Graves v. Wayman

When Amos Graves was anticipating losing his home to foreclosure, Michael Wayman persuaded him to enter into a transaction that would purportedly save his home. Graves executed a quitclaim deed in favor of a corporate entity under Wayman’s control, but, the next day, sent a cancellation notice to Wayman, as was his statutory right. Wayman refused to cancel the transaction. When Wayman ceased making mortgage payments, First Minnesota Bank, the eventual mortgagee of the property, foreclosed on and purchased the home. Graves sued Wayman, Wayman’s companies, and First Minnesota, alleging that First Minnesota’s mortgage was invalid because Graves did not lawfully sell his home to Wayman. The district court awarded the property to First Minnesota, concluding that the bank was a bona fide purchaser. The court of appeals reversed and awarded the property to Graves, concluding that First Minnesota did not qualify as a bona fide purchaser. The Supreme Court affirmed in part and reversed in part, holding (1) First Minnesota was not entitled to rights in the property as a bona fide purchaser; but (2) the court of appeals erred in concluding that Graves should be awarded title to the property free of any interest of First Minnesota. Remanded. View "Graves v. Wayman" on Justia Law