PROVIDENT FUNDING ASSOCIATES, L. P. v. M D T R, AS TRUSTEE

257 So. 3d 1114
CourtDistrict Court of Appeal of Florida
DecidedOctober 12, 2018
Docket17-0337
StatusPublished
Cited by10 cases

This text of 257 So. 3d 1114 (PROVIDENT FUNDING ASSOCIATES, L. P. v. M D T R, AS TRUSTEE) 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
PROVIDENT FUNDING ASSOCIATES, L. P. v. M D T R, AS TRUSTEE, 257 So. 3d 1114 (Fla. Ct. App. 2018).

Opinion

NOT FINAL UNTIL TIME EXPIRES TO FILE REHEARING MOTION AND, IF FILED, DETERMINED

IN THE DISTRICT COURT OF APPEAL

OF FLORIDA

SECOND DISTRICT

PROVIDENT FUNDING ASSOCIATES, ) L.P., ) ) Appellant, ) ) v. ) Case No. 2D17-337 ) MDTR, as trustee under the 6925 Alta ) Vista Land Trust and BETTY JEAN ) GROVES, ) ) Appellees. ) )

Opinion filed October 12, 2018.

Appeal from the Circuit Court for Pasco County; Declan Mansfield, Judge.

Cynthia L. Comras, David Rosenberg, and Jarrett Cooper of Robertson, Anschutz & Schneid, P.L., Boca Raton, for Appellant.

Mark P. Stopa of Stopa Law Firm, Tampa (withdrew after briefing); Isaac Manzo of Manzo & Associates, P.A., Orlando (substituted as counsel of record), for Appellee MDTR, as trustee under the 6925 Alta Vista Land Trust.

No appearance for remaining Appellee. SALARIO, Judge.

This is a residential foreclosure case brought by Provident Funding

Associates, L.P., a mortgage servicer, against Betty Groves and MDTR, as trustee

under the 6925 Alta Vista Land Trust. Provident appeals from a final order granting

MDTR's motion for involuntary dismissal. The trial court incorrectly held that this case is

barred by res judicata. We reverse and remand for further proceedings.

I.

In September 2007, Ms. Groves borrowed $110,000 from Provident

Funding Group, Inc., which we refer to here as the lender. The debt was evidenced by

a note between Provident and Ms. Groves and secured by a mortgage on residential

real property in New Port Richey, Florida. At some point, Ms. Groves stopped making

regular payments of principal and interest on the loan, which led to two separate civil

actions filed by Provident to foreclose on Ms. Groves' mortgage.

The first case was filed on September 22, 2010 and named Provident as

plaintiff and Ms. Groves and any unknown parties with an interest in the property

secured by the mortgage as defendants. The complaint alleged that Ms. Groves

defaulted under the note by failing to make the "October 1, 2008 payment and all

payments due thereafter" and sought to foreclose the mortgage. Provident failed to

respond to requests for admission Ms. Groves served on it and, by virtue of that failure,

was deemed to have admitted that it was not the owner or holder of the note and that it

lacked standing to sue for foreclosure. Based on those technical admissions, the trial

court entered a final summary judgment in Ms. Groves' favor on May 9, 2012. Provident

did not appeal, and a motion for relief from judgment was denied.

-2- On April 1, 2015, Provident filed a second foreclosure case, which is the

case that gives rise to this appeal. The complaint names Ms. Groves and MDTR as

defendants and alleges that at some point MDTR became the owner of the property

secured by the mortgage. It asserts that the note is in default because "the payment

due May 1, 2010, and all subsequent payments" have not been made.

MDTR filed an answer and, later and with leave of court, an amended

answer to Provident's complaint. The amended answer asserted that MDTR was

without knowledge of and was therefore denying all of the allegations of Provident's

complaint, including its allegation that MDTR was the owner of the property that was the

subject of Provident's mortgage. MDTR also asserted several affirmative defenses,

including a defense that Provident's foreclosure action was barred by res judicata.

The trial court held a nonjury trial on January 9, 2017. At the beginning of

trial, Provident moved to drop Ms. Groves as a party. The court granted the motion,

and the trial proceeded with MDTR as the sole defendant. MDTR requested that the

trial court take judicial notice of the complaint and final judgment from the first

foreclosure case Provident filed, and without objection, the trial court did so.

The sole witness at the trial was Joseph Tami, a foreclosure operation

manager for Provident. Based on Mr. Tami's testimony, the trial court admitted into

evidence the original note, which contained an undated, blank endorsement from the

lender; the mortgage; a default notice dated December 19, 2014, and addressed to Ms.

Groves; and a loan disbursement and payment log. Mr. Tami's testimony also

established that the loan was in default as of May 1, 2010. There was no testimony or

documentary evidence admitted concerning what interest MDTR had in the property, if

any, or the circumstances under which it had acquired that interest.

-3- At the end of Provident's case-in-chief, MDTR moved for an involuntary

dismissal. It argued, among other things, that the action was barred by res judicata by

virtue of the final judgment in the first foreclosure case and the fact that the complaint in

the second case alleged an initial default date (May 1, 2010) before the first case was

even filed. The trial court reserved ruling and asked MDTR whether it intended to put

on any evidence. MDTR advised that it did not, and the parties continued arguing about

involuntary dismissal. The trial court agreed with MDTR and dismissed Provident's

claim as barred by res judicata. It expressly declined to address MDTR's other

arguments for involuntary dismissal. This is Provident's timely appeal.

II.

We review an order granting a motion for involuntary dismissal de novo.

Deutsche Bank Nat'l Tr. Co. v. Kummer, 195 So. 3d 1173, 1175 (Fla. 2d DCA 2016).

We hold that the doctrine of res judicata does not apply here, and that the trial court

thus improvidently dismissed the action, because MDTR failed to prove the required

element of identity of parties and because the supreme court's decision in Singleton v.

Greymar Associates, Inc., 882 So. 2d 1004 (Fla. 2004), precludes application of res

judicata on the facts that this case presents.1

1The timing and substance of the order of involuntary dismissal are unusual. An involuntary dismissal tests whether the plaintiff has made a prima facie case and is typically presented and resolved at the conclusion of the plaintiff's evidence. See Fla. R. Civ. P. 1.420(b) (describing timing and resolution of motion for involuntary dismissal); May v. PHH Mortg. Corp., 150 So. 3d 247, 248 (Fla. 2d DCA 2014) ("When confronted with a motion for involuntary dismissal, the trial court must determine whether or not the plaintiff has made a prima facie case."). Here, the trial court entered an order of involuntary dismissal after Provident and MDTR were both finished with the evidentiary portion of the trial (MDTR having declined to put on evidence), when it could have simply rendered a final judgment on the basis of an affirmative defense rather than a deficiency in Provident's prima facie case. See Kummer, 195 So. 3d at 1175 n.2 ("We would further note that the timing of the court's involuntary dismissal of Deutsche Bank's

-4- The doctrine of res judicata provides that a judgment on the merits in an

earlier suit bars a later suit on the same cause of action between the same parties or

others in privity with those parties. Fla. Dep't of Transp. v. Juliano, 801 So.

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