Mass Joinder Lawsuit Defined –
There seems to be a bit of confusion as to exactly what a Mass Joinder lawsuit is. To that end I will provide you standard definition as well as a laymen’s interpretation.
According to Wikipedia:
Joinder in criminal law is a legal term which refers to the inclusion of additional counts or additional defendants on an indictment. In English law, charges for any offence may be joined in the same indictment if those charges are founded on the same facts, or form or are a part of a series of offences of the same or a similar nature. A number of defendants may be joined in the same indictment even if no single count applies to all of them, provided that the counts are sufficiently linked. The judge retains the option to order separate trials.
Joinder in civil law falls under two categories: joinder of claims, and joinder of parties. Joinder of claims is addressed in U.S. law by the Federal Rules of Civil Procedure No. 18(a). That Rule allows claimants to consolidate all claims that they have against an individual who is already a party to the case. Claimants may bring new claims even if these new claims are not related to the claims already stated. Note that joinder of claims is never compulsory (i.e., joinder is always permissive), and that joinder of claims requires that the court’s subject matter jurisdiction requirements regarding the new claims be met for each new claim.
So what does this all mean to you and me? Simply put there are two key tenets to a Mass Joinder Lawsuit.
- Shared Costs. Since the plaintiff are suing the same entity (the banks) for the same violations of law; Proof of Note, Proof of Security, and MERS as an invalid nominee, the plaintiffs are able to share in the legal fees. If an individual wants to hire a law firm to take on one of the largest financial institutions in the world, the legal fees would start at about $50,000 and increase quickly as the process evolved. By participating in the Mass Joinder, the plaintiffs are able to retain the law firm as very small fraction of the cost. Currently there are over 1200 plaintiffs involved in this case.
- Individual settlements. Unlike a Class Action suit where the plaintiffs all share one judgment after the attorneys take their fee. In a Mass Joinder each since each plaintiffs’ individual loan is unique, and therefore the bank may have violated different laws during it’s handling of said loans, each home owner may have unique demands and gain the benefit of having everone’s complaints being added as weight to their individual case. Examples of those demands are: (Principle Reduction, Full Lien Strip, and Monetary Compensation)
- From the standpoint of protecting yourself from foreclosure, this action can assist in preventing a foreclosure from going into a sale of the property. The legal term is know as a “compulsory counterclaim” which simply means that if one party sues another (i.e a bank sue a borrower to recover the property in the mortgage, and then the borrower sue the bank, i.e Mass Joinder Lawsuit neither party can execute a legal action against the other until the case is either settle or won by either party.
For a better understanding of the legal rational and strategy and how it may apply to your specific loan, call or email me to discuss.