KRISTY S. HOLT, APPELLANT,
v.
WELLS FARGO BANK, N.A., APPELLEE

Fla. 4th DCA | 2010-04-14
No. 4D09-3015
GROSS, C.J., and POLEN, J., concur.
32 So. 3d 194 Florida District Court of Appeal, Fourth District (2010) Positive Treatment
Cited by 4 cases

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Synopsis

In a mortgage foreclosure case, the trial court vacated a default judgment against an out-of-state property owner, finding it lacked personal jurisdiction to enter a deficiency judgment despite having in rem jurisdiction over the Florida property. The appellate court affirmed the vacation of default but reversed the finding of lack of personal jurisdiction, holding that ownership of Florida real property under Florida's long-arm statute provides a sufficient basis for personal jurisdiction in foreclosure cases.


Holding

A trial court has personal jurisdiction over a non-resident property owner under Florida's long-arm statute when the defendant owns real property in Florida and the cause of action arises from that ownership, such as in a mortgage foreclosure case. The 1993 amendment to section 48.193(1)(c) extending jurisdiction to those holding mortgages or liens did not eliminate the long-standing basis of jurisdiction based on property ownership itself.


Headnotes

[1] Ownership of real property within Florida is sufficient to establish personal jurisdiction over a non-resident defendant when the cause of action arises from such ownersh…

[2] The 1993 amendment to Florida's long-arm statute, which added "holding a mortgage or other lien on," extended, rather than eliminated, personal jurisdiction based on the…

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Key Quotes

“The complaint in this case alleged Holt's ownership of Florida real property and thus the trial court erred in ruling it lacked the personal jurisdiction necessary to support the entry of a deficiency judgment.”

The court's holding that ownership of Florida real property provides sufficient basis for personal jurisdiction in foreclosure cases.

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Facts & Procedural History

Wells Fargo Bank filed a mortgage foreclosure complaint against Kristy Holt, an out-of-state property owner, regarding real property located in Browar…

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Opinion of the Court
STEVENSON, J.

STEVENSON, J.

In this mortgage foreclosure case, the bank filed a complaint seeking to foreclose on a mortgage on real property located in Broward County, Florida. Holt, the out-of-state owner of the real property, was personally served with process at her California home and, when she failed to file an answer, a default was entered. Several months later, the non-resident property owner filed a motion to quash service of process and vacate the default, asserting the complaint did not allege facts that would support the exercise of personal jurisdiction under Florida’s long-arm statute. The trial court accepted the property owner’s argument and found that it lacked the personal jurisdiction necessary to enter a deficiency judgment, but refused to quash service of process as it had in rem jurisdiction over the Florida real property. The court vacated the default and afforded the property owner the opportunity to file an answer. Both parties have challenged the trial court’s July 13, 2009 order. We affirm the order appealed in all respects, save the trial court’s finding that it lacked personal jurisdiction over the non-resident property owner and write primarily to address that issue.

Prior to 1993, section 48.193(l)(c), Florida Statutes, provided that “[ojwning, using, or possessing any real property within this state” was sufficient to give rise to personal jurisdiction provided the cause of action arose from such ownership, use, or possession. Ownership of real property in Florida was thus held sufficient to establish personal jurisdiction where the cause of action arose from such ownership. See Nichols v. Paulucci, 652 So.2d 389, 392 n. 5 (Fla. 5th DCA 1995); cf. Damoth v. *195 Reinitz, 485 So.2d 881, 883 (Fla. 2d DCA 1986).

In 1993, the legislature amended subsection (l)(c), adding the words “holding a mortgage or other lien on,” such that the statute now provides “[ojwning, using, possessing, or holding a mortgage or other lien on any real property within this state” gives rise to personal jurisdiction. Despite the appellant’s argument to the contrary, we do not believe that the amendment eliminated the ownership of real property as a basis for the establishment of personal jurisdiction and the exercise of long-arm jurisdiction. In context, the amended statute is more reasonably read as extending personal long-arm jurisdiction to those “holding a mortgage or other lien on” real property in Florida, rather than eliminating the long-standing jurisdictional basis for those “owning ... real property within this state.” The complaint in this case alleged Holt’s ownership of Florida real property and thus the trial court erred in ruling it lacked the personal jurisdiction necessary to support the entry of a deficiency judgment.

As for that portion of the trial court’s order which vacates the default, we find that the bank failed to meet its burden of establishing error. The instant case is remanded to the trial court for further proceedings consistent with this opinion.

Affirmed in part; Reversed in pari; and Remanded.

GROSS, C.J., and POLEN, J., concur.


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Citator

Cited By

  • Aluia v. Dyck-O'Neal, Inc., 205 So. 3d 768 (Fla. 2d DCA 2016)
    …39, 1141 (Fla. 2d DCA 2006))). Thus, the circuit court has personal jurisdiction over Mr. Aluia, and venue is proper in Lee County where the deficiency action was filed. See Metnick & Levy, 123 So. 3d at 642; see also Holt v. Wells Fargo Bank, N.A., 32 So. 3d 194, 195 (Fla. 4th DCA 2010) -(concluding that circuit court had [*772] personal jurisdiction over defendant for purposes of deficiency judgment). Moreover, although not argued by DONI, it is apparent that Mr. Aluia’s motion was also correctly denied b…
  • Dyck-O'Neal, Inc. v. Rojas, 197 So. 3d 1200 (Fla. 5th DCA 2016)
    …itself, ownership of property is insufficient to subject a nonresident defendant to the jurisdiction of the courts of this state, unless the cause of action arose out of such ownership.” (citation omitted)); see also Holt v. Wells Fargo Bank, N.A., 32 So. 3d 194, 195 (Fla. 4th DCA 2010) (explaining that 1993 amendment to section 48.193(l)(a)3., adding the words “holding a mortgage or other lien on,” is more reasonably read to extend personal long-arm jurisdiction to those holding a mortgage or lien on real…

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