Ruby Valley Nat’l Bank v. Wells Fargo Del. Trust Co., N.A.Annotate this Case
Ruby Valley National Bank (RVNB) obtained and recorded a deed of trust (DOT) on certain real property subsequent to a previously recorded DOT. Wells Fargo Delaware Trust Co. (Wells Fargo) claimed to be the beneficiary of the first DOT. RVNB filed for judicial foreclosure of its interest in the property. The district court granted summary judgment for RVNB, holding that RVNB’s DOT was entitled to priority over the earlier DOT held by Wells Fargo because Wells Fargo had not proven the elements necessary for judicial foreclosure and was unable to do so because its trial witness and exhibit list had been stricken. The Supreme Court reversed, holding (1) Wells Fargo was not required to file a counterclaim for foreclosure to protect its interest in the property; and (2) because the undisputed facts established that Wells Fargo was the current beneficiary of the first DOT, the undisputed facts established that Wells Fargo was entitled to judgment as a matter of law that its indenture held priority over RVNB’s indenture.