J. H. MEYER, APPELLANT,
v.
FLORIDA HOME FINDERS, A CORPORATION; FIRST TRUST & SAVINGS BANK, A CORPORATION, FORMERLY NAMED AND KNOWN AS MIAMI SAVINGS BANK, AS TRUSTEE FOR H. A. BRADDOCK AND BERTHA E. L. BRADDOCK; H. A. BRADDOCK AND BERTHA E. L. BRADDOCK IN THEIR OWN BEHALF; AND FIRST NATIONAL BANK OF MIAMI, A CORPORATION, APPELLEES

Fla. | 1925-07-09
West, C. J., and Whitfield, Ellis, Strum and Brown, J. J., concur.
90 Fla. 128 Florida Supreme Court (1925) Caution
Also reported at: 105 So. 267
Cited by 26 cases

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Synopsis

This case concerns a purchaser at a foreclosure sale who sought subrogation after the foreclosure decree was reversed. The court had to determine if a prior pending action for subrogation by another party barred the current purchaser's claim.


Holding

No, the prior pending action does not bar Meyer's suit for subrogation. The two actions do not involve the same cause of action, are not of the same character, do not seek the same relief, and a judgment in the former would not support a plea of res judicata in the latter.


Key Quotes

“Legal subrogation is the substitution of one person in the place of another with reference to a lawful claim or right.”

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Facts & Procedural History

J. H. Meyer purchased land at a foreclosure sale. Subsequently, this court reversed the foreclosure decree, rendering the sale void. Meyer then filed …

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Opinion of the Court
Terrell, J.

Terrell, J.

Miami Savings Bank as trustee and others brought suit against Florida Home Finders, a corporation, to foreclose a mortgage against certain lands in Dade County. J. H. Mayer in good faith and for cash purchased the lands at the foreclosure sale. After purchase and payment for and receipt of his deed for said lands, this Court in 78 Fla. 85, 82 South. 621, reversed the decree in the foreclosure suit and held all the proceedings therein from the certificate of disqualification of the chancellor null and void.

J. IT. Mayer, the purchaser at the foreclosure sale, then brought this suit in chancery for the purpose of having himself subrogated to all the rights of the original mortgagee, Florida Home Finders, a corporation. To the bill of complaint Florida Home Finders filed two pleas and subsequently elected to stand on the second plea. Following-defendant’s election to stand on its second plea a very unusual series of orders was made by the chancellor affecting said plea.

Order one sustained the second plea and dismissed the bill. Order two overruled the second plea and allowed defendant until December 1, 1923, to plead further. Order three struck order two from the files. Order four set up that the court had not understood the cause of action, the contents of the bill, and the legal effect of the plea, recited all former orders, overruled the plea, and allowed ten days in which to plead over. Order five set order four down for rehearing on April 3, 1923, and order six extended the time to plead as authorized by order four. Order seven extended further the time to plead and order eight set aside and nullified all other orders made after June 28, 1922 (same being all those above enumerated) and provided that said order of June 28 stand as of the original date of signing as the final and correct order upon the second plea.

The effect of order eight was to sustain the second plea, which set up as a bar to the bill for subrogation another or former action pending. Appeal is taken from this order and the sufficiency of the plea brought here for our consideration.

Legal subrogation is the substitution of one person in the place of another with reference to a lawful claim or right. It arises by operation of law where one having a liability, right, or fiduciary relation pays a debt due by another under such circumstances that he is in equity entitled to the security or obligation held by the creditor whom he has paid. . Conventional subrogation depends on contract and under such contract the one paying the debt of another succeeds to all the rights of the creditor so paid. Boley v. Daniel, 72 Fla. 121, 72 South. Rep. 644.

This court has repeatedly held that when for any reason foreclosure proceedings are imperfect, irregular, or void the purchaser at the sale became subrogated to all the rights of the mortgagee in and to the mortgage and indebtedness that it secured and becomes thereby virtually an equitable assignee of such mortgage and of the debt it secured, with all the rights of the original mortgagee, and becomes entitled to an action de novo for the foreclosure of such mortgage against all parties holding junior encumbrances or the legal title, who had been omitted as parties to to such original foreclosure proceedings under which he bought. Key West Wharf and Coal Company v. Porter, 63 Fla. 448, 58 South. 599, Ann. Cas. 1914 A 173; Crystal River Lumber Company v. Knight Turpentine Company, 69 Fla. 288, 67 South. 974, Ann. Cas. 1917 B 574.

In order to sustain the plea presented here for our determination it must show that the “former pending action” and the bill for subrogation involve the same cause of action; that is, both actions must be of the same character, for the same cause and relief must be in all respects identical. 1 R. C. L. 13. 1 Corpus Juris 66, supported by many authorities, prescribes the following test for determining the sufficiency of such pleas:

(1) “Clearly, in order to hold the subsequent suit to be unnecessary, it is an essential prerequisite that the judgment in the former or prior action should be conclusive between the parties and operate as a bar to the second.” In other words, if a final judgment in the former suit 'would support a plea of res ad judicata in the subsequent suit, the suits are identical for this purpose; otherwise they are not. (2) Many cases apply the following test: Was full and adequate relief obtainable in the prior action? If so the second action was improperly brought and is abatable; if not, the objection will be overruled. This, as we, shall see, is a generally recognized rule. (3) A test having the support of some of the eases is this: Will the same evidence support both actions? (4) A fourth test supported by English and Canadian authorities is: Could the bill in the second suit have been produced by a fair amendment of the first ?

It is shown here that the “former action pending” was one brought by Dade County Security Company to be subrogated to the rights of the First Trust and Savings Bank, formerly the Miami Savings Bank, to foreclose in its (Dade County Security Company) favor the original mortgage from Florida Home Finders to Miami Savings Bank. The Dade County Security Company joined as defendants in its subrogation suit all the defendants in the suit at bar in- eluding Meyer and some fifty or sixty others to whom Meyer had deeded lots: It is also shown that Dade County Security Company had loaned Meyer the money with which he bought at the foreclosure sale of Miami Savings Bank v. Florida Home Finders and that Meyer in turn mortgaged the lands so purchased to Dade County Security Company.

On this showing we cannot say the subrogation suit on the part of Dade County Security Company and that on the part of the appellant involve the same cause of action, that they are of the same character, for the same relief, are in all respects identical; or that a final judgment in the former would support a plea of res adjiidicata in the latter, so the decree appealed from is reversed.

West, C. J., and Whitfield, Ellis, Strum and Brown, J. J., concur.


Cases With Similar Vibessemantic neighbors from the corpus


Citator

Cited By

  • …d of the debt it secured. See Jordan v. Sayre, 29 Fla. 100, 10 So. R. 823; Key West Wharf & Coal Co. v. Porter, 63 Fla. 448, 58 So. R. 599; Crystal River Lumber Co. v. Knight Turpentine Co., 69 Fla. 288, 67 So. R. 974; Meyer v. Florida Home Finders, 90 Fla. 128, 105 So. R. 267. Assuming that the failure to join the junior incumbrancer as a defendant in the foreclosure proceedings of the first mortgage was such an imperfect or irregular proceeding as to subrogate the purchaser at the sale to the rights of…
  • Kumar Corp. v. Nopal Lines, Ltd., 462 So. 2d 1178 (Fla. 3d DCA 1985)
    …nderwriters at Lloyds v. City of Lauderdale Lakes, 382 So. 2d 702 (Fla.1980); Trueman Fertilizer Co. v. Allison, 81 So. 2d 734 (Fla.1955); Lovingood v. Butler Const. Co., 100 Fla. 1252, 131 So. 126 (1930); Meyer v. Florida Home Finders, 90 Fla. 128, 105 So. 267 (1925); Boley v. Daniel, 72 Fla. 121, 72 So. 644 (1916); Price v. Scharps, 405 So. 2d 1043 (Fla. 3d DCA 1981); Furlong v. Leybourne, 138 So. 2d 352 (Fla. 3d DCA 1962); Ulery v. Asphalt Paving, Inc., 119 So. 2d 432 (Fla. 1st DCA 1960). Since a subrog…
  • Lovejoy Co. v. Ackis, 153 Fla. 876 (Fla. 1944)
    …very step of the case that it was not liable as a carrier and has never paid any money and its rights cannot be prejudiced until its liability is established. See Boley v. Daniels, 72 Fla. 121, 72 So. 644; Meyer v. Florida Home Finders, 90 Fla. 128, 105 So. 267. If the insurance carrier had paid the claim, it could successfully contend that its rights had been prejudiced. Its rights in the third party litigation have not been prejudiced, because it denied liability at every step of the litigation, and even…

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