From our private database of 14,200+ case briefs...
Meincke v. Northwest Bank & Trust Co.
Iowa Supreme Court
756 N.W.2d 223 (Iowa 2008)
Sandra Marti and Craig Meincke (Craig) owned Scramm Enterprises (Scramm). Scramm obtained two loans from Rock Island Bank (Rock Island), and in return Scramm granted Rock Island mortgages on Scramm’s property. Subsequently, Janice Meincke (Meincke) (plaintiff), Marti’s mother and Craig’s aunt, loaned Scramm money, and in return Scramm gave Meincke a mortgage on Scramm’s property. Subsequently, Northwest Bank & Trust Co. (Northwest) (defendant) loaned Scramm additional money, and in return Scramm gave Northwest another mortgage on Scramm’s property. Finally, Scramm requested additional funds from Northwest in order to pay off the loans from Rock Island. Northwest agreed to loan Scramm the additional funds, but only if Northwest could acquire first priority status on Scramm’s mortgaged property. As it stood at the time, Rock Island had first priority, Meincke had second priority, and Northwest was third. If Scramm used the requested funds to pay off the Rock Island loans, Meincke would have first priority and Northwest would have second, absent the subordination agreement that Northwest requested as a condition. Meincke testified that Craig called her and told her that she had to sign a subordination agreement “to be second in line.” Meincke signed the agreement without any further discussion about what the agreement did. Meincke testified that she signed the agreement in order to get her money back, and that she did not think of her signing the agreement as helping out Marti and Craig. She did admit that the agreement must have helped Marti and Craig in some way since they asked her to sign it. As a result of the subordination agreement granting Northwest first priority on the mortgage, Northwest loaned the additional funds to Scramm, and Scramm paid off the Rock Island loans. Eventually, Northwest foreclosed on the Scramm property. The proceeds went to Northwest on account of the subordination agreement. Meincke received nothing. Meincke then filed suit against Northwest, alleging that the subordination agreement was invalid. The trial court ruled in favor of Northwest. The Court of Appeals of Iowa reversed, finding that the subordination agreement lacked consideration. Northwest appealed.
Rule of Law
Holding and Reasoning (Wiggins, 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 240,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 14,200 briefs, keyed to 189 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.