Noel v. James B. Nutter & Co.
17-0071 & 16-2901
| Fla. Dist. Ct. App. | Nov 1, 2017Background
- Two consolidated foreclosure cases (Henry and Noel) where homeowners filed counterclaims alleging lenders failed to obtain HUD approval before filing suit. Counsel for both appellants was the same.
- Lenders served motions for attorney’s fees under the section 57.105 “safe harbor,” asserting the counterclaims were frivolous because HUD approval predated suit.
- Trial court granted entitlement to fees and issued identical standing orders setting short deadlines for objections and warning failure to object would waive challenges to the fee amounts.
- Counsel’s office failed to calendar the standing-order deadlines (attributed to assistants and disruptions from Hurricane Matthew); no written objections to fee amounts were filed.
- Final judgments awarding attorney’s fees and costs were entered against Henry and Noel; both moved under Fla. R. Civ. P. 1.540(b) to vacate the fee judgments based on excusable neglect, which the trial court denied.
- The appellate court reversed, holding the affidavits established excusable neglect (clerical/secretarial breakdown) and remanded so appellants may object to fee submissions per the standing orders.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether counsel’s failure to timely object to fee amounts due to uncalendared deadlines constitutes excusable neglect under Fla. R. Civ. P. 1.540(b) | Henry/Noel: assistant clerical error and Hurricane Matthew disrupted calendaring; affidavits show inadvertent, excusable neglect and entitlement to relief to object to fees | Reverse Mortgage/Nutter: failure to object waived challenges; no excusable neglect shown so final fee judgments should stand | Reversed: affidavits showing a clerical calendaring breakdown and hurricane disruption constitute excusable neglect; trial court abused discretion by denying 1.540(b) relief |
Key Cases Cited
- Ocwen Loan Servicing, LLC v. Brogdon, 185 So. 3d 627 (Fla. 5th DCA 2016) (examining excusable neglect under Rule 1.540(b))
- SunTrust Mortg. v. Torrenga, 153 So. 3d 952 (Fla. 4th DCA 2014) (calendaring failures can constitute excusable neglect)
- Acosta v. Deutsche Bank Nat’l Tr. Co., 88 So. 3d 415 (Fla. 4th DCA 2012) (standard of review for 1.540(b) denials)
- Elliott v. Aurora Loan Servs. LLC, 31 So. 3d 304 (Fla. 4th DCA 2010) (excusable neglect shown by clerical error requires relief)
- Paladin Props. v. Family Inv. Enters., 952 So. 2d 560 (Fla. 2d DCA 2007) (definition of honest mistake in litigation context)
- Somero v. Hendry Gen. Hosp., 467 So. 2d 1103 (Fla. 4th DCA 1985) (excusable neglect may arise from secretarial error or system failure)
- J.J.K. Int’l, Inc. v. Shivbaran, 985 So. 2d 66 (Fla. 4th DCA 2008) (failure to appear due to secretary’s mistake is excusable neglect)
- Wilson v. Woodward, 602 So. 2d 547 (Fla. 2d DCA 1992) (secretary’s failure to calendar hearing justified 1.540(b) relief)
- Carter, Hawley, Hale Stores, Inc. v. Whitman, 516 So. 2d 83 (Fla. 3d DCA 1987) (breakdown in office practice can be excusable neglect)
- Troiano v. Tizon, 632 So. 2d 251 (Fla. 3d DCA 1994) (appeal from denial of 1.540(b) relief does not reach merits of underlying judgment)
- Shields v. Flinn, 528 So. 2d 967 (Fla. 3d DCA 1988) (same)
