U.S. Bank National Ass'n v. Knight
90 So. 3d 824
| Fla. Dist. Ct. App. | 2012Background
- U.S. Bank sought to foreclose a 2005 note and mortgage and reestablish the note; RAP Knifore, LLC holds title to the property.
- Bank filed foreclosure in 2008 and initially did not attach the note to its complaint; amended complaints eventually attached the note.
- The third amended complaint claimed Bank was the legal and equitable owner/holder with standing to enforce the loan documents.
- Exhibits attached to the third amended complaint included two assignments showing post-filing transfers of the mortgage (from MERS to AHMS; AHMS to U.S. Bank)
- The trial court dismissed the complaint with prejudice, concluding the attached assignments defeated standing; on appeal, Bank challenged the standing theory and the court’s reliance on the exhibits.
- This appeal concerns whether a holder of a blank-indorsed note has standing to foreclose, even if the mortgage transfer isn’t timely shown before filing.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether holder standing exists without pre-suit mortgage assignment | U.S. Bank had the note holder status since filing suit | Assignments negate Bank’s standing | Yes; standing found despite later assignments |
| Whether a note indorsed in blank allows foreclosure without mortgage transfer | Mortgage follows the note; Bank possessed original note | Assignments showed lack of standing | Yes; holder of blank-indorsed note has standing to foreclose |
| Whether trial court erred by relying on Exhibits C to deny standing | Exhibits reflected equitable assignment; not fatal | Exhibits negated standing | Reversed for proceedings consistent with opinion |
Key Cases Cited
- Riggs v. Aurora Loan Services, LLC, 36 So.3d 932 (Fla. 4th DCA 2010) (blank indorsement permits enforceability of the note by the holder)
- WM Specialty Mortg., LLC v. Salomon, 874 So.2d 680 (Fla. 4th DCA 2004) (mortgage follows debt when note is transferred)
- Johns v. Gillian, 184 So. 140 (1938) (mortgage ownership follows debt absent formal mortgage transfer)
- Agee v. Brown, 73 So.3d 882 (Fla. 4th DCA 2011) (standard for reviewing standing on motion to dismiss)
- Anson v. Paxson Commc’ns Corp., 736 So.2d 1209 (Fla. 4th DCA 1999) (pleadings treated as true on motion to dismiss)
- Provence v. Palm Beach Taverns, Inc., 676 So.2d 1022 (Fla. 4th DCA 1996) (pleadings’ allegations controlling on dismissals)
- Provence v. Palm Beach Taverns, Inc., 676 So.2d 1022 (Fla. 4th DCA 1996) (pleadings’ allegations controlling on dismissals)