Brittany's Place Condominium Association, Inc. v. U.S. Bank, N.A.
205 So. 3d 794
| Fla. Dist. Ct. App. | 2016Background
- U.S. Bank filed mortgage foreclosure against Jose Gonzalez in 2009, alleging it was holder/servicer; Freddie Mac owned the note and first mortgage.
- Final foreclosure judgment awarded to U.S. Bank, which purchased the unit at the sale and took title in its name.
- After sale, dispute arose over U.S. Bank’s liability for unpaid condominium assessments; Brittany's Place sued to foreclose its assessment lien.
- U.S. Bank counterclaimed seeking safe-harbor protection under Fla. Stat. § 718.116(1)(b) and moved for summary judgment, asserting it was a subsequent holder (but not owner) of the note/mortgage.
- Trial court granted summary judgment for U.S. Bank; the district court reviewed whether ownership of the note/mortgage is required to qualify as a “first mortgagee or its successor or assignees” under the statute.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether ownership of the note and mortgage is required for entitlement to § 718.116(1)(b) limited liability | Brittany’s Place: "First mortgagee or successor/assignee" requires ownership of the loan (note + mortgage); a non-owner holder cannot claim safe harbor | U.S. Bank: a subsequent holder/possessor of the first mortgage (even if not the owner) is a "successor or assignee" entitled to the safe-harbor when statutory requirements are met | Court held ownership is not a prerequisite; a subsequent holder of the first mortgage who meets statutory requirements may qualify for limited liability |
Key Cases Cited
- Heart of Adoptions, Inc. v. J.A., 963 So. 2d 189 (Fla. 2007) (start statutory interpretation with text and read statute as a whole)
- Knowles v. Beverly Enters.-Fla., Inc., 898 So. 2d 1 (Fla. 2004) (give unambiguous statutory language its plain meaning)
- Holly v. Auld, 450 So. 2d 217 (Fla. 1984) (courts may not construe an unambiguous statute to alter its express terms)
- Beltway Capital, LLC v. Green COA, Inc., 153 So. 3d 330 (Fla. 5th DCA 2014) (discusses meaning of "first mortgagee" and lien priority)
- Bermuda Dunes Private Residences v. Bank of Am., 133 So. 3d 609 (Fla. 5th DCA 2014) (reversed summary judgment where material fact dispute existed)
- Taylor v. Bayview Loan Servicing, LLC, 74 So. 3d 1115 (Fla. 2d DCA 2011) (ownership of the mortgage follows the note; ownership concepts discussed)