Cole v. Wells Fargo Bank National Ass'n
201 So. 3d 749
| Fla. Dist. Ct. App. | 2016Background
- Duane Cole and Susan Perkins appealed a final judgment of foreclosure entered in favor of Wells Fargo (as trustee) in Hernando County circuit court.
- After the defendants filed a notice of removal to federal court, the state trial court nevertheless entered the final judgment before the federal court remanded the case back to state court.
- Wells Fargo argued the case was not removable and the state court could proceed; defendants relied on the pending removal to federal court.
- The Fifth District examined precedent on the effect of a notice of removal on state-court jurisdiction, including post-1948 statutory text requiring the state court to proceed no further unless remanded.
- The court concluded that because the state court acted after removal and prior to remand, it lacked jurisdiction and the judgment is void.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether a state court retains jurisdiction to enter a final judgment after a notice of removal is filed and before the federal court remands | Cole/Perkins: removal divested state court jurisdiction; judgment entered after removal is void | Wells Fargo: case not removable, so state court retained jurisdiction and its judgment is valid | State court lacked jurisdiction after removal; judgment entered prior to remand is void and reversed |
| Whether the trial court could ignore the removal because removal was allegedly improper | Cole/Perkins: N/A (they sought effect of removal) | Wells Fargo: relied on precedent saying state court may proceed when removal is legally insufficient | Court relied on current 28 U.S.C. § 1446(d) and controlling authority to reject that argument; state court must stop pending remand |
Key Cases Cited
- Musa v. Wells Fargo Del. Tr. Co., 181 So. 3d 1275 (Fla. 1st DCA 2015) (state-court judgment entered after removal and before remand is void)
- Preston v. Allstate Ins. Co., 627 So. 2d 1322 (Fla. 3d DCA 1993) (filing of notice of removal divests state court of jurisdiction until remand)
- Maseda v. Honda Motor Co., 861 F.2d 1248 (11th Cir. 1988) (state court must cease proceedings after removal; later state proceedings void ab initio)
- Wilson v. Sandstrom, 317 So. 2d 732 (Fla. 1975) (discussing pre-1948 removal statute precedent)
- Metropolitan Cas. Ins. Co. v. Stevens, 312 U.S. 563 (1941) (older Supreme Court precedent on removal under pre-1948 statute)
- Empire World Towers, LLC v. CDR Créances, S.A.S., 89 So. 3d 1034 (Fla. 3d DCA 2012) (discussing sanctions and remedies for litigant misconduct)