Jallali v. Knightsbridge Village Homeowners Ass'n

211 So. 3d 216, 2017 Fla. App. LEXIS 82
CourtDistrict Court of Appeal of Florida
DecidedJanuary 4, 2017
DocketNo. 4D15-2036
StatusPublished
Cited by4 cases

This text of 211 So. 3d 216 (Jallali v. Knightsbridge Village Homeowners Ass'n) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jallali v. Knightsbridge Village Homeowners Ass'n, 211 So. 3d 216, 2017 Fla. App. LEXIS 82 (Fla. Ct. App. 2017).

Opinion

ON MOTION FOR REHEARING

Per Curiam.

We deny appellee’s motion for rehearing and rehearing en banc, but withdraw our prior opinion and substitute the following opinion in its place.

Fallon Rahima Jallali appeals a non-final order denying her motion to vacate the final judgment of foreclosure obtained by her property’s homeowners’ association, Knightsbridge Village Homeowners Association (“the Association”). Jallali asserted three reasons for reversal. We affirm as to all three, but write to distinguish U.S. Bank National Ass’n v. Quadomain Condominum Ass’n, 103 So.3d 977 (Fla. 4th DCA 2012).

We hold that the filing of a notice of lis pendens by a first mortgagee does not bar the foreclosure of an association’s subsequent lien for unpaid assessments against the owner, although that action is inferior to the foreclosure of the first mortgage, where the association’s subsequent lien was imposed under the association’s declaration of covenants recorded before the first mortgagee recorded its notice of lis pendens.

In 2007, the holder of the first mortgage on Jallali’s property (“the Lender”) filed a foreclosure action against Jallali and recorded it@ notice of lis pendens against the property. The Lender named the Association as a defendant.1 The Association’s Declaration of Covenants and Restrictions had been recorded in the public records prior to both the first mortgage and the notice of lis pendens.

In 2011, while the Lender’s action was still pending, the Association recorded a claim of lien for delinquent maintenance fees against the same property. In 2012, the Association sued Jallali to foreclose that lien and obtained á default final judgment, which this Court affirmed. See Jallali v. Knightsbridge Vill. Homeowners’ Ass’n, 185 So.3d 1251 (Fla. 4th DCA 2014). Subsequently, the Lender’s successor obtained a final judgment of foreclosure.2

After the mortgage foreclosure concluded, Jallali filed a motion under Florida Rule of Civil Procedure 1.540(b)(4) to vacate the Association’s 2012 final judgment .of foreclosure. Jallali relied on Quadomain, 103 So.3d at 978-80, and section 48.23, Florida Statutes (2012). The trial court denied the motion and this appeal followed.

The question presented is whether the filing of the notice of lis pendens by [218]*218the first mortgage holder constitutes a bar to the Association’s foreclosure action based upon a claim of lien for unpaid assessments filed after the notice of lis pendens. Because the Declaration of Covenants, which included provisions with respect to the Association’s right to lien and foreclose on the property, was a recorded “interest” at the time of the filing of lis pendens, we conclude that, even though the lien was inferior to the mortgage, section 48.23, Florida Statutes, constitutes no bar to the enforcement of the lien between the Association and Jallali.

A lis pendens serves two main purposes: (1) to give notice to and thereby protect any future purchasers or encumbrancers of the property; and (2) to protect the plaintiff from intervening liens. See Fischer v. Fischer, 873 So.2d 534, 536 (Fla. 4th DCA 2004).

One of several purposes underlying the doctrine of lis pendens is that, when a suit is filed that could affect title in property, some notice should be given to future purchasers or encumbrancers of that property. DePass v. Chitty, 90 Fla. 77, 105 So. 148 (1925). This serves the purposes of protecting those purchasers or encumbrancers from becoming embroiled in the dispute, and of protecting the plaintiff from intervening liens that could impair any property rights claimed and also from possible extinguishment of the plaintiffs unrecorded equitable lien. In sum, unlike a typical injunction, a lis pendens exists as much to warn third parties as to protect the plaintiff; and the procedural requirements associated with lis pendens should advance both of these important purposes.

Chiusolo v. Kennedy, 614 So.2d 491, 492 (Fla. 1993) (footnote omitted).

Jallali relies on Quadomain as standing for the proposition that the association’s foreclosure against her is barred because the association did not comply with section 48.23, Florida Statutes. In Quadomain, the bank holding a first mortgage on a condominium unit filed a foreclosure action, recorded a notice of lis pendens, and ultimately obtained a final judgment. 103 So.3d at 978. Because ownership of the unit had changed before the final judgment, the bank obtained leave to supplement its complaint to foreclose on the new owners. Id. It also filed a supplemental notice of lis pendens. Id. Thereafter, the association that managed the condominium recorded a claim of lien for unpaid fees against the bank, as the bank had obtained a certificate of title during the initial foreclosure. Id. The association filed a foreclosure action, obtained a default judgment against the bank, and the property was sold. Id. The bank moved to vacate, arguing the association’s lien foreclosure was barred because it was filed after the bank filed its notice of lis pendens. Id. The trial court denied the motion and the bank appealed. Id.

The issue on appeal in Quadomain was whether the bank’s supplemental lis pen-dens divested the trial court of jurisdiction to adjudicate the association’s lien. Id. This Court quoted from section 48.23, Florida Statutes. Id. at 979. That statute, last amended effective July 1, 2009,3 provides in part as follows:

(a) An action in any of the state or federal courts in this state operates as a lis pendens on any real or personal property involved therein or to be affected thereby only if a notice of lis pendens is recorded in the official records of the [219]*219county where the property is located and such notice has not expired pursuant to subsection (2) or been withdrawn or discharged.
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(d) Except for the interest of persons in possession or easements of use, the recording of such notice of lis pen-dens, provided that during the pen-dency of the proceeding it has not expired pursuant to subsection (2) or been withdrawn or discharged, constitutes a bar to the enforcement against the property described in the notice of all interests and liens, including, but not limited to, federal tax liens and levies, unrecorded at the time of recording the notice unless the holder of any such unrecorded interest or lien intervenes in such proceedings within 30 days after the recording of the notice. If the holder of any such unrecorded interest or lien does not intervene in the proceedings and if such proceedings are prosecuted to a judicial sale of the property described in the notice, the property shall be forever discharged from all such unrecorded interests and liens. If the notice of lis pendens expires or is withdrawn or discharged, the expiration, withdrawal, or discharge of the notice does not affect the validity of any unrecorded interest or lien.

§ 48.23(1), Fla. Stat. (emphasis added).

Based on that statute and similar cases, this Court concluded in Quadomain that the jurisdiction of the court conducting the mortgage foreclosure proceeding was exclusive:

[T]he only way to enforce a property interest that is unrecorded at the time the

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Bluebook (online)
211 So. 3d 216, 2017 Fla. App. LEXIS 82, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jallali-v-knightsbridge-village-homeowners-assn-fladistctapp-2017.