AR6, Bank of New York as Successor in Interest to JP Morgan Chase Bank, N.A.
178 So. 3d 67
Fla. Dist. Ct. App.2015Background
- Borrower (Suzanne Peoples) executed a note and mortgage payable to America’s Wholesale Lender (AWL).
- SAMI II Trust filed a foreclosure complaint in Sept. 2007 alleging it was owner and holder of the note and mortgage; the copy of the note attached to that complaint was unendorsed and payable to AWL.
- In Jan. 2008 and Aug. 2009 the Trust filed versions of the original note showing an undated blank endorsement, but the Trust’s witness could not say when the endorsement was made.
- An assignment recorded after the complaint bore a relation-back date but had a later signature date and was not admitted into evidence.
- Borrower asserted lack of standing as an affirmative defense and moved for involuntary dismissal after the Trust presented its case; the trial court denied the motion and entered a final judgment of foreclosure.
- The Fourth District reversed, holding the Trust lacked standing to foreclose when the complaint was filed because it had not shown possession of an endorsed (or properly transferred) note at that time.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Did the Trust have standing to foreclose when the complaint was filed? | Trust alleged it was the owner and holder of the note and mortgage as pleaded in the complaint. | Borrower argued the note attached to the complaint was unendorsed and later endorsements were undated, so Trust lacked standing at filing. | No—Trust lacked standing at the time of filing because it failed to prove possession of an endorsed or blank-endorsed note before filing. |
| Can standing acquired after filing cure initial lack of standing? | Trust implied subsequent possession/assignment cured any defect. | Borrower argued post-filing acquisition cannot retroactively confer standing. | No—post-filing acquisition does not cure lack of standing at inception; case must show standing when complaint was filed. |
| Does a blank endorsement without proof of timing establish standing at filing? | Trust relied on original note showing a blank endorsement introduced later at trial. | Borrower noted endorsement was undated and Trust’s witness could not date it. | No—undated blank endorsement introduced after filing without proof of timing is insufficient to prove standing at filing. |
| Do backdated or relation-back assignments alone establish standing? | Trust relied on assignment (with relation-back date) to show title/standing. | Borrower argued such documents, especially if signed later or not admitted, do not establish standing. | No—backdated assignments standing alone do not establish standing; effective date is signature date and admissible proof is required. |
Key Cases Cited
- Dixon v. Express Equity Lending Grp., LLLP, 125 So. 3d 965 (4th DCA 2013) (standard of de novo review and standing requirement in foreclosure actions)
- McLean v. JP Morgan Chase Bank Nat’l Ass’n, 79 So. 3d 170 (4th DCA 2012) (plaintiff must be note holder at time complaint filed; note must bear special or blank endorsement if payee differs)
- Nationstar Mortg., LLC v. [unnamed], 153 So. 3d 351 (1st DCA 2014) (plaintiff failed to prove standing when complaint attached unendorsed copy and original with undated blank endorsement was introduced later)
- LaFrance v. U.S. Bank Nat’l Ass’n, 141 So. 3d 754 (4th DCA 2014) (standing cannot be established retroactively after filing)
- Matthews v. Fed. Nat’l Mortg. Ass’n, 160 So. 3d 131 (4th DCA 2015) (backdated assignment alone does not establish standing)
- Wright v. Deutsche Bank Nat’l Trust Co., 152 So. 3d 1289 (4th DCA 2015) (reversal where plaintiff lacked standing at inception)