252 So. 3d 804
Fla. Dist. Ct. App.2018Background
- Owner Ila Weiner mortgaged a Mayfair House condominium to Regions Bank; mortgage recorded before the tax sale.
- Taxes went unpaid; property sold at tax deed sale on June 12, 2014, producing a surplus of $92,519.89 held by the court clerk.
- Global Discoveries, assigned Regions Bank’s claim, and Rahimi (trustee of the Mayfair 555 Trust) both sued to claim the surplus; actions were consolidated and funds marked “do not disburse.”
- While litigation was pending, Regions Bank recorded a release of mortgage (Jan. 14, 2016). Global Discoveries moved for summary judgment asserting the bank’s priority to the surplus.
- Trial court granted summary judgment to Global Discoveries; appellate court reviewed statutory interpretation de novo and affirmed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Which date determines who is entitled to tax-sale surplus? | Rahimi: entitlement determined when the court adjudicates competing claims (post-sale); Regions’ later release means no entitlement. | Global Discoveries/Regions: entitlement determined at time of tax deed sale; mortgagees of record at sale are entitled. | Entitlement is determined at time of the tax deed sale; Regions had priority because its mortgage was of record at sale. |
Key Cases Cited
- Mesa v. BMW of N. Am., LLC, 904 So. 2d 450 (Fla. 3d DCA 2005) (summary-judgment statutory-interpretation review de novo)
- Lunohah Invs., LLC v. Gaskell, 158 So. 3d 619 (Fla. 5th DCA 2013) (tax deed issuance extinguishes preexisting liens)
- A to Z Props., Inc. v. Fairway Palms II Condo. Assoc., Inc., 137 So. 3d 453 (Fla. 4th DCA 2014) (preexisting covenants/liens do not survive a tax deed)
- Cricket Props., LLC v. Nassau Pointe at Heritage Isles Homeowners Ass’n, Inc., 124 So. 3d 302 (Fla. 2d DCA 2013) (liens for preexisting assessments do not survive issuance of a tax deed)