Bank of New York Mellon v. Reyes
126 So. 3d 304
| Fla. Dist. Ct. App. | 2013Background
- Bank forecloses on mortgage securing a 293,500 promissory note; modification alleged in 2008.
- Borrowers Reyes counterclaim that modification kept mortgage current and that foreclosure breached the modification.
- Bank moves to dismiss counterclaim; case dismissed and lis pendens canceled in December 2009.
- Reyes move for default in February 2010; Bank had allegedly failed to respond to counterclaim.
- Final default judgment entered February 2, 2011; judgment holds note null and void and imposes damages/fees.
- Bank moves under Rule 1.540(b) to vacate; trial court denies; appellate court reverses, voiding judgment.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the final default judgment is void for relief beyond pleadings | Reyes | Bank | Judgment void; must be vacated |
| Whether counterclaim supports rescission or modification of mortgage | Reyes | Bank | Counterclaim lacks grounds for rescission; relief outside pleadings improper |
| Whether the note can be invalidated without affecting the mortgage | Reyes | Bank | Note may be treated separately; mortgage not properly nullified by note invalidation |
| Whether Rule 1.540(b) relief was properly invoked | Bank | Reyes | Rule 1.540(b) proper; judgment void and vacated |
Key Cases Cited
- Mullne v. Sea-Tech Constr., Inc., 84 So.3d 1247 (Fla. 4th DCA 2012) (judgment outside pleadings is void; lack of jurisdiction)
- Homestead-Miami Speedway, LLC v. City of Miami, 828 So.2d 411 (Fla. 3d DCA 2002) (courts cannot grant relief not requested in pleadings)
- Cardinal Inv. Gp., Inc. v. Giles, 813 So.2d 262 (Fla. 4th DCA 2002) (courts cannot grant relief not requested in the pleadings)
- Bd. of Regents v. Stinson-Head, Inc., 504 So.2d 1374 (Fla. 4th DCA 1987) (default admissions; limitations on relief and pleadings)
- Int'l Realty Assocs. v. McAdoo, 99 So.117 (Fla. 1924) (cancellation or rescission require independent grounds)