Just the FAQ's

Although our reference staff fields an amazing variety of questions daily, family law and court procedures are the top two subject areas for frequently asked questions. Brief answers to our most popular question are posted online in our FAQ file, available to all.

The latest addition to our FAQ file is an old question but one of current interest because of economic news in recent months. This frequently asked question concerns a justice of the peace case related to mortgage foreclosure. First National Bank of Montgomery vs. Jerome Daly, sometimes called the Credit River case, is a decision often cited by those who practice "law on the edge".

In the late 1960s, attorney Jerome Daly was a defendant in an unlawful detainer action in the justice of the peace court in Credit River Township in Scott County, Minnesota. The First National Bank of Montgomery foreclosed on Daly's property and sought possession. The jury and the justice of the peace decided against the bank, agreeing with Daly's argument that the bank had not actually lent him any money, but had simply created credit on its books. Daly argued that since nothing of value had been advanced by the bank, it was not entitled to the property that secured the loan. The justice of the peace, Martin V. Mahoney, entered his decision in defiance of the Minnesota Supreme Court. For conspiracy theorists, we note he died "mysteriously" within 6 months of his decision. Ultimately, the decision of the justice of the peace court was nullified and Daly was subsequently disbarred.

This case made its way onto the Internet, where groups who oppose federal banking laws assert that the case invalidated the Federal Reserve and voided Federal Reserve notes. Even though it has no value as precedent, litigants continue to cite to the case, even as recently as 2007. See Sneed v. Chase Home Fin. LLC, 2007 U.S. Dist. LEXIS 46536, 2007 WL 1851674 (S.D. Cal. June 26, 2007).

In cooperation with Scott County Court Administration, the scanned documents from this case are available on our website. For more detailed information on the case, see our FAQ.

Back issues of Briefly are posted on the Law Library web site at http://www.lawlibrary.state.mn.us/newsletter/index.html.

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Minnesota State Law Library: Briefly...News From Your State Law Library - November 2007
http://www.lawlibrary.state.mn.us/newsletter/0711.html
Phone: (651) 296-2775; Fax: (651) 296-6740

Last Update: November 16, 2007
Links Checked: November 16, 2007