245 So. 3d 925
Fla. Dist. Ct. App.2018Background
- The Association sued unit owners Craig and Nicole Snyder for unpaid condominium assessments; JP Morgan Chase (the Snyders’ mortgagee) had a prior mortgage and was named as a defendant but was not properly served.
- The trial court entered a summary final judgment for the Association on June 16, 2014; the unit was sold at foreclosure and 90 CWELT-2008 LLC (CWELT) purchased the unit, receiving a certificate of sale and then certificate of title.
- JP Morgan later moved to quash service and to set aside the final judgment, asserting defective service; the trial court vacated the final judgment on June 17, 2015, finding the judgment void for lack of service.
- CWELT filed an appeal of the vacatur but failed to prosecute and the appeal was dismissed; more than a year later, the trial court vacated the certificates of sale and title, and CWELT appealed that order.
- The core dispute: whether the trial court could vacate postjudgment foreclosure sale documents when the underlying final judgment was later declared void for lack of service, and whether CWELT’s status as a bona fide purchaser protected its title.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the trial court properly vacated the final judgment as untimely or procedurally improper | CWELT contended the motion to vacate the final judgment was untimely | JP Morgan argued service was defective rendering the judgment void | CWELT abandoned this challenge by failing to pursue its prior appeal; court treated the vacatur as effective |
| Whether a bona fide purchaser (CWELT) keeps title despite vacatur of the judgment | CWELT argued it was a bona fide purchaser without notice, so section 702.036 should protect its title | JP Morgan argued the underlying judgment was void for lack of service so protections for bona fide purchasers do not apply | Court held section 702.036 inapplicable because the final judgment was void (not merely voidable), so CWELT’s bona fide purchaser claim failed |
| Whether the trial court could vacate the certificate of sale and certificate of title after vacating the final judgment | CWELT argued vacating postjudgment certificates unduly affected purchaser’s title | JP Morgan argued vacating postjudgment orders was necessary follow-through after the judgment was voided | Court held vacating the certificates was a proper exercise of discretion as necessary relief flowing from the vacatur of the void judgment |
| Whether the trial court abused its discretion in rescinding postjudgment instruments | CWELT asserted the court’s action was an abuse because it stripped good title | JP Morgan asserted relief was within the court’s discretion under Florida Rule 1.540 and precedent | Court found no gross abuse of discretion and affirmed vacatur of the certificates |
Key Cases Cited
- Del Conte Enters., Inc. v. Thomas Publ’g Co., 711 So. 2d 1268 (Fla. 3d DCA 1998) (a judgment entered without due service of process is void)
- Demars v. Vill. of Sandalwood Lakes Homeowners Ass’n, Inc., 625 So. 2d 1219 (Fla. 4th DCA 1993) (bona fide purchaser retains title only where judgment is voidable, not void)
- Castro v. Charter Club, Inc., 114 So. 3d 1055 (Fla. 3d DCA 2013) (service defects can render a judgment void)
- Rodriguez-Faro v. M. Escarda Contractor, Inc., 69 So. 3d 1097 (Fla. 3d DCA 2011) (same)
- Austin v. B.J. Apparel Corp., 523 So. 2d 675 (Fla. 3d DCA 1988) (postjudgment relief appropriate where based on vacated prior judgment)
- Nationsbanc Mortg. Corp. v. Gardens North Condo. Ass’n, Inc., 764 So. 2d 883 (Fla. 4th DCA 2000) (vacatur of certificates proper when based on voided judgment)