Regions Bank v. Deluca
97 So. 3d 879
| Fla. Dist. Ct. App. | 2012Background
- Fulchinos granted AmSouth a first and second mortgage on Olde Cypress; AmSouth later held a Bayfront Gardens mortgage in 2005.
- Exhibit A on the Bayfront Gardens loan includes a blank space for the Olde Cypress legal description, and only Bayfront Gardens is described in the index.
- Exhibit A states Olde Cypress as additional collateral and contains a release clause for Parcel 2 (Olde Cypress).
- Fulchino property (Olde Cypress) was sold to the Delucas on June 28, 2005; JPMorgan held a mortgage on Olde Cypress recorded July 22, 2005.
- Regions Bank (successor to AmSouth) foreclosed after Fulchino default; Delucas and JPMorgan defended as bona fide purchasers without notice.
- The title search failed to reveal Regions’ third mortgage on Olde Cypress; Regions argued constructive notice via the mortgage description.
- The circuit court granted summary judgment for Delucas/JPMorgan; on appeal, the court reversed and remanded.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Constructive notice from the Regions mortgage encumbering Olde Cypress | Delucas/JPMorgan: no constructive notice | Regions: yes, Exhibit A/description provides notice | Yes, constructive notice found |
| Exhibit A's incorporation into the mortgage was proper | Exhibit A not properly identified | Exhibit A integrated within the instrument | Yes, properly identified and incorporated |
| Whether the 'Property' language excludes Olde Cypress | Property limited to Bayfront Gardens | Exhibit A shows Olde Cypress as collateral | No; includes Olde Cypress as collateral |
Key Cases Cited
- Neves v. Flannery, 149 So.2d 618 (Fla. 1933) (description sufficiency despite minor misdescriptions; constructive notice allowed)
- Fed. Land Bank of Columbia v. Dekle, 148 So.2d 756 (Fla. 1938) (descriptions sufficient if material description can be determined)
- Hull v. Md. Cas. Co., 79 So.2d 517 (Fla. 1954) (recording provides notice of contents; exhibits within instrument)
- Bank of S. Palm Beaches v. Stockton, Whatley, Davin & Co., 473 So.2d 1358 (Fla. 4th DCA 1985) (constructive notice principles in recording)
- Dunn v. Stack, 418 So.2d 345 (Fla. 1st DCA 1982) (imputed notice through grantor/grantee index; recording notice)