Llano Financing Group, LLC v. Theodore F. Petit
230 So. 3d 141
| Fla. Dist. Ct. App. | 2017Background
- In 2004 appraiser Theodore Petit valued a Jacksonville home at $216,000; SunTrust funded a $172,000 mortgage relying on that appraisal.
- SunTrust later sold the loan to an investment trust; the borrower defaulted, foreclosure followed, and the trust obtained title.
- In 2014 the trust (through a series of transfers, ultimately Llano Financing Group) sold the property at a loss and then discovered the allegedly negligent 2004 appraisal.
- Llano sued Petit in 2015 for professional negligence, negligent misrepresentation, and negligent supply of false information, alleging the faulty appraisal caused the losses.
- Petit moved to dismiss based on Florida’s statutes of limitations; the trial court granted dismissal, and Llano appealed.
- The primary legal question: when did the four-year statute of limitations for negligence claims begin to run for a lender’s claim based on a negligent appraisal—at funding (2004) or when the loss was realized (post-foreclosure sale, ~2014)?
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| When did the 4-year negligence limitations period begin to run for a lender’s negligent-appraisal claim? | Accrual occurs when damages crystallize—i.e., when the property was sold at a loss (post-foreclosure), so the 2015 suit was timely. | Accrual occurred when SunTrust funded the loan relying on the faulty appraisal (2004); damages existed then and the claim accrued immediately. | The court held accrual occurred at funding: the injury (diminution in the loan’s value) existed when the loan closed, so the 4‑year period began in 2004 and the 2015 suit was time-barred. |
Key Cases Cited
- Kellermeyer v. Miller, 427 So. 2d 343 (Fla. 1st DCA 1983) (diminution in value at time of transaction supplies damage element for accrual)
- Davis v. Monahan, 832 So. 2d 708 (Fla. 2002) (limitations period accrues when last element of cause of action occurs)
- TCF Nat’l Bank v. Mkt. Intelligence, Inc., 812 F.3d 701 (8th Cir. 2016) (lender holds an undersecured debt from the moment it makes a loan based on inflated value)
- Peat, Marwick, Mitchell & Co. v. Lane, 565 So. 2d 1323 (Fla. 1990) (accrual may wait for resolution of underlying proceeding where negligence cannot be shown until then)
- Blumberg v. USAA Cas. Ins. Co., 790 So. 2d 1061 (Fla. 2001) (applying Peat Marwick where underlying dispute had to be resolved before malpractice claim accrued)