No. 22-3201 ___________________________

In re: Vera T. Welte Testamentary Trust

Debtor

------------------------------ The Security National Bank of Sioux City, IA, as Personal Representative of the estate of Roger Rand

Appellee

v.

Vera T. Welte Testamentary Trust

Appellant

Carol Dunbar

Trustee ___________________________

No. 22-3332 ___________________________

In re: Vera T. Welte Testamentary Trust

Debtor

------------------------------ The Security National Bank of Sioux City, IA, as Personal Representative of the estate of Roger Rand

Appellant

v.

Vera T. Welte Testamentary Trust

Appellee

Carol Dunbar

Trustee ____________

Appeal from United States District Court for the Northern District of Iowa - Western ____________

Submitted: November 16, 2023 Filed: March 1, 2024 ____________ Before COLLOTON, BENTON, and SHEPHERD, Circuit Judges. ____________ SHEPHERD, Circuit Judge.

In this bankruptcy matter, the Vera T. Welte Testamentary Trust contests the enforceability of dragnet clauses within mortgages used to secure loans funding Frank Welte’s farming operations. The Estate of Roger Rand—a creditor—believes the clauses are enforceable. After the parties twice litigated that dispute, the Iowa Court of Appeals and the United States Bankruptcy Court for the Northern District of Iowa reached conflicting conclusions. Following an appeal of the bankruptcy court’s order, the United States District Court for the Northern District of Iowa gave preclusive effect to the judgment of the Iowa Court of Appeals concerning the

-2- enforceability of the clauses and the amounts owed thereunder. Now, the Trust and the Estate both appeal the district court’s order, each asserting various points of error. Because we lack jurisdiction over the appeal, it must be dismissed.

I.

Frank Welte is the sole beneficiary of the Vera T. Welte Testamentary Trust. His brother, Claire Welte, is the trustee. The Trust’s primary asset is 160 acres of farmland that were leased to Frank during the period of time at issue in this case. To finance his farming operations, Frank borrowed money from Roger Rand, another Iowa farmer. To secure the loans made to Frank, Claire, as trustee, signed mortgages pledging the Trust’s property as security. Despite executing promissory notes which stated a principal amount, Frank borrowed more money than was reflected in them. Moreover, the mortgage documents—which Claire did not read before signing—contained dragnet clauses, 1 which secured not only the amount owed on the corresponding note, but all other then-existing obligations, as well as future obligations. And according to Claire, he assumed that he could only validly mortgage the Trust’s income, not its property.

After Rand’s death in 2016, and after “problems arose with Frank’s repayments,” Rand’s Estate2 initiated an Iowa state court forec