Heartwood 2, LLC v. Dori
208 So. 3d 817
| Fla. Dist. Ct. App. | 2017Background
- Heartwood 2, LLC (assignee of Wells Fargo) sued to foreclose a mortgage and to reform a special warranty deed that omitted the official-records book and page for the condominium declaration.
- The deed to Shay Dori omitted the recording information and included a placeholder sentence referencing a title commitment; the mortgage (and note) separately contained a full legal description including Book 23543, Page 3930.
- Dori defaulted on the loan; he admitted ownership and default but did not plead the deed-defect as an affirmative defense in his answer.
- Heartwood moved to amend to add the grantor as a necessary party for the reformation count; the trial court denied the renewed motion shortly before trial and later dismissed both the reformation count and, sua sponte, the foreclosure count without prejudice, reasoning reformation (impossible without the grantor) was required to enforce the mortgage.
- The trial court also entered a monetary judgment on the note (even though the foreclosure count sought only foreclosure). Heartwood appealed; the appellate court reversed and remanded for entry of a final judgment of foreclosure without a monetary judgment.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether foreclosure could be dismissed because the deed’s legal description omitted condominium recording info | Heartwood: mortgage contains full legal description and creates a valid lien; reformation unnecessary to foreclose | Dori: deed is insufficiently descriptive (omission) so title unclear and mortgage cannot be enforced absent deed reformation | Reversed — foreclosure should not have been dismissed; mortgage contained a sufficient description and created a valid lien |
| Whether trial court could rely on an unpled affirmative defense at trial to dismiss foreclosure | Heartwood: Dori waived any deed-defect defense by not pleading it; trial court erred to rely on it | Dori: raised at trial that reformation is required and grantor is indispensable | Held for Heartwood — unpled affirmative defenses are waived; court erred to base dismissal on that ground |
| Whether deed reformation was required to foreclose | Heartwood: no — mortgage’s description governs lien; reformation is irrelevant to foreclosure | Dori: reformation required to identify property and enforce mortgage | Held for Heartwood — reformation not required; mortgage alone can create enforceable lien |
| Whether trial court abused discretion by denying Heartwood’s renewed motion to amend to add grantor for reformation claim | Heartwood: renewed motion was filed after continuance, unopposed, well before rescheduled trial — denial was abuse | Trial court/Dori: late amendment would prejudice schedule and fairness; adding a party would delay trial | Majority: abused discretion in denying the renewed, unopposed motion filed promptly after continuance (but concurrence dissented on this point) |
Key Cases Cited
- S. Mgmt. & Dev., L.P. v. Gardner, 992 So.2d 919 (Fla. 4th DCA 2008) (affirmative defenses are waived if not pled)
- Boca Golf View, Ltd. v. Hughes Hall, Inc., 843 So.2d 992 (Fla. 4th DCA 2003) (involuntary dismissal based on an unpled defense is reversible)
- Sonnenblick-Goldman of Miami Corp. v. Feldman, 266 So.2d 48 (Fla. 3d DCA 1972) (an affirmative defense not raised by answer is waived)
- Sickler v. Melbourne State Bank, 159 So. 678 (Fla. 1935) (mortgage must contain sufficient description to create a specific lien)
- Antonelli v. Smith, 556 So.2d 1132 (Fla. 3d DCA 1989) (indispensable parties required for reformation actions)