We've commented on the various plans (mostly backed by a private venture capital outfit out of San Francisco) to have local municipalities seize underwater-but-performing morrtgages by eminent domain (see here and here, for example). Apparently the brainchild of Cornell lawprof Robert Hockett and sold as a "no lose" situation (see "Paying Paul and Robbing No One: An Eminent Domain Solution for Underwater Mortgage Debt"), the city of North Las Vegas was the first municipality to bite.
Yesterday, chapter 2: someone named "Gregory P. Smith" filed suit in federal court seeking to invalidate the plan. The complaint seeks declaratory and injunctive relief for violations of the Public Use Clauses of the U.S. and the Nevada Constitutions, the Due Process Clauses, the Contracts Clause, the Commerce Clause, and Nevada eminent domain statutes.
Who is Smith, and how does he have standing? We're not sure, because the complaint doesn't say -- maybe he's a "No One" who is being robbed under the MRP plan? We'll see.