Douglas v. Troy Bank & Trust Company

In yet another case decided by the Alabama Court of Civil Appeals on August 24, 2012, the Court  rejected the common argument often made by borrowers that a foreclosing lender must produce the original promissory note.  In the case of Douglas v. Troy Bank & Trust Company, an ejectment action arose following a non-judicial foreclosure by the Bank.  The borrowers asserted that the Court did not have subject-matter jurisdiction because the Bank was not a “holder in due course” of the Note or the mortgage nor had the Bank produced the original “wet-ink signature” promissory note and mortgage.  The trial court entered judgment in favor of the Bank and the borrowers appealed to the Alabama Court of Civil Appeals.  In upholding the judgment of the trial court, the Court of Appeals details the findings of courts in other jurisdictions as to this issue in finding that these “show me the note” arguments lack merit under Alabama law.