Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-azd-2_11-cv-01227/USCOURTS-azd-2_11-cv-01227-2/pdf.json

Nature of Suit Code: 380
Nature of Suit: Other Personal Property Damage
Cause of Action: 28:1332 Diversity-Injunctive &amp; Declaratory Relief

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WO 

IN THE UNITED STATES DISTRICT COURT 

FOR THE DISTRICT OF ARIZONA

Federal National Mortgage Association,

Plaintiff, 

vs. 

Marshall Home; Independent Rights Party, 

Defendants. 

No. CV-11-1227-PHX-DGC

ORDER AND PRELIMINARY 

INJUNCTION 

 Plaintiff Federal National Mortgage Association (“Fannie Mae”) claims that 

Marshall Home, founder of the Independent Rights Party (“IRP”), has fraudulently 

executed and recorded special warranty deeds which purport to transfer to IRP the titles 

to multiple properties owned by Fannie Mae. Doc. 1. Fannie Mae filed an ex parte 

motion for a temporary restraining order (“TRO”) and preliminary injunction. Doc. 4. 

The Court denied the motion to the extent it sought ex parte relief, set a hearing for June 

30, 2011, and directed Fannie Mae to provide Defendants with notice of the hearing and 

copies of the complaint and motion. Doc. 29. Mr. Home has filed a pro se motion to 

dismiss. Doc. 33.1

 Fannie Mae has filed a supplemental brief in support its motion. 

 

1

 Mr. Home purported to file the motion to dismiss on behalf of himself and 

Defendant IRP, but only licensed attorneys may represent corporations and other entities in federal court. See Rowland v. Cal. Men’s Colony, Unit II Men’s Advisory Council, 506 

U.S. 194, 201-202 (1993) (citing Osborn v. President of Bank of U.S., 9 Wheat. 738, 829, 

6 L.Ed. 204 (1824)); D-Beam Ltd. P’ship v. Roller Derby Skates, Inc., 366 F.3d 972, 973-

74 (9th Cir. 2004). As a result, the motion to dismiss is deemed filed only on behalf of 

Mr. Home. 

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Doc. 36. Fannie Mae appeared at the June 30 hearing through counsel, Mr. Home 

represented himself and appeared by telephone, and IRP did not appear through counsel. 

 The Court found at the hearing that Fannie Mae is likely to succeed on its claim 

that Defendants are prohibited by federal law from appropriating or otherwise attempting 

to use the name Federal National Mortgage Association. “In 12 U.S.C. § 1723a(e), 

Congress provided [for] an action to enjoin the unauthorized use of the words ‘Federal 

National Mortgage Association[.]’” Siddiqui v. United States, 359 F.3d 1200, 1203-04 

(9th Cir. 2004). For reasons stated in detail on the record at the hearing, the Court also 

found that Fannie Mae has met the other requirements for preliminary injunctive relief. 

See Fed. R. Civ. P. 65; Winter v. Natural Res. Def. Council, 555 U.S. 7, 129 S. Ct. 365, 

374 (2008). The Court therefore granted Fannie Mae’s motion for injunctive relief. 

Doc. 4. Because Fannie Mae and Mr. Home agreed at the hearing that the hearing would 

address Fannie Mae’s request for both a TRO and preliminary injunction, and IRP was 

not present to oppose Fannie Mae’s motion, the Court will enter a preliminary injunction. 

 The Court will also deny Mr. Home’s motion to dismiss. Mr. Home argues that 

Fannie Mae lacks standing to seek relief from this Court for two reasons. He first claims 

that Fannie Mae is not authorized to do business in Arizona (Doc. 33 at 1), but that is not 

required for Fannie Mae to have standing. Section 1723a(a) explicitly provides that 

Fannie Mae “shall have power” (1) to “sue and to be sued, and to complain and to 

defend, in any court of competent jurisdiction, State or Federal,” and (2) to “conduct its 

business without regard to any qualification or similar statute in any State of the United 

States[.]” 12 U.S.C. § 1723a(a); see 12 U.S.C. § 1717(a)(2). Citing § 1723a(a), this 

Circuit has noted that Fannie Mae “is exempt from having to qualify to do business in 

any state[.]” Rust v. Johnson, 597 F.2d 174, 177 (9th Cir. 1979). To the extent state law 

is to the contrary, as Mr. Home asserts, it must yield to federal law under the Supremacy 

Clause of the United States Constitution. U.S. Const. art. VI, cl. 2 (federal law “shall be 

the supreme Law of the Land . . . , any Thing in the Constitution or Laws of any State to 

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the Contrary notwithstanding”); see Rust, 597 F.2d at 177 (“State legislation must yield 

under the supremacy clause of the Constitution to the interests of the federal government 

when the legislation as applied interferes with the federal purpose or operates to impede 

or condition the implementation of federal policies and programs.”); Pliva, Inc. v. 

Mensing, --- S. Ct. ---, 2011 WL 2472790, at *10 (June 23, 2011) (“The Supremacy 

Clause, on its face, makes federal law ‘the supreme Law of the Land’ even absent an 

express statement by Congress.”). 

 Mr. Home further asserts that Fannie Mae lacks standing because it has no valid 

title to the properties at issue. According to Mr. Home, chain of title has been broken 

because Mortgage Electronic Registration Systems, Inc. (MERS) was not a “holder in 

due course” to the underlying notes and therefore could not effectively transfer title to 

Fannie Mae. The Court finds that Fannie Mae has presented sufficient evidence to 

establish its ownership of the properties at issue. See Doc. 1-6. In short, Fannie Mae has 

standing to bring this action and seek injunctive relief against Defendants. 

IT IS ORDERED:

 1. Pursuant to the stipulation between Fannie Mae and Defendant Marshall 

Home, as stated on the record at the hearing, and the absence of opposition by IRP, 

Fannie Mae’s motion (Doc. 4) is treated as one for a preliminary injunction. For reasons 

stated above and on the record, the motion is granted. 

 2. Defendants and any others who may be in active concert or participation 

with them who receive actual or constructive notice of this order, including, but not 

limited to, employees, members, agents, and spouses of Defendants, are, pending further 

order of the Court, enjoined from the following: 

 (i) Doing business under the names of “Federal National Mortgage 

Association,” “Fannie Mae,” “FNMA,” or any other confusingly similar variation of the 

name “Federal National Mortgage Association”; 

 (ii) Executing any documents on behalf of “Federal National Mortgage 

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Association,” “Fannie Mae,” “FNMA,” or any other confusingly similar variation of the 

name “Federal National Mortgage Association”; 

 (iii) Using the names “Federal National Mortgage Association,” “Fannie 

Mae,” “FNMA,” or any other similar variation of the name “Federal National Mortgage 

Association” in any capacity whatsoever; 

 (iv) Recording or causing to be recorded any special warranty deed or 

any instrument attempting to convey title or impact property ownership related to any 

property currently owned or hereinafter acquired by Fannie Mae; 

 (v) Holding themselves out as representatives, agents, or employees of 

“Federal National Mortgage Association,” “Fannie Mae,” “FNMA,” or any other 

confusing similar variation of the name “Federal National Mortgage Association”; 

 (vi) Transferring the name “Federal National Mortgage Association” that 

Defendant Marshall Home registered with the Arizona Secretary of State to any 

individual or entity, or taking any action regarding the name “Federal National Mortgage 

Association” registered with the Arizona Secretary of State; 

 (vii) Taking any action to further impact title to the real properties 

referenced in the Complaint (with the exception of properties 10, 18, and 19 (see Doc. 36 

at 2 n.1) or any other real properties owned or hereafter acquired by Fannie Mae. Such 

enjoined actions include, but are not limited to, selling, conveying, financing, 

refinancing, encumbering, leasing, or transferring title to any such properties; 

 (viii) Taking any other action to circumvent this order and the rights of 

Fannie Mae with regard to real properties owned by Fannie Mae. 

 3. Defendants are further ordered to withdraw all of the Special Warranty 

Deeds (Exhibits F1-28 to the Complaint), and Defendants and any others who may be in 

active concert or participation with them who receive actual or constructive notice of this 

order, including, but not limited to, employees, members, agents, and spouses of 

Defendants, are enjoined from taking any action to re-record the Special Warranty Deeds 

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with the applicable County Recorder’s office until further order of the Court. 

 4. This order and preliminary injunction is conditioned upon Fannie Mae 

posting a security bond in the amount of $5,000.00 by July 6, 2011. This security bond 

shall serve as security for payment of such costs and damages as may be incurred or 

suffered by Defendants if they are later found to have been wrongfully enjoined and 

restrained. 

 5. Fannie Mae, by July 6, 2011, shall provide notice and file a copy of this 

order and preliminary injunction to the Maricopa County Recorder’s Office, the Pima 

County Recorder’s Office, and the Arizona Secretary of State. 

 6. The motion to dismiss (Doc. 33) is denied. 

 7. The Court will set a case management conference by separate order. 

 Dated this 1st day of July, 2011. 

 

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