November 12, 2014
Link to the Supreme Court of Missouri Opinion
This
case arose out of an ordinance adopted by the St. Louis County Council
[hereinafter, the County] in 2012.[1] The ordinance, known as the “Mortgage
Foreclosure Intervention Code,” stated its intention was to address “the
national residential property foreclosure crisis” and the crisis’s negative
impact on the County’s “property values, tax base, budget, assessments, and
collection of real property taxes.[2] The ordinance recognized “unmaintained
properties” as public nuisances.[3] In an attempt to rectify the public nuisance
problem, the ordinance “implemented a mediation program requiring lenders to
provide residential borrowers an opportunity to mediate prior to foreclosure.”[4]
Two banks sued the County seeking
injunctive relief and a declaratory judgment that the ordinance was invalid
after the County enforced the ordinance.
The lower court granted the County’s summary judgment motion, and the
Court of Appeals dismissed the banks’ appeal.
The Supreme Court of Missouri granted transfer.