United States v. US Bank Nat'l Ass'n, No. 15-2550 (8th Cir. 2016)Annotate this Case
The Government filed suit to determine whether its 2004 tax lien on a foreclosed property had priority over several other competing interests in the property. The district court granted summary judgment for the Government. US Bank held an interest via a 2006 deed of trust, and appealed the district court's judgment. In chronological order, the 2004 deed of trust was recorded (March 29, 2004), the date the Government’s tax lien for unpaid 2004 taxes was assessed (November 21, 2005), and the date the 2006 deed of trust was recorded (July 11, 2006). The court concluded that the release-first sequencing combines with the lengthy gap in recording to prevent the court from considering the release of the 2004 deed of trust and recordation of the 2006 deed of trust to have occurred sufficiently contemporaneously to be part of the same transaction. Allowing U.S. Bank to stretch the notion of “same transaction” to include a more-than-two-month gap between release of an old deed of trust and recordation of a new one would undermine the integrity of the recording statute. The court concluded that the district court did not err by granting summary judgment to the Government because no genuine issue of material fact remains as to whether the 2006 deed of trust retained the priority of the released 2004 deed of trust.