Republic National Life Insurance v. Marquette Bank & Trust Co.

Peterson, Justice.

In a suit for declaratory judgment, the district court held that plaintiff’s mortgage on certain real property was prior to defendant’s lease and that in the event of foreclosure on the mortgage, the property would not be subject to the lease. The court based its holding on the grounds that plaintiff was a subsequent purchaser in good faith under the the recording statute, Minn. St. 507.34, 1 and that the lease contained an implied subordination agreement in favor of the mortgage. On appeal, defendant, argues that the evidence does not sustain either finding. 2 We reverse.

Pla…