FV-I, Inc. v. KallevigAnnotate this Case
This case arose from a mortgage foreclosure petition filed by FV-I, Inc. The dispute in this case was between FV-I and Bank of the Prairie (BOP), a bank with junior mortgages on the same property. The parties agreed to sell the property and place the proceeds in escrow pending resolution of this case. Summary judgment was initially granted in favor of BOP. The Court of Appeals reversed and remanded for a trial to determine whether FV-I had possession of the promissory note underlying the mortgage at the time it filed the mortgage foreclosure. After a trial, the district court concluded that FV-I lacked standing to file the petition because it did not have possession of the original note prior to filing its petition and that BOP’s mortgages were superior to FV-I’s mortgage. The Court of Appeals affirmed. The Supreme Court reversed, holding that evidentiary rulings excluding endorsements on the promissory note require a remand for a rehearing regarding standing and the panel’s priority determination. Remanded.