894 F.3d 1274
8th Cir.2018Background
- Thomas and Mary Litterer owned a home in Burnsville, MN that was sold at a sheriff’s sale to U.S. Bank in November 2014; the statutory redemption period expired March 1, 2015.
- On March 2, 2015 the Litterers sued their loan servicer, Rushmore, in state court alleging breach of contract, unjust enrichment, and seeking injunctive relief; they later removed the case to federal court, amended to add a statutory § 582.043 claim, and abandoned the common-law claims.
- Minn. Stat. § 582.043, subd. 7(a) permits a mortgagor to set aside a foreclosure sale for statutory violations; subd. 7(b) requires filing a lis pendens within the redemption period and provides that failure to do so creates a conclusive presumption that the servicer complied with the statute.
- The Litterers filed a lis pendens on May 6, 2015, after the redemption period had expired, and conceded they were late; they asked the court to excuse the tardy filing under Minn. R. Civ. P. 6.02 (excusable neglect).
- Rushmore and U.S. Bank moved for summary judgment arguing the late lis pendens triggered the conclusive-presumption bar under § 582.043(7)(b); the district court agreed, holding Rule 6.02 could not extend the statutory deadline.
- The Eighth Circuit certified the question whether Rule 6.02 may extend the § 582.043 lis pendens deadline to the Minnesota Supreme Court, which held Rule 6.02 may not be used to extend that deadline; the Eighth Circuit affirmed judgment for Rushmore and U.S. Bank.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Minn. R. Civ. P. 6.02 excusable-neglect power can extend the lis pendens deadline in Minn. Stat. § 582.043(7)(b) | Litterer: Rule 6.02 allows courts to permit late acts for excusable neglect, so the lis pendens filing should be excused and claim preserved | Rushmore/U.S. Bank: Rule 6.02 cannot alter or extend a substantive statutory deadline; failure to file within redemption period triggers conclusive presumption of compliance | Held: No—Rule 6.02 cannot be used to extend the § 582.043(7)(b) lis pendens deadline; late filing bars relief |
Key Cases Cited
- Litterer v. Rushmore Loan Mgmt. Servs., 905 N.W.2d 623 (Minn. 2018) (Minn. Supreme Court holding Rule 6.02 cannot extend the lis pendens deadline in Minn. Stat. § 582.043)