FIRST CALL 24/7, INC.,
v.
ALVARO J. RIOS,
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The appellate court reversed a trial court's dismissal of a case for lack of prosecution. The dismissal occurred while the case was stayed due to a bankruptcy filing and without proper notice to the parties, rendering the dismissal void.
Yes, the dismissal order was void because it was entered without notice to the parties and while an automatic bankruptcy stay was in effect, which prevented the trial court from exercising jurisdiction.
[1] A trial court order dismissing a case for lack of prosecution is void when entered without notice to the parties.
[2] A dismissal order entered while an automatic bankruptcy stay is in effect is void.
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Join FLexlaw to unlock all legal intelligence“First Call 24/7 (“First Call”) appeals from the trial court’s dismissal of its complaint against Alvaro Rios (“Rios”) for lack of prosecution, entered while the case was stayed pursuant to a suggestion of bankruptcy. We reverse.”
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Join FLexlaw to unlock all legal intelligenceFirst Call sued Rios for breach of contract and to foreclose a lien. Rios failed to respond, and a default was entered. The trial court later issued a…
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HENDON, J.
First Call 24/7 (“First Call”) appeals from the trial court’s dismissal of its complaint against Alvaro Rios (“Rios”)1 for lack of prosecution, entered while the case was stayed pursuant to a suggestion of bankruptcy. We reverse. Facts
First Call is a Florida corporation located in Broward County, whose business is mold, fire, and water remediation. In March 2017, Rios contracted with First Call for construction-related service at his residential property in Miami. First Call completed the work, but Rios failed to pay First Call the $24,311.65 charged to him. First Call recorded a lien against the property in June 2017, and in 2018 filed a complaint against Rios alleging breach of contract, quantum meruit, and to foreclose the lien. Rios was served but never responded to the complaint. First Call’s motion for default was granted with a Clerk’s Default on September 6, 2018. The motion for default final judgment was noticed for hearing on October3, 2018, and then re-noticed for October4, 2018. The docket shows that a five-minute motion calendar occurred on October3, 2018, but the record does not contain any order stemming from that hearing.
On August 19, 2019, the trial court issued a Notice of Lack of Prosecution and Order to Appear for Hearing (“FWOP Notice”) set for October 31, 2019, which stated that “there has been no record activity for the last ten (10) months and no stay has been issued or approved by the court.”2
On October 7, 2019, Rios filed a petition for bankruptcy in federal court, and a suggestion of bankruptcy was entered on the trial court docket. On October 10, 2019, First Call’s case against Rios was ordered stayed and placed on inactive status as a result of the pending bankruptcy. The order states that “the parties must return the case to active status, with notice to all parties, within 30 days of the termination of grounds for inactive status, and seeking an order of court returning it to active status.”
However, the Clerk did not docket the August 19, 2019 FWOP Notice on August 19, 2019; rather, it was docketed on October 31, 2019, the date the parties were to attend the FWOP hearing. Neither party appeared for the hearing, and there is no indication in the record that the parties were ever given notice of the August 2019 FWOP Notice prior to the October 31 hearing date. On November1, 2019, the trial court dismissed the case.3
On March 7, 2022, First Call, via new counsel,4 filed its motion to vacate the November 2019 dismissal based on the automatic bankruptcy stay that existed at the time. In a summary order, the trial court denied the motion to vacate and First Call appeals. Standard of Review –
The standard of review of a trial court’s denial of a motion to vacate a final order of dismissal for lack of prosecution is generally abuse of discretion. See Rinconcito Latino Cafeteria, Inc. v. Ocampos, 276 So. 3d 525, 527 (Fla. 3d DCA 2019). However, where a motion to vacate depends upon whether the underlying order is void, the determination is a legal question that is reviewed de novo. See Nationstar Mortgage, LLC v. Diaz, 227 So. 3d 726, 729 (Fla. 3d DCA 2017). Discussion
Although First Call did not cite to rule 1.540(b)(4)5 in its motion to vacate the November 2019 dismissal, the grounds for relief fall squarely under this rule. First Call correctly moved to vacate the dismissal order as void, as the trial court entered the dismissal order without notice to the parties as a result of the Clerk’s failure to timely docket the August 19, 2019 FWOP order or notice the parties. Rogers v. First Nat’l. Bank at Winter Park, 232 So. 2d 377, 378 (Fla. 1970) (“When viewed in its totality, the series of events that transpired below call for a liberal application of Rule 1.540(b), especially since it appears that the rules for notice were not complied with. While our procedural rules provide for an orderly and expeditious administration of justice, we must take care to administer them in a manner conducive to the ends of justice.”); Courtney v. Catalina, Ltd., 130 So. 3d 739, 740 (Fla. 3d DCA 2014) (reversing a trial court order that failed to grant a motion under rule 1.540(b)(4) to set aside an order of dismissal for lack of prosecution “because it is undisputed in the record that he did not receive either the notice of inactivity or the final order of dismissal.”); De La Osa v. Wells Fargo Bank, N.A., 208 So. 3d 259 (Fla. 3d DCA 2016) (affirming the trial court's order vacating a dismissal where the plaintiff neither received notice to appear for trial nor a copy of the dismissal order). Further, there was an automatic bankruptcy stay in place, and the record reflects record activity. See Coral Gables Imports, Inc. v. Suarez, 219 So. 3d 101, 102 (Fla. 3d DCA 2017) (affirming the vacating of a void dismissal order, pursuant to Florida Rule of Civil Procedure 1.540(b)(4), where the court entered the dismissal order without notice and the record reflected record activity).
Accordingly, we reverse the order denying First Call’s Motion to Vacate, and remand for further proceedings consistent with this opinion.
Reversed and remanded.
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Citator
Authorities Cited
- Inger Rogers v. First Nat'l Bank AT Winter Park, 232 So. 2d 377 (Fla. 1970)
- Yoanky DE LA OSA v. Wells Fargo Bank, N.A., 208 So. 3d 259 (Fla. 3d DCA 2016)
- Nationstar Mortg., LLC v. Diaz, 227 So. 3d 726 (Fla. 3d DCA 2017)
- Courtney v. Catalina, Ltd., 130 So. 3d 739 (Fla. 3d DCA 2014)
- Coral Gables Imports, Inc. v. Suarez, 219 So. 3d 101 (Fla. 3d DCA 2017)