Laura L. Walsh v. U.S. Bank, N.A.
2014 Minn. LEXIS 361
| Minn. | 2014Background
- Walsh defaulted on her mortgage; bank pursued non-judicial foreclosure.
- Bank attempted to serve foreclosure notices on an adult at Walsh’s property named Jane Doe; service described as occupant who refused to identify or open the door.
- Walsh sued to vacate the sale for ineffective service under Minn. Stat. § 580.03 and Minn. R. Civ. P. 4.03(a), alleging only Walsh and a male roommate resided at the property.
- Bank moved to dismiss under Minn. R. Civ. P. 12.02(e) citing Twombly’s plausibility standard.
- District court dismissed; court of appeals reversed; Minnesota Supreme Court granted review to decide pleading standard in state court civil actions.
- Supreme Court held to retain the traditional Rule 8.01 standard and declined to adopt the federal plausibility standard; Walsh’s complaint satisfies the traditional standard; case affirmed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Twombly/Iqbal plausibility applies in Minnesota | Walsh argues for the federal plausibility standard to govern. | U.S. Bank urges adoption of plausibility under Rule 8.01 for Minnesota. | Plausibility not adopted; traditional Rule 8.01 applies. |
| Whether Walsh's complaint satisfies Minnesota's Rule 8.01 pleading standard | Walsh’s facts show possible relief under service theories. | Walsh’s claims lack plausible facts under 8.01. | Walsh's complaint satisfies the traditional pleading standard. |
Key Cases Cited
- Bell Atlantic Corp. v. Twombly, 550 U.S. 544 (U.S. 2007) (adopted plausibility standard for federal pleadings)
- Ashcroft v. Iqbal, 556 U.S. 662 (U.S. 2009) (two principles: no assumption of truth for legal conclusions; pleadings must show plausibility)
- First National Bank of Henning v. Olson, 246 Minn. 28 (Minn. 1955) (interpretation of Rule 8.01; broad notice pleading)
- Northern States Power Co. v. Franklin, 265 Minn. 391 (Minn. 1963) (pleading sufficiency: possible on any evidence consistent with theory)
- Bahr v. Capella Univ., 788 N.W.2d 76 (Minn. 2010) (avoidance of mere labels/conclusions; notice pleading)
- Hebert v. City of Fifty Lakes, 744 N.W.2d 226 (Minn. 2008) (not bound by legal conclusions; Twombly cited for caution)