Country Place Community Ass'n v. J.P. Morgan Mortgage Acquisition Corp.
51 So. 3d 1176
| Fla. Dist. Ct. App. | 2010Background
- J.P. Morgan Mortgage Acquisition Corp. filed a mortgage foreclosure action against Country Place and other defendants in Hillsborough County, attaching a copy of a note and mortgage showing First Franklin and MERS as mortgagee, but no recorded assignment to JPM and no evidence it owned the note or mortgage at filing.
- Country Place answered and argued JPM lacked standing because JPM did not own the note and mortgage; JPM produced no evidence of ownership during the action and admitted, via requests for admissions, that it had no evidence of ownership on the filing date.
- JPM did not respond to Country Place's summary-judgment motion; JPM's counsel failed to attend the hearing; the circuit court granted final summary judgment dismissing the foreclosure, with an instruction that a new suit must be filed.
- JPM did not move for rehearing or appeal the summary-judgment order; Country Place had previously served, but not filed, a copy of its attorney-fees motion under the safe-harbor provision of section 57.105(4).
- After entry of the adverse summary judgment, Country Place timely moved for attorney's fees under section 57.105(1), arguing JPM and its attorneys knew or should have known the action was unsupportable due to lack of standing.
- At the fee hearing, JPM's counsel claimed possession of the original note and mortgage; the circuit court reserved entitlement and ultimately denied fees, concluding JPM might prevail in a new action, while noting a fee amount of $6,945 for Country Place.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether JPM's foreclosure action was entitled to fees under 57.105(1). | Country Place argued JPM lacked standing at filing, making the claim unsupportable and warranting fees. | JPM argued it could still prevail in a future action; thus entitlement to fees should be denied. | Yes; JPM lacked standing at filing, so the action was unsupported and Country Place was entitled to fees. |
Key Cases Cited
- Bank of N.Y. v. Williams, 979 So.2d 347 (Fla. 1st DCA 2008) (standing issues can defeat foreclosure action)
- Jeff-Ray Corp. v. Jacobson, 566 So.2d 885 (Fla. 4th DCA 1990) (standing to bring foreclosure action must be proven)
- In re Forfeiture of: 1997 Jeep Cherokee, 898 So.2d 223 (Fla. 2d DCA 2005) (fees may be awarded for unsupported claims after amendment)
- Yakavonis v. Dolphin Petroleum, Inc., 934 So.2d 615 (Fla. 4th DCA 2006) (fee-shifting provisions apply to unfounded claims)
- Bridgestone/Firestone, Inc. v. Herron, 828 So.2d 414 (Fla. 1st DCA 2002) (post-amendment statute allows fee for unsupported claims/defenses during proceedings)
- Barthlow v. Jett, 930 So.2d 739 (Fla. 1st DCA 2006) (fees may be awarded on a particular claim even if overall case may later prevail)
- Walker v. Cash Register Auto Ins. of Leon County, Inc., 946 So.2d 66 (Fla. 1st DCA 2006) (statutory standard permits fee for unfounded claims/defenses)
- Boca Burger, Inc. v. Forum, 912 So.2d 561 (Fla. 2005) (statute applies to any claim or defense, not just the entire action)