaLuLe, and who have
Case 5:11-cv-00072-JHM Document 1 Filed 04/25/11 Page 13 of 15 PageID #: 13
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suffered damages due Lo uefendanLs' conducL, enLer [udgmenL agalnsL uefendanLs,
and award class-wlde rellef Lo all members of Lhe ÞlalnLlffs' Class, as follows:
a. llnd for Lhe ÞlalnLlffs and Lhe ÞlalnLlffs' Class and award compensaLory
and punlLlve damages for Lhe uefendanLs' lllegal conducL,

b. LnLer an ln[uncLlon orderlng uefendanLs, uefendanLs' agenLs and
employees, and all oLher persons ln acLlve concerL and parLlclpaLlon
wlLh uefendanLs Lo lmmedlaLely cease Lhe pracLlce of non recordlng
of asslgnmenLs of morLgages,

c. Award acLual damages and rellef Lo ÞlalnLlffs and Lhe class of lndlvlduals
LhaL ÞlalnLlffs seeks Lo represenL as a whole,

d. Award exemplary or punlLlve damages Lo ÞlalnLlffs and Lo Lhe
class of lndlvlduals LhaL ÞlalnLlffs seek Lo represenL as a whole
for damages Lhey suffered due Lo uefendanLs' wlllful and lnLenLlonal
vlolaLlon(s) of Lhe CommonwealLh of kenLucky sLaLuLes and for Lhe
uefendanLs' un[usL enrlchmenL,

e. Award cosLs and reasonable aLLorneys' fees Lo ÞlalnLlffs and Lhe
class of lndlvlduals LhaL ÞlalnLlffs seek Lo represenL as a whole,

f. Award lnLeresL on Lhe amounLs lmproperly wlLhheld by Lhe uefendanLs, and

g. Crder such oLher and furLher rellef as may be [usL.

DLMAND ICk IUk¥ 1kIAL
ÞursuanL Lo 8ule 38(a) of Lhe lederal 8ules of Clvll Þrocedure, ÞlalnLlffs demand
a [ury Lrlal as Lo all lssues Lrlable by a [ury.
uaLed: Aprll 2S, 2011
8especLfully submlLLed,

/s/ Motk k. Ctoy
Mark k. Cray
MaLLhew L. WhlLe
uorls A. klm
l8AnkLln C8A? & WPl1L
S0S W. Crmsby Avenue
Loulsvllle, kenLucky 40203
Case 5:11-cv-00072-JHM Document 1 Filed 04/25/11 Page 14 of 15 PageID #: 14
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1S
1elephone (S02) 637-6000
lacslmlle (S02) 637-6000
mgray[frankllngrayandwhlLe.com
mwhlLe[frankllngrayandwhlLe.com
dklm[frankllngrayandwhlLe.com

!.u. kermode
!ohn M. Slmms
A1klnSCn, SlMMS & kL8MCuL, ÞLLC
1608 Parrodsburg 8oad
LexlngLon, kenLucky 40S04
1elephone (8S9) 22S-174S
lacslmlle (8S9) 2S4-2012
[dk[ask-law.com
[ms[ask-law.com

Of cooosel, leoJloq lto noc vlce AJmlssloo

Cralg L. Lowell
u.C. ÞanLazls, !r.
WlCClnS, CPlLuS, Culnn & ÞAn1AZlS
1he kress 8ulldlng
301 19Lh SLreeL norLh
8lrmlngham, Alabama 3S203
1elephone (20S) 314-0S00
lacslmlle (20S) 2S4-1S00
clowell[wcqp.com
dpanLazls[r[wcqp.com

8renL L. CrumpLon
88Ln1 L. C8uMÞ1Cn, ÞC
ÞosL Cfflce 8ox SS9SS
8lrmlngham, Alabama 3S2SS-S9SS
1elephone (20S) 2S0-0010
lacslmlle (20S) 2S0-001S
blc[crumpLonlaw.com

counse/ for P/ointiffs
Case 5:11-cv-00072-JHM Document 1 Filed 04/25/11 Page 15 of 15 PageID #: 15
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