Rincon v. Bank of America, N.A.
2016 Fla. App. LEXIS 16673
Fla. Dist. Ct. App.2016Background
- U.S. Bank filed a mortgage foreclosure complaint (2010) on a note executed by Tulia Rincon in 2006; the note attached to the complaint was endorsed in blank.
- The complaint also attached an assignment of the mortgage from MERS (as nominee for Countrywide Home Loans, Inc.) to U.S. Bank dated December 14, 2009.
- Rincon did not answer or assert defenses before entry of final judgment (final judgment entered March 14, 2013 in favor of U.S. Bank).
- The caption of the final judgment incorrectly named Bank of America, N.A. (as successor by merger) instead of U.S. Bank; sale of the property occurred in late 2015 after post-judgment delays.
- Rincon moved under Fla. R. Civ. P. 1.540(b)(4) to vacate the final judgment, arguing it was void for lack of standing because (1) the mortgage assignment was forged and (2) Countrywide could not assign the mortgage due to a merger with Bank of America.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether lack of standing can be raised in a Rule 1.540(b)(4) motion as a voidness claim | U.S. Bank: judgment valid; standing shown by possession of endorsed-in-blank note | Rincon: U.S. Bank lacked standing; thus judgment void | Court: Lack of standing is an affirmative defense waived if not raised before judgment; cannot be asserted first in Rule 1.540(b)(4) to void judgment |
| Whether possession of an endorsed-in-blank note gives standing to foreclose | U.S. Bank: note endorsed in blank and attached to complaint; U.S. Bank was holder and owner | Rincon: assignment invalid/forged; merger facts negate transfer | Court: Holder of note endorsed in blank has standing to foreclose regardless of recorded assignment |
| Whether alleged forgery or defective assignment (merger) deprived U.S. Bank of authority to foreclose | U.S. Bank: possession of bearer/endorsed-in-blank note establishes standing without relying solely on assignment | Rincon: assignment forged; Countrywide merged into Bank of America so could not assign | Court: Documents provided do not establish forgery or that Countrywide Home Loans, Inc. merged into BofA; Rincon’s evidence insufficient; standing established by note possession |
| Whether incorrect caption naming Bank of America in final judgment voids the judgment | U.S. Bank: caption error was clerical and judgment is for U.S. Bank | Rincon: caption change indicates improper party/ownership | Court: Caption error is a scrivener’s error and does not invalidate the judgment |
Key Cases Cited
- Phadael v. Deutsche Bank Tr. Co. Americas, 83 So.3d 893 (Fla. 4th DCA 2012) (standing is an affirmative defense that must be raised before judgment)
- McLean v. JP Morgan Chase Bank Nat’l Ass’n, 79 So.3d 170 (Fla. 4th DCA 2012) (holder/endorsement rules for establishing standing)
- Harvey v. Deutsche Bank Nat’l Tr. Co., 69 So.3d 300 (Fla. 4th DCA 2011) (note-holder status can establish foreclosure standing)
- WM Specialty Mortg., LLC v. Salomon, 874 So.2d 680 (Fla. 4th DCA 2004) (mortgage follows the debt; equitable transfer of note passes mortgage)
- Taylor v. Bayview Loan Servicing, LLC, 74 So.3d 1115 (Fla. 2d DCA 2011) (standing via note/endorsement)
- Wells Fargo Bank, N.A. v. Morcom, 125 So.3d 320 (Fla. 5th DCA 2013) (endorsed-in-blank note confers standing)
- Buchanan v. City of Winter Park, 226 So.2d 860 (Fla. 4th DCA 1969) (clerical or caption errors do not invalidate orders)
- Rigby v. Wells Fargo Bank, N.A., 84 So.3d 1195 (Fla. 4th DCA 2012) (statutory standing requirement must exist at inception of foreclosure)