Johnson v. First National Bank
United States Court of Appeals for the Eighth Circuit
719 F.2d 270 (1983)
Curtis and Gloria Jean Johnson (defendants), the owners of agricultural concerns, executed first and second mortgages to First National Bank of Montevideo (First National) (plaintiff) in security for promissory notes totaling $950,000. In September 1980, the Johnsons defaulted on their loans and First National initiated foreclosure proceedings. At an auction on October 31, 1980, First National purchased the mortgaged property for $566,355.34. Under Minnesota law, which applied to the foreclosure, the Johnsons were afforded a one-year redemption period in which they could repurchase the property for the price paid by First National plus interest. If they did not so repurchase, title to the property would automatically vest in First National without any further action. Approximately three weeks before the October 31, 1981, expiration date of the one-year redemption period, the Johnsons filed a joint bankruptcy petition under Chapter 11. They concurrently filed an adversary complaint against First National, alleging that they held substantial equity in the mortgaged property and requesting that the court stay expiration of the redemption period. Based on Curtis Johnson’s testimony that the property was valued at $2,720,000 and encumbered to the amount of $2,043,000, the court found that the Johnsons possessed substantial equity and that, pursuant to 11 U.S.C. § 105, an exigency warranted suspending the Minnesota exemption period until further order or the conclusion of bankruptcy proceedings involving the property. The district court affirmed. First National appealed.
Rule of Law
Holding and Reasoning (Ross T. Roberts, J.)
What to do next…
Unlock this case brief with a free (no-commitment) trial membership of Quimbee.
You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 97,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read our student testimonials.
Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.
Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students. Read more about Quimbee.
Here's why 170,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 13,800 briefs, keyed to 187 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.