Evergrene Partners, Inc. v. Citibank, N.A.
143 So. 3d 954
| Fla. Dist. Ct. App. | 2014Background
- In 2006 mortgagors executed two notes and mortgages later acquired by Citibank.
- Mortgagors defaulted; Citibank sued to foreclose and accelerated the debt in August 2007.
- Citibank voluntarily dismissed its foreclosure complaint in May 2012.
- Mortgagors quit-claimed the property to Evergrene Partners soon after the dismissal.
- Evergrene sued to cancel the mortgages, alleging enforcement was barred by the five-year statute of limitations and thus the mortgages were a cloud on title.
- Trial court dismissed Evergrene’s quiet-title complaint; appellate court affirmed, holding the mortgages remain enforceable because subsequent defaults within the limitations period permit new enforcement or acceleration.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the mortgages are unenforceable and must be canceled because the five-year statute of limitations has run | Evergrene: prior foreclosure and passage of time terminated enforceability; mortgages are a cloud on title | Citibank: mortgages mature in 2036 so the statutory lien termination runs five years after maturity; also subsequent defaults within five years revive enforceability and voluntary dismissal is not on the merits | Court: Held for Citibank — statute did not bar enforcement; subsequent defaults and voluntary dismissal permit future enforcement; quiet-title dismissed |
Key Cases Cited
- Singleton v. Greymar Assocs., 882 So.2d 1004 (Fla. 2004) (res judicata does not necessarily bar successive foreclosure suits; later defaults can support new enforcement)
- Star Funding Solutions, LLC v. Krondes, 101 So.3d 403 (Fla. 4th DCA 2012) (same principle regarding successive foreclosures)
- Kaan v. Wells Fargo Bank, N.A., 981 F.Supp.2d 1271 (S.D. Fla. 2013) (federal court applying Singleton to dismiss quiet-title claim where later payment defaults remained actionable)
- U.S. Bank Nat’l Ass’n v. Bartram, 140 So.3d 1007 (Fla. 5th DCA 2014) (applies Singleton to hold statute of limitations did not bar enforcement after an involuntary dismissal)
- Froman v. Kirland, 753 So.2d 114 (Fla. 4th DCA 1999) (voluntary dismissal is not an adjudication on the merits)