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The Bank of New York Mellon, et al., v. Alan G. Keiran, et al.. MN mortgage foreclosure
This was an appeal of a mortgage foreclosure from Dakota County. The homeowners alleged that they had not received the required Truth in Lending Disclosures, and a case regarding that issue was pending in federal court. The district court stayed the proceedings, but required the homeowners to post a monthly bond in the amount of $4020.80 while the stay was in effect.
The district court eventually granted summary judgment, in part because the homeowners had not made the required bond payments. They then appealed to the Minnesota Court of Appeals.
They first argued that the state court lacked jurisdiction, since the federal case was pending. But the appeals court held that since the mortgage foreclosure was an in personam action, the existence of the earlier in rem federal action did not deprive the state court of jurisdiction.
They next argued that there were genuine issues of material fact, and the mere failure to pay the bond should not have resulted in summary judgment. The appeals court agreed. From its reading of the record, it found that the lower court had entered summary judgment solely because of the failure to pay the bond, and never made any finding that there were no genuine issues of material fact.
For that reason, it reversed the judgment and remanded the case back to the Dakota County district court.
Nos. A14-0304 and A14-0620 (Minn. Ct. App. Apr. 6, 2015)
Please see the original opinion for the court's exact language.
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Richard P. Clem is an attorney and continuing legal education (CLE) provider in Minnesota. He has been in private practice in the Twin Cities for 25 years. He has a J.D., cum laude, from Hamline University School of Law in St. Paul and a B.A. in History from the University of Minnesota. His reported cases include: Asociacion Nacional de Pescadores a Pequena Escala o Artesanales de Colombia v. Dow Quimica de Colombia, 988 F.2d 559, rehearing denied, 5 F.3d 530 (5th Cir. 1993), cert. denied, 510 U.S. 1041 (1994); LaMott v. Apple Valley Health Care Center, 465 N.W.2d 585 (Minn. Ct. App. 1991); Abo el Ela v. State, 468 N.W.2d 580 (Minn. Ct. App. 1991).
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