Washington County District Court File No. 82-CV-12-1865.
Phaedra J. Howard, Hellmuth & Johnson, PLLC, Edina, Minnesota (for appellant).
Lori J. Mierva, Oakdale, Minnesota (pro se respondent) JDB Mortgage, Inc., Apple Valley, Minnesota (respondent).
Wyatt S. Partridge, Michael W. Haag, Foley & Mansfield, PLLP, Minneapolis, Minnesota (for respondent TCF National Bank).
Considered and decided by Cleary, Chief Judge; Kalitowski, Judge; and Kirk, Judge.
Appellant Foxborough Place Condominium Association, Inc. argues that the district court erred in (1) failing to find it was a bona fide purchaser entitled to protection under the Minnesota Recording Act; (2) holding respondent TCF National Bank's mortgage to be the first mortgage on the property; (3) extinguishing a third-party lender's mortgage; and (4) denying, in part, its motion for attorney fees. We affirm.
"On appeal from summary judgment, we must review the record to determine whether there is any genuine issue of material fact and whether the district court erred in its application of the law." Dahlin v. Kroening, 796 N.W.2d 503, 504 (Minn. 2011). "We view the evidence in the light most favorable to the party against whom summary judgment was granted." STAR Centers, Inc. v. Faegre & Benson, L.L.P., 644 N.W.2d 72, 76-77 (Minn. 2002) (citations omitted). Because there are no material facts in dispute, the district court's application of law is reviewed de novo. Leamington Co. v. Nonprofits' Ins. Ass'n, 615 N.W.2d 349, 353 (Minn. 2000). As a threshold issue, this court must determine whether the district court correctly determined that Foxborough Place Condominium Association, Inc. (Foxborough) was not a bona fide purchaser.
In 1996, respondent Laura Mierva purchased a condominium in the Foxborough Place Condominiums in Washington County, Minnesota. Foxborough is a common interest community association that is responsible for the maintenance and management of the condominium complex. Both Foxborough and Mierva, as fee owner, are governed by the Minnesota Common Interest Ownership Act (MCIOA) under Minnesota Statutes chapter 515B. The property is also subject to the condominium's declaration, bylaws, rules, and regulations. The declaration requires Mierva to pay monthly assessments to Foxborough.
Mierva obtained a mortgage on the condominium on February 6, 2006, through respondent JDB Mortgage (JDB). JDB recorded the mortgage on February 28, 2006, in Washington County. In January 2008, Mierva refinanced the condominium for $88, 000 through TCF National Bank (TCF). TCF sent JDB a check for $13, 415.77 in satisfaction of JDB's mortgage. While TCF promptly recorded its mortgage on the property that same month, JDB failed to record the satisfaction of its mortgage.
On March 7, 2012, Foxborough recorded a lien on Mierva's condominium for unpaid assessments and late charges. When Foxborough recorded its assessment lien, the record on the property reflected JDB's mortgage as the senior mortgage, followed by Foxborough's lien, and TCF's mortgage in the third position. When Foxborough recorded its lien, it did not know that TCF had paid off the JDB mortgage in 2008. On March 29, 2012, Foxborough initiated an action to foreclose on Mierva's ...