In re the Receivership of United Prairie Bank, Respondent, vs. Molnau Trucking LLC, et al., Defendants, Granite Re, Inc....
Supreme Court of Minnesota
1. A performing construction surety need not show any mistake of fact to exercise its right of equitable subrogation. 2. A surety’s right to equitable subrogation is not a security interest subject to the Uniform Commercial Code (UCC), Minn. Stat. §§ 336.9-101 to 336.9-809 (2022), and the UCC’s first-in-time priority rule.
Read the full summary
1. A performing construction surety need not show any mistake of fact to exercise its right of equitable subrogation. 2. A surety’s right to equitable subrogation is not a security interest subject to the Uniform Commercial Code (UCC), Minn. Stat. §§ 336.9-101 to 336.9-809 (2022), and the UCC’s first-in-time priority rule. Instead, through the doctrine of equitable subrogation, a performing surety has priority over a secured creditor as to contract funds created by the surety’s performance on its bond obligations. Reversed and remanded.
1Opinion of the Court
STATE OF MINNESOTA IN SUPREME COURT A23-1478 Court of Appeals Hennesy, J. Took no part, Procaccini, J. In re the Receivership of United Prairie Bank, Respondent, vs. Molnau Trucking LLC, et al., Defendants, Granite Re, Inc., Filed: July 16, 2025 Office of Appellate Courts Appellant. ________________________ Thomas H. Boyd, Andrew J. Steil, Kyle R. Kroll, Winthrop & Weinstine, P.A., Minneapolis, Minnesota, for respondent. Daniel R. Gregerson, Daniel A. Ellerbrock, Nicholas J. Sideras, Gregerson, Rosow, Johnson & Nilan, Ltd., Minneapolis, Minnesota, for appellant. Joseph J. Witt, Teresa E.…
2Cases cited25 opinions
- Prairie State Bank v. United StatesSupreme Court of the United States · 1896
- Pearlman v. Reliance InsuranceSupreme Court of the United States · 1962
- Emmert v. ThompsonSupreme Court of Minnesota · 1892
- Ram Mutual Insurance Co. v. RohdeSupreme Court of Minnesota · 2012
- SCI Minnesota Funeral Services, Inc. v. Washburn-McReavy Funeral Corp.Supreme Court of Minnesota · 2011
20 more not listed; retrieve them via the Exa API.