Citizens State Bank v. Raven Trading Partners, Inc.

The court’s decision rests on the notion that “equity aids the vigilant, and not the negligent,” and therefore Citizens’ failure to act for 38 days in resubmitting the mortgage registration tax does not warrant equitable subrogation. However, in our over-century-long application of equitable subrogation we have faced far more egregious conduct and have never found a mistake so unjustifiable or so inexcusable that equitable subrogation should not apply. I would hold that the district court did not clearly abuse its discretion when it applied equitable subrogation to Citizens’ mortgage.

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