U.S. Bank N.A. v. Vogel
137 So. 3d 491
| Fla. Dist. Ct. App. | 2014Background
- U.S. Bank obtained a final judgment of foreclosure for $118,063.26 in 2012. A foreclosure sale was rescheduled for April 16, 2013.
- U.S. Bank instructed its counsel to bid up to $51,000, but due to a newly hired clerk’s failure to follow firm procedures, the Post Judgment Foreclosure Supervisor was not notified and counsel did not bid.
- A third-party purchaser, Chris Greaves, bought the property at the sale for $35,200.
- U.S. Bank timely moved to set aside the sale, alleging mistake/irregularity; the purchaser’s counsel conceded mistake but argued the sale price adequacy still mattered.
- The trial court denied the motion; U.S. Bank appealed. The Fourth District reviewed whether the court grossly abused its discretion in refusing to vacate.
Issues
| Issue | Plaintiff's Argument (U.S. Bank) | Defendant's Argument (Purchaser) | Held |
|---|---|---|---|
| Whether a foreclosure sale may be vacated based on mistake even if bid adequacy is not shown | A mistake (attorney not present due to firm error) deprived the bank of opportunity to bid; equitable relief warranted | Sale price inadequacy must still be shown; bank’s motion focused on price so relief unwarranted without gross inadequacy | Court held mistake alone is a sufficient equitable ground to vacate; trial court grossly abused discretion in denying motion |
| Standard of review for motion to set aside judicial sale | N/A — argues trial court misapplied discretion | N/A — asserts discretion should favor finality absent gross inadequacy | Appellate standard: gross abuse of discretion for equitable relief; legal application reviewed de novo |
Key Cases Cited
- Arsali v. Chase Home Finance, LLC, 79 So.3d 845 (Fla. 4th DCA 2012) (district court decision affirming vacatur on equitable grounds)
- Arsali v. Chase Home Finance LLC, 121 So.3d 511 (Fla. 2013) (Florida Supreme Court: inadequate bid price not required; judicial sale may be vacated on equitable grounds)
- Long Beach Mortg. Corp. v. Bebble, 985 So.2d 611 (Fla. 4th DCA 2008) (trial court grossly abused discretion by refusing to set aside sale where lender was victim of attorney mistakes)
- Moran-Alleen Co. v. Brown, 123 So. 561 (Fla. 1929) (judicial sales may be vacated for gross inadequacy, surprise, accident, mistake, or irregularity)
- Kerrigan v. Mosher, 679 So.2d 874 (Fla. 1st DCA 1996) (owner deprived opportunity to bid due to attorney’s absence can justify vacatur)