Aetna Life Insurance v. McElvain

Aetna Life Insurance Company (Aetna) appeals the lower court’s order in this case originally brought by Aetna to foreclose on its first mortgage on certain Montana farmland. The Fallon County District Court ruled that Aetna could foreclose but held that Aetna had defrauded respondents Shepherds, the second mortgagees. The court *140awarded Shepherds the first $149,821.19 (plus $40,000 for attorney’s fees) from the foreclosure sale of the ranch. This appeal raises issues of whether a South Dakota district court judgment collaterally es-tops Shepherds from successfully relitigating the issue of…