Imperial Developers, Inc., Plaintiff, vs. Calhoun Development, LLC, Respondent. Regal Custom Homes, Inc., et al., Defendants, Lind Homes, Inc., Respondent, Thompson Plumbing Corp., Respondent, Great Northern I, Inc., Respondent, Southview Design & Construction, Inc., Respondent, BankFirst, Appellant, The Woodshop of Avon, Inc., additional defendant, Respondent, Scherer Bros. Lumber Co., intervening defendant and third-party plaintiff, Respondent, vs. Matthew Lind, et al., Third-Party Defendants, Simonson Lumber of Ham Lake, Inc., Third-Party Plaintiff, vs. Contractors Capital Corporation, et al., Third-Party Defendants., 790 N.W.2d 146

Summary

On the petition for review, the mortgagee contended that a mortgage against Torrens property was "of record", within the meaning of Minn. Stat. § 514.05(1), when it was filed with the county registrar of titles on June 28, 2005. The lien holders contended that "of record" meant that a mortgage against Torrens property had been both filed and memorialized on the Torrens certificate, and thus registered. Therefore, the lien holders argued, the mortgagee's mortgage was not memorialized on the Torrens certificate until September 20, 2006, after the mechanic's liens had attached. The court reversed and held that under the plain meaning of § 514.05, the mortgage interest was "of record" under § 514.05(1) when it was filed with the registrar, date and time stamped, and issued a document number. Because the mortgagee's mortgage was of record before the lien holders' mechanic's liens attached, the mortgagee had priority in the foreclosure proceeding.