Associated Bank, National Association v. Estate of William E. Kelm et al

Filing 112

ORDER: Associated Bank's Motion for Default and Summary Judgment [Docket No. 53 ] is DENIED as moot. Associated Bank's Second Motion for Default and Summary Judgment [Docket No. 91 ] is GRANTED. Associated Bank's Second Motion fo r Entry of an Order Reducing the Mortgagors' Redemption Period to Five Weeks Pursuant to Minn. Stat. § 582.032 [Docket No. 96 ] is GRANTED. (Please see order for complete details.) (Written Opinion) Signed by Judge Joan N. Ericksen on July 13, 2015. (CBC)

UNITED STATES DISTRICT COURT
DISTRICT OF MINNESOTA
Associated Bank, N.A.,
Plaintiff,
v.

Civil No. 14-524 (JNE/LIB)
ORDER

Estate of William E. Kelm, Estate of Judith
A. Kelm, Unknown Heirs of William E.
Kelm and Judith A. Kelm, State of
Minnesota, United States of America,
Capital One Bank, Linda Kelm, Mark Kelm,
J. Doe I-V, and XYZ Co. I-V,
Defendants.
This is an action to foreclose a mortgage. Associated Bank, N.A., brought it in
state court. The United States, the sole defendant that has appeared in this action,
removed it from state court. After the United States and Associated Bank had stipulated
to the entry of an order for judgment, Associated Bank moved for default and summary
judgment. It also moved to reduce the mortgagors’ redemption period to five weeks. See
Minn. Stat. § 582.032. The Court heard Associated Bank’s motions in January 2015. At
that hearing, the Court granted Associated Bank leave to amend its complaint.
Associated Bank did so, naming the mortgagors’ daughter and son as defendants.
Associated Bank filed another motion for default and summary judgment, 1 as well as
another motion to reduce the mortgagors’ redemption period to five weeks. The Court
grants the motions.

1

Associated Bank’s first motion for default and summary judgment is denied as

moot.
1

Associated Bank requested that a money judgment of $40,685.78, as of July 13,
2015, be entered. The amount requested includes $27,982.46 for amounts due under a
note as of May 15, 2015; $202.37 for interest from May 15 to July 13, 2015; $10,975.75
for attorney fees; and $1,525.20 for costs. The requested attorney fees include hours
devoted to Associated Bank’s motion to dismiss this action without prejudice. At the
January 2015 hearing, the Court stated that Associated Bank would not be awarded
attorney fees for the time devoted to the bank’s motion to dismiss the action without
prejudice. The Court deducts $1,150.25 from the requested attorney fees. An additional
deduction is appropriate to account for unreasonable hours in the attorney fees requested.
For example, 6.5 hours were devoted to drafting Associated Bank’s second motion for
summary and judgment, as well as its second motion to reduce the mortgagors’
redemption period to five weeks. The second motions are similar to the motions heard in
January 2015. The Court awards attorney fees of $8,000 to Associated Bank. The Court
also awards Associated Bank $1,525.20 for costs; $27,982.46 for amounts due under the
note as of May 15, 2015; and $202.37 for interest from May 15 to July 13, 2015.
Based on the files, records, and proceedings herein, and for the reasons stated
above, IT IS ORDERED THAT:
1.
Associated Bank’s Motion for Default and Summary Judgment [Docket
No. 53] is DENIED as moot.
2.
Associated Bank’s Second Motion for Default and Summary Judgment
[Docket No. 91] is GRANTED.
3.
Associated Bank’s Second Motion for Entry of an Order Reducing the
Mortgagors’ Redemption Period to Five Weeks Pursuant to Minn. Stat. § 582.032
[Docket No. 96] is GRANTED.

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4.
A money judgment (the “Outstanding Judgment”) shall be entered in favor
of Associated Bank and against Defendants Estate of William E. Kelm and Estate of
Judith A. Kelm in the amount of $37,710.03, consisting of the following:
Amount due under Note as of May 15, 2015
Interest from May 15, 2015 to July 13, 2015
Attorney fees
Costs
Total

$ 27,982.46
$
202.37
$ 8,000.00
$ 1,525.20
$ 37,710.03

5.
Associated Bank is entitled to a foreclosure of the mortgage executed by
William E. Kelm and Judith A. Kelm, dated March 1, 1999, and recorded March 12,
1999, in the Office of the Goodhue County Recorder as document no. 427212 (the
“Mortgage”) that conveyed and mortgaged the property legally described as follows (the
“Property”):
Lot 37, Glen View Addition to the City of Red Wing, Minnesota.
6.
The Outstanding Judgment is adjudged to be a lien upon the Property,
which lien is prior and superior to the right, title and interest of the defendants and all
persons claiming through them.
7.
The Sheriff of Goodhue County is directed to sell the Property in one parcel
in the manner and form provided by Minnesota law. In the event that Associated Bank
shall make a “full debt bid” at the foreclosure sale, it may bid in such further costs and
attorney fees incurred, subject to confirmation by the Court.
8.
Associated Bank has presented evidence that the Property is abandoned and
subject to a five-week redemption period pursuant to Minn. Stat. § 582.032; accordingly
the sale shall be made subject to a mortgagor’s redemption period of five weeks from the
date of the Court’s order confirming the sale.
9.
Notwithstanding the mortgagor’s redemption period, the United States may
redeem within 120 days from the date of the Court’s order confirming the sale.
10.
The proceeds of the sale shall be applied first in payment of the costs and
expenses of the sale, and then to the payment of the amount adjudged to be due, plus
interest, and any overage from said sale shall be paid into the Court to abide the further
order of the Court with respect thereto.
11.
The Sheriff shall make a report of said sale, and said sale shall be subject to
confirmation by the Court. Upon confirmation of sale, the Sheriff shall execute and
deliver to the purchaser a certificate of sale.

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12.
Upon confirmation of sale, the Clerk of Court shall satisfy the Outstanding
Judgment to the extent of the sum bid for the Property, less costs and expenses of the
sale, and less further attorney fees as determined by the Court.
13.
All of the defendants and all persons claiming through them shall be
forever barred and foreclosed from any interest, lien or equity of redemption in the
Property except the right of redemption as provided by law.
14.
In the event that no party entitled to redeem as provided by law redeems
from the sale, then the sale of the Property pursuant to this Order for Judgment will divest
the lien of the United States against the Property pursuant to Minnesota law and the
operation of 28 U.S.C. § 2410.
15.
The Court reserves jurisdiction of this action for all further appropriate
proceedings.
LET JUDGMENT BE ENTERED ACCORDINGLY.
Dated: July 13, 2015
s/Joan N. Ericksen
JOAN N. ERICKSEN
United States District Judge

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