Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-azd-2_09-cv-01508/USCOURTS-azd-2_09-cv-01508-2/pdf.json

Nature of Suit Code: 950
Nature of Suit: Constitutionality of State Statutes
Cause of Action: 28:1332 Diversity-Declaratory Judgment

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NOT FOR PUBLICATION

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF ARIZONA

Federal Home Loan Mortgage

Corporation, 

Plaintiff, 

vs.

Sherryl L. Madison, 

Defendant. 

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No. CV-09-01508-PHX-GMS

ORDER

Pending before the Court is Plaintiff Federal Home Loan Mortgage Corporation’s

Motion For: Statutory Penalties and Fees and Costs And Notice of Lodging Proposed Form

of Judgment (Doc. 52). For the reasons set forth below that motion is denied without

prejudice. 

Arizona Revised Statutes (“A.R.S.”) § 33-420(A) specifies that: 

A person purporting to claim an interest in, or a lien or

encumbrance against, real property, who causes a document

asserting such claim to be recorded in the office of the country

recorder, knowing or having reason to know that the document

is forged, groundless, contains a material misstatement or false

claim or is otherwise invalid is liable to the owner or beneficial

title holder of the real property for the sum of not less than five

thousand dollars, or for treble the actual damages caused by the

recording, whichever is greater, and reasonable attorney fees and

costs of the action.

This Court has already determined that Defendant has filed at least two documents,

Case 2:09-cv-01508-GMS Document 58 Filed 10/05/10 Page 1 of 2
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her notice of lis pendens, and the Deed of Release and Reconveyance that were, at the least,

groundless (Doc. 40). Although Defendant has filed several motions for reconsideration of

this determination, all such motions have been denied. See, e.g., Docs. 51, 56. 

What the Court has not yet determined, however, is whether the Federal Home Loan

Mortgage Corporation is the owner of the property or beneficial title holder thereto.

According to the statute, only the owner or the beneficial title holder is entitled to the award

of statutory damages. The Federal Home Loan Mortgage Corporation, has yet to establish

that it is in such a position, and Defendant clearly contests it. Therefore, Plaintiff’s motion

for the award of statutory penalties and fees and costs is denied without prejudice until such

time as the Plaintiff establishes that it was/is entitled to enforce the Note and Deed of Trust

in this case pursuant to A.R.S. § 47-3309 and other possibly applicable Arizona law.

IT IS THEREFORE ORDERED denying the Motion for Judgment without

prejudice (Doc. 52).

DATED this 5th day of October, 2010.

Case 2:09-cv-01508-GMS Document 58 Filed 10/05/10 Page 2 of 2