LAKELAND — A state appeals panel has overturned a foreclosure judgment based on an abuse of judicial discretion.
After a 2018 bench trial, Pinellas County Circuit Court Judge Marion Fleming entered an amended final judgment in favor of Nationstar Mortgage, LLC. In an opinion issued Dec. 4, the Florida Second District Court of Appeal reversed that ruling, giving Tony and Debra Robinson another chance to prevail. Judge Daniel Sleet wrote the opinion, Judges John Badalamenti and Susan Rothstein-Youakim concurred.
According to Sleet, when the Robinsons executed their mortgage in 2006 it was negotiated among several parties before being transferred, by special endorsement, to Deutsche Bank Trust Company. When Aurora Loan Services filed for foreclosure on Feb. 28, 2012, the Robinsons said Aurora lacked standing to bring the action. Nationstar was substituted as a plaintiff in place of Aurora soon after.
The initial final judgement was entered June 25, 2015. The Robinsons moved for a rehearing, arguing Nationstar never established Aurora’s standing. The court denied the Robinsons’ motion but allowed Nationstar to reopen the evidence to establish its entitlement to legal fees. But Nationstar never set the hearing, and no corrected final judgment was submitted. The foreclosure sale happened Dec. 16, 2015. The Robinsons moved to vacate the sale. The court granted that request, agreeing a sale was improper absent final judgment.
Nationstar then moved to reopen evidence to present additional proof of standing. The court allowed that move, noting the company waived its right to seek compensation for legal fees. Fleming conducted a bench trial June 20, 2018, and then entered the amended final judgment.
In their appeal, the Robinsons said Nationstar’s evidence at the initial trial was insufficient and that Fleming abused discretion by allowing Nationstar to correct the fundamental deficiency three years later.
“Nationstar failed to prove at the first trial that Aurora had been given legal authority to act on behalf of Deutsche Bank to bring this foreclosure action,” Sleet wrote. Although the company provided a power of attorney notice by which Deutsche appointed Nationstar Aurora’s successor servicer, it was dated Aug. 6, 2012, more than five months after the initial complaint.
Sleet said the appeals panel was confused why Fleming would “reopen the evidence on an issue it believed the plaintiff had already proven,” but more importantly said it was clear Nationstar never proved standing. The panel said Fleming was wrong to determine reopening evidence wouldn’t prejudice the Robinsons, and further that doing so didn’t serve the best interests of justice.
The panel said “Nationstar's failure to present sufficient evidence of standing at the first trial constitutes a failure of proof” leading it to reverse Fleming’s order and remand the case with instructions to enter an order of involuntary dismissal, effectively ending the litigation.
Weidner Law, of St. Petersburg, represented the Robinsons.
Nationstar Mortgage was represented by Akerman LLP, of Tallahassee and Fort Lauderdale.