Opinion ID: 2055394
Heading Depth: 1
Heading Rank: 3

Heading: Ruud Matter.

Text: By mortgaging their farm to the Federal Land Bank of St. Paul (Federal Bank), the Ruuds received $335,000.00 in the form of bank drafts or checks that they used to satisfy obligations to various creditors. On behalf of the Ruuds, Nora brought suit against the Federal Bank on various grounds based on Nora's money theory, whereby she argued the Federal Bank did not loan money, but merely extended credit. In granting summary judgment in favor of the Federal Bank, a Kandiyohi District Court noted Nora's money argument goes well beyond the imaginative into the depths of absurdity. The court assessed fees of $1,000.00 against Nora personally because all but one count of the Complaint was frivolous, the litigation was undertaken to buy time and to delay efforts to recover certain farm land, and success on the merits was never anticipated. Nora paid the Federal Bank $800.00 in settlement of the attorney fees assessment. Because the referee found Nora brought the Ruud litigation primarily as a delay tactic and her money theory was not asserted in good faith, he concluded she violated MRPC 3.1 (frivolous claim) and 8.4(d) (conduct prejudicial to administration of justice). Although Nora acted upon her subjective beliefs and her personally held theories as to what the law should be, she stated at oral argument she now can distinguish political arguments that are improperly made from legal theories that are appropriately brought.