Emmett Abdoney seeks review of (1) the final summary judgment in favor of Janet-
Emmett Abdoney, a practicing attorney, was given a second mortgage by Jason and Betty Peterson for $12,000 in attorney’s fees and costs that they owed Abdoney. For personal reasons, Abdoney promised the Petersons that he would not foreclose the second mortgage. The Petersons failed to make payments on their first mortgage with Amerivest Corporation, and Amerivest instituted a foreclosure action against the Petersons and three junior lienors, one of which was Abdoney.
Abdoney entered into an agreement with Amerivest to buy out the first mortgage. Amerivest voluntarily dismissed Abdoney from the foreclosure suit, and the parties filed a joint stipulation for substitution of plaintiff. The court ordered the substitution, and Abdoney amended the foreclosure complaint but did not include himself in his capacity as a junior lienor.
The trial court entered a final judgment of foreclosure awarding Abdoney $11,269.27, and ordered a judicial sale. The final judgment did not specify a deadline for redemption. York was the successful bidder with a bid of $15,100, and the clerk filed a certificate of sale.
Shortly thereafter, Abdoney sent York a letter demanding satisfaction of his junior lien. In response, York filed a motion to declare junior lienor with notice barred in Abdoney’s foreclosure action, which the court denied as premature. Abdoney subsequently made an offer and tendered a payment to York to either buy York out for her interest in the property or for her to buy Abdoney out. Additionally, Abdo-ney tendered payment as an offer of settlement in a,n attempt to preclude York from instituting foreclosure proceedings. York did not respond to Abdoney’s offers.
Abdoney then filed a foreclosure action under a new case number. Abdoney’s complaint sought (1) foreclosure against the Petersons, (2) foreclosure against York, (3) redemption, and (4) lien foreclosure. York filed an answer and counterclaim for (1) declaratory judgment, (2) quiet title, and (3) slander of title.
York subsequently filed a renewed motion to declare junior lienor with notice barred in the first foreclosure action. Ab-doney moved to strike the motion to declare junior lienor barred for lack of standing, but the court denied the motion. The two cases were consolidated.
After a hearing, the court entered an order granting York’s motion to declare junior lien barred. The court determined that Abdoney’s junior lien was extinguished by the filing of the certificate of sale in the first foreclosure action. Both parties thereafter filed motions for summary judgment, and Abdoney filed a motion for rehearing of the court’s order granting York’s motion to declare junior lienor barred. York voluntarily dismissed her slander counterclaim. The court granted York’s motion for final summary judgment and denied Abdoney’s. The court also awarded York attorney’s fees and costs pursuant to sections 57.041 and 57.105(1), Florida Statutes (2003), and an attorney’s fee provision in the foreclosed mortgage.
On appeal, Abdoney argues that the trial court erred in granting York’s motion for summary judgment and denying his motion for summary judgment because his junior lien was unaffected by the foreclosure sale. We agree and reverse and re
Under the common law, the foreclosure of a senior mortgage extinguishes the liens of any junior mortgagees listed in the final judgment. Pinellas County v. Clearwater Fed. Sav. & Loan Ass’n,
When a junior mortgagee is omitted as a party to the foreclosure of a senior mortgage, the lien of the junior mortgagee is unaffected by the judgment. Quinn Plumbing Co. v. New Miami Shores Corp.,
The only remedies of the purchaser against the omitted junior mortgagee are moving to compel redemption or re-foreclosure in a suit de novo. See Kurz v. Pappas,
The remedies of the omitted junior mortgagee against the purchaser are redemption and foreclosure. Nelson, supra,
This case presents an unusual set of facts in that Abdoney, in his capacity as the senior mortgagee, omitted himself as a junior mortgagee from the original foreclosure action. Abdoney has admitted that this omission was intentional, but we cannot find any authority that would justify departing from the general rule that the lien of a junior mortgagee is not affected by a judgment of foreclosure to which he was not a party. Although Abdoney had notice of, and participated in, the judicial sale, he did so in his capacity as senior mortgagee and not as a junior mortgagee. Moreover, the evidence is undisputed that York was aware that Abdoney’s junior mortgage was not listed in the final judgment of foreclosure.
As the purchaser of the property at the foreclosure sale, York is now equitably subrogated to the rights of the senior mortgagee, and Abdoney has retained his position as a junior mortgagee. Thus, the trial court erred in denying Abdoney’s motion for summary judgment and granting York’s motion for summary judgment based on its determination that Abdoney’s junior lien was extinguished with the filing of the certificate of sale. Accordingly, we reverse and remand the final summary judgment for further proceedings in Abdo-ney’s foreclosure action. We also reverse the final order that awarded York attorney’s fees and costs.
Reversed and remanded.
Notes
. However, if the senior mortgagee omitted the junior mortgagee as a result of fraud or mala fides "so as to deprive [the junior mortgagee] of the opportunity (not the absolute right) of bidding the property up to an amount sufficient to cover its second mortgage, or to deprive it of the opportunity to contest the amounts devoted to 'costs and expenses’ in order to conserve proceeds available to pay off the second mortgage,” equity could support some other remedy. Quinn Plumbing Co. v. New Miami Shores Corp.,
