Background

• In June 2010 Florida foreclosure, U.S. Bank was the named plaintiff; Wells Fargo (the mortgage servicer) litigated in U.S. Bank’s place but U.S. Bank did not appear at trial.
• The Florida state court granted the Streichers’ motion for involuntary dismissal after Wells Fargo’s evidence, finding Wells Fargo lacked standing to prosecute on behalf of U.S. Bank.
• The Streichers then sued U.S. Bank in state court (removed to federal court), seeking a declaratory judgment that the state-court dismissal precludes U.S. Bank from later enforcing the promissory note (i.e., res judicata effect).
• Both sides moved for summary judgment in federal court; the district court held the state-court dismissal did not have preclusive (res judicata) effect and granted summary judgment for U.S. Bank.
• On appeal, the Eleventh Circuit reviewed whether a dismissal for lack of standing constitutes an adjudication on the merits under Florida law and thus would trigger res judicata.

Issues

Key Cases Cited

• Topps v. State, 865 So. 2d 1253 (Fla. 2004) (res judicata requires prior adjudication on the merits)
• Brown v. M & T Bank, 183 So. 3d 1270 (Fla. Dist. Ct. App. 2016) (dismissal for lack of standing does not operate as adjudication on the merits)
• State St. Bank & Trust Co. v. Badra, 765 So. 2d 251 (Fla. Dist. Ct. App. 2000) (dismissal on non-merits grounds does not trigger res judicata)
• J. Schnarr & Co. v. Virginia-Carolina Chem. Corp., 159 So. 39 (Fla. 1934) (definition of judgment "upon the merits" for preclusion)
• Rogers & Ford Const. Corp. v. Carlandia Corp., 626 So. 2d 1350 (Fla. 1993) (standing to sue concerns court's jurisdiction)
• Ervin v. Taylor, 66 So. 2d 816 (Fla. 1953) (lack of actual adversaries renders court without jurisdiction)
• Vasquez v. YII Shipping Co., 692 F.3d 1192 (11th Cir. 2012) (forum non conveniens dismissal not a judgment on the merits)
• Exxon Mobil Corp. v. Saudi Basic Indus. Corp., 544 U.S. 280 (2005) (Full Faith and Credit Act requires applying state law preclusion rules)