In re Collier

Collier (plaintiff) knew that M & I Bank (defendant) had failed to register both its mortgage on Torrens-registered property and its subsequent purchase interest from a foreclosure sale after the original owner, Conley, defaulted; despite this actual knowledge, Collier paid Conley $5,000 for a warranty deed to the same property, promptly registered both that deed and a mortgage he placed on it, and then sought a declaratory judgment and Torrens certificate asserting his registered interest had priority over the bank's unregistered interest. The district court granted the bank summary judgment, the appellate court reversed, and the bank appealed to the Minnesota Supreme Court.