Bank of New York Mellon v. Beaufort
238 So. 3d 365
| Fla. Dist. Ct. App. | 2017Background
- BNYM filed a residential mortgage foreclosure in Jan 2014, attaching a copy of the promissory note (original executed 2007) endorsed in blank and the mortgage.
- A Bank of America, N.A. (BANA) assistant VP signed the statutory possession certificate and verified the complaint in Sept 2013, certifying BANA possessed the original note as BNYM’s servicer/attorney-in-fact.
- Ditech (formerly Green Tree) later serviced the loan (began Dec 2013); a Ditech representative (Braithwaite) testified about Ditech’s power of attorney to act for BNYM and the loan "boarding" process that incorporated prior servicer records.
- Braithwaite authenticated payment history, default notice, and other business records as made in the ordinary course; the Borrowers stipulated to admission of the note and mortgage and did not present affirmative proof contradicting amounts due.
- At the close of BNYM’s case the Borrowers moved for involuntary dismissal arguing BNYM lacked standing at filing; the trial court granted the motion and dismissed. BNYM appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether BNYM had standing to foreclose at the time the suit was filed | BNYM: BANA possessed the original note as attorney‑in‑fact when the possession certificate and verified complaint were executed; original note was produced and authenticated | Borrowers: BNYM was not holder or entitled to enforce the note at filing; standing not proven | Reversed — evidence (possession certificate, original note, servicer POA and testimony) established prima facie standing at filing |
| Whether a successor servicer’s witness and business records provided a sufficient foundation for admission/authentication of loan records | BNYM: Ditech witness explained boarding procedures and authenticated records as business records; prior‑servicer testimony not required | Borrowers: Records required testimony from prior servicer to establish accuracy and possession | Reversed — successor servicer testimony about verification/boarding satisfied foundational requirements for records admissibility and authentication |
Key Cases Cited
- Tylinski v. Klein Auto., 90 So. 3d 870 (Fla. 3d DCA 2012) (directed verdict standard)
- Nationstar Mortg., LLC v. Wing, 210 So. 3d 216 (Fla. 5th DCA 2017) (appellate review and presumptions when reviewing directed‑verdict rulings)
- Bank of New York Mellon v. Johnson, 185 So. 3d 594 (Fla. 5th DCA 2016) (successor servicer testimony can establish sufficient foundation for records)
- Le v. U.S. Bank, 165 So. 3d 776 (Fla. 5th DCA 2015) (current servicer witness may testify about prior servicer records if foundational requirements met)
- Nationstar Mortg. v. Berdecia, 169 So. 3d 209 (Fla. 5th DCA 2015) (discussing foundational proof for business records)
- Bank of New York Mellon v. Heath, 219 So. 3d 104 (Fla. 4th DCA 2017) (authentication of original note and blank endorsement can establish standing)