Vantium Capital, Inc. v. Hobson
137 So. 3d 497
| Fla. Dist. Ct. App. | 2014Background
- Vantium Capital, Inc. seeks deficiency judgments after mortgage foreclosures in three consolidated appeals.
- Final judgments were entered against Hobson, Cordiero, and Bengelsdorf in respective amounts and their properties were sold at foreclosure for far less than debt.
- Vantium moved for deficiency judgments and a single hearing was held; debtors did not appear.
- Vantium provided foreclosure sale prices and appraisals for Cordiero and Bengelsdorf, showing fair market values below debt in some instances.
- Trial court denied deficiency judgments, ruling Vantium proved only the bid prices and refusing appraiser affidavits as hearsay.
- Appellate court reverses, holding the trial court misapplied burden-shifting and erred in excluding appraiser affidavits, remanding for entry of deficiency judgments.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the court properly applied burden-shifting for deficiency judgments. | Vantium argues foreclosure sale price shifts burden to debtors for FMV. | Debtors argue no shifting occurred or evidence insufficient to overcome bid price. | Deficiency judgments should be awarded; burden shifted to debtors to rebut FMV. |
| Whether the trial court erred by excluding appraiser affidavits. | affidavits should be considered as FMV evidence. | No opposing objection; hearsay rejection improper. | Appraiser affidavits should have been admitted and considered. |
| Whether the foreclosure sale price constitutes the fair market value presumption shifts burden appropriately. | Foreclosure price is FMV, establishing basis for deficiency. | FMV may differ from sale price; burden to prove difference lies with debtors. | Presumption applies; debtors failed to rebut, entitling Vantium to deficiency. |
Key Cases Cited
- Ahmad v. Cobb Comer, Inc., 762 So.2d 944 (Fla. 4th DCA 2000) (deficiency when value less than debt; equity governs)
- S/D Enters., Inc. v. Chase Manhattan Bank, 374 So.2d 1121 (Fla. 3d DCA 1979) (deficiency generally favored when equity supports)
- Morgan v. Kelly, 642 So.2d 1117 (Fla. 3d DCA 1994) (abuse of discretion without legal justification)
- Chidnese v. McCollem, 695 So.2d 936 (Fla. 4th DCA 1997) (burden on secured party to prove FMV less than debt)
- Thunderbird, Ltd. v. Great Am. Ins. Co., 566 So.2d 1296 (Fla. 1st DCA 1990) (presumption that foreclosure price equals FMV)
- Liberty Business Credit Corp. v. Schaffer/Dunadry, 589 So.2d 451 (Fla. 2d DCA 1991) (burden shifts to debtor to rebut FMV presumption)
- Fara Mfg. Co., Inc. v. First Fed. Sav. & Loan Ass’n of Miami, 366 So.2d 164 (Fla. 3d DCA 1979) (court relies on competent evidence where provided)
- Addison Mortg. Co., Inc. v. Weit, 613 So.2d 104 (Fla. 3d DCA 1993) (evidence presented without obligation to rebut is binding)
- In re Eriksson, 36 So.3d 580 (Fla. 1st DCA 2010) (failure to object to hearsay waives objection)
- Nonvest Bank Owatonna, N.A. v. Millard, 522 So.2d 546 (Fla. 4th DCA 1988) (abuse of discretion review standard)