Wetzel v. Mortgage Electronic Registration Systems, Inc.

Summary

The Supreme Court of Arkansas accepted certification from the United States Bankruptcy Court for the Eastern District of Arkansas concerning whether a recorded affidavit of lost mortgage with an appended copy, or a recorded copy of a lost mortgage, provides constructive notice sufficient to defeat a bona fide purchaser claim. The court established briefing and procedural requirements for the certified-question proceeding and stated that the certified question was answered.

Holdings

1. The Arkansas Supreme Court accepted certification of the Arkansas-law question because the question could be determinative of the pending bankruptcy proceeding and appeared to lack controlling precedent from the Arkansas Supreme Court.
2. The certified question presented for resolution was whether specified recorded documents relating to a lost mortgage constitute constructive notice sufficient to defeat a bona fide purchaser's claim under Arkansas law.

Questions Presented

1. Whether the Arkansas Supreme Court should accept certification of a question of Arkansas law from the United States Bankruptcy Court for the Eastern District of Arkansas.
2. Whether an affidavit of lost mortgage with a copy of the mortgage appended, or merely a copy of an admittedly lost original mortgage, separately or collectively recorded, constitutes constructive notice sufficient to defeat the claim of a bona fide purchaser under Arkansas law.

Disposition

cert_granted