Romero v. Suntrust Mortgage, Inc.
15 F. Supp. 3d 1279
S.D. Fla.2014Background
- Romero and Rodriguez sue SunTrust Mortgage and MERS over a 2007 mortgage on property in Miami, seeking declaratory relief on statute of limitations and quiet title.
- SunTrust accelerated the loan in Oct 2008; foreclosure action followed in 2008 and was dismissed in 2011.
- A prior state-court action (removed to federal court) to quiet title was dismissed in Sept 2013, with the court holding the lien remains until Oct 2042.
- Plaintiffs filed the instant action in Dec 2013 arguing the five-year statute of limitations had run for enforcement of the note or foreclosure.
- Defendants move to dismiss (res judicata as to Count III; failure to state a claim as to Counts I and II), with the case ripe for disposition.
- The court grants the motion, finding res judicata bars Count III and Counts I and II fail to state a claim.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Count III is barred by res judicata | Romero/ Rodriguez claim quiet title was proper. | SunTrust/Sun Trust argue prior final judgment on merits and same cause of action. | Count III barred by res judicata. |
| Whether Counts I and II state a claim given acceleration and later actions | Statute of limitations and acceleration prevent enforcement claims. | Acceleration followed by dismissal does not bar later actions; lien remains enforceable. | Counts I and II fail to state a claim; note and mortgage remain enforceable. |
Key Cases Cited
- In re Piper Aircraft Corp., 244 F.3d 1289 (11th Cir. 2001) (elements of res judicata apply to prior final judgment and same parties)
- Singleton v. Greymar Associates, 882 So.2d 1004 (Fla. 2004) (res judicata does not bar successive foreclosures when based on subsequent defaults)
- Olympia Mortgage Corp., 774 So.2d 863 (Fla. Dist. Ct. App. 2000) (voluntary dismissal of foreclosure means no acceleration at that time)
- Kaan v. Wells Fargo Bank, N.A., 981 F. Supp. 2d 1271 (S.D. Fla. 2013) (post-acceleration actions for recent defaults remain viable)
- Cent. Home Tr. Co. of Elizabeth v. Lippincott, 392 So.2d 931 (Fla. Dist. Ct. App. 1980) (acceleration rights and statute of limitations considerations)