LPP MORTGAGE LTD., ETC., APPELLANT,
v.
BANK OF AMERICA, N.A., APPELLEE

Fla. 3d DCA | 2002-09-18
No. 3D01-3578
Before JORGENSON, FLETCHER, and RAMIREZ, JJ.
826 So. 2d 462 Florida District Court of Appeal, Third District (2002) Positive Treatment
Cited by 12 cases

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Synopsis

LPP Mortgage appeals a trial court order granting Bank of America relief from judgment under Florida Rule of Civil Procedure 1.540 to correct a judgment that mistakenly omitted $9,459.64 in real estate taxes paid by the bank. The court affirmed, holding that where a party with actual knowledge of an omitted amount remains silent to obtain a windfall, the trial court does not abuse its discretion in correcting the judgment.


Holding

The trial court did not abuse its discretion in granting relief from judgment. Where a party had actual knowledge of an undisputed omitted amount and knew the omission was a mistake, yet remained silent to obtain a windfall, the trial court may correct the judgment to include the omitted amount.


Headnotes

[1] A trial court's ruling on a motion for relief from judgment under Rule 1.540 will not be disturbed on appeal absent a gross abuse of discretion.

[2] A party's actual knowledge of a mistake in a judgment, coupled with silence to obtain a windfall, supports granting relief from judgment.

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Key Quotes

“The discretion reposed in the trial judge by Fla. R. Civ. P. 1.540 is of the broadest scope and in order to reverse a judge's ruling thereunder, there must be a showing of a gross abuse of discretion.”

Establishes the deferential standard of review for Rule 1.540 motions, requiring a showing of gross abuse of discretion to reverse.

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Facts & Procedural History

Bank of America initiated foreclosure proceedings and obtained summary judgment, but the judgment mistakenly omitted $9,459.64 in real estate taxes th…

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Opinion of the Court
PER CURIAM.

PER CURIAM.

LPP Mortgage, Ltd. (LPP) appeals from an order granting the plaintiffs motion for relief from judgment pursuant to Florida Rule of Civil Procedure 1.540 and an order denying the defendant’s motion for rehearing. We affirm.

Bank of America initiated a foreclosure proceeding against the real property owner and the junior lienholders including appellant LPP Mortgage. Prior to Bank of America filing its Motion for Summary Judgment and the affidavit in support of the motion, LPP requested payoff and reinstatement figures. Bank of America provided the figures and specifically referenced the advancement and payment of $9,459.64 in real estate taxes, which Bank of America paid to the Miami-Dade Tax Collector in January 2001. Bank of America’s motion for summary judgment was granted and the foreclosure sale was set.

However, before the foreclosure sale, it was determined that the final summary judgment did not include the $9,459 in taxes paid by Bank of America because that amount was mistakenly omitted from the affidavit in support of Bank of America’s motion for summary judgment.

Accordingly, the Bank of America representative who attended the foreclosure sale brought a revised affidavit reflecting the cost of the tax payment and post-judgment interest on that amount. At the foreclosure sale, LPP opened its bid at $1.00 over the total amount due to Bank of America, including the tax payment. LPP purchased the property with the high bid.

However, the sale attendee failed to file the revised affidavit. Bank of America did not discover the attendee’s failure until after it received its disbursement check, which did not include the taxes paid.

Bank of America filed a Motion for Relief from Judgment pursuant to Rule 1.540, alleging that LPP had actual and constructive knowledge of the tax payment, yet remained silent in order to obtain a windfall from Bank of America’s mistake. The court granted the motion and ruled that LPP could reimburse Bank of America for the taxes paid or the foreclosure judgment would be set aside, LPP would be fully reimbursed, and a new sale date would be scheduled. LPP admitted at the hearing to having actual knowledge of the tax payment. LPP filed a motion for rehearing on the basis that it had already sold the property to an innocent third party prior to the hearing on Bank of America’s motion for relief from judgment. The court denied LPP’s motion for rehearing and ordered LPP to reimburse Bank of America for the taxes paid. LPP appeals.

Whether relief should be granted pursuant to Rule 1.540 is a fact specific question and the trial court’s ruling should not be disturbed on appeal absent a gross abuse of discretion. See, e.g., Schwab & Co. v. Breezy Bay, Inc., 360 So. 2d 117, 118 (Fla. 3d DCA 1978) (“The discretion reposed in the trial judge by Fla. R. Civ. P. 1.540 is of the broadest scope and in order to reverse a judge’s ruling thereunder, there must be a showing of a gross abuse of discretion.”); Edwards v. City of Fort Walton Beach, 271 So. 2d 136 (Fla.1972); see also Johnson v. Sanders, 207 So. 2d 744 (Fla. 1st DCA 1968).

Here, LPP had actual knowledge of the tax payment, the amount was undisputed, and LPP knew that omission of the tax payment from the final judgment was a mistake. Under these circumstances, we find no abuse of discretion in the trial court’s correction of the judgment to include the taxes paid by Bank of America.

AFFIRMED.


Cases With Similar Vibessemantic neighbors from the corpus


Citator

Cited By (12 total)

  • Solmo v. Friedman, 909 So. 2d 560 (Fla. 4th DCA 2005)
    …cation was improper. “Whether relief should be granted pursuant to Rule 1.540 is a fact specific question and the trial court’s ruling should not be disturbed on appeal absent a gross abuse of discretion.” LPP Mortgage Ltd. v. Bank of America, N.A., 826 So. 2d 462, 463-64 (Fla. 3d DCA 2002). Moreover, even if service were defective, Solmo clearly waived the right to challenge the court’s personal jurisdiction by participating pro se, without objection, in two hearings prior to the supplement to the final jud…
  • In re Guardianship OF Theresa Marie Schiavo v. Schiavo, 851 So. 2d 182 (Fla. 2d DCA 2003)
    …ons grounded on general “inequity” of final judgment’s prospective application). Indeed, some cases suggest that an appellate court cannot reverse such an order absent a showing of a gross abuse of discretion. LPP Mortgage Ltd. v. Bank of Am., N.A., 826 So. 2d 462, 463-64 (Fla. 3d DCA 2002); Tilden Groves Holding Corp. v. Orlando/ Orange County Expressway, 816 So. 2d 658 (Fla. 5th DCA 2002); see also Emmer v. Brucato, 813 So. 2d 264, 265 n. 1 (Fla. 5th DCA 2002) (expressing confusion as to difference between…
  • Moralinda Rachid v. Omaira Torres Perez, 26 So. 3d 70 (Fla. 3d DCA 2010)
    …cted to the order denying her motion for rehearing and a denial of her motion to set aside the order granting the motion to enforce the mediated settlement, the standard of review is gross abuse of discretion. LPP Mortgage Ltd. v. Bank of Am., N.A., 826 So. 2d 462, 463-64 (Fla. 3d DCA 2002) (holding that whether relief should be granted ... is a fact specific question and the trial courts ruling should not be dis [*72] turbed on appeal absent a gross abuse of discretion). We additionally note that [t]here is…

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