PORTFOLIO INVESTMENTS CORP., APPELLANT,
v.
DEUTSCHE BANK NATIONAL TRUST COMPANY, ETC., ET AL., APPELLEES

Fla. 3d DCA | 2012-02-08
No. 3D11-1677
Before RAMIREZ, SUAREZ, and ROTHENBERG, JJ.
81 So. 3d 534 Florida District Court of Appeal, Third District (2012) Caution
Cited by 23 cases

AI-generated. These summaries, headnotes, and key points are machine-generated and may contain errors or omissions. Always verify against the full opinion text below. Not legal advice.

Synopsis

Portfolio Investments Corp. appeals from a final consent judgment in a mortgage foreclosure action where Deutsche Bank sought to foreclose on property owned by Mendez. Although Portfolio was not a named party and did not formally intervene, it purchased the condominium association's lien claim mid-litigation and actively participated. The court affirmed the judgment but remanded to address the priority of liens after finding Portfolio had standing to appeal based on its active participation and the parties' implicit acceptance of its involvement.


Holding

Portfolio has standing to appeal under the unique circumstances where it actively participated in the litigation, stepped into the Association's shoes as assignee of the lien claim, and neither Deutsche Bank nor Mendez objected to its participation, even though it did not formally intervene. The court affirmed the judgment except for Paragraph 10 concerning lien priority and remanded for the trial court to address the priority of liens at a properly noticed hearing.


Headnotes

[1] A non-party who actively participates in litigation without objection may have standing to appeal, despite not being formally substituted or intervening.

[2] A party's active participation in litigation, including filing motions and attending hearings, can be considered sufficient to grant standing to appeal, even without form…

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Key Quotes

“Under these circumstances, we reject Deutsche Bank's argument, raised for the first time in its answer brief, that Portfolio lacks standing to appeal the order under review.”

The court's holding that Portfolio has standing to appeal despite not being a named party, based on its active participation and implicit acceptance by the parties and trial court.

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Facts & Procedural History

Deutsche Bank filed a foreclosure complaint against Mendez and the Ten Aragon Condominium Association, seeking to establish Deutsche Bank's mortgage a…

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Opinion of the Court
ROTHENBERG, J.

ROTHENBERG, J.

Portfolio Investments Corp. (“Portfolio”) appeals from a Final Consent Judgment for Foreclosure entered in favor of Deutsche Bank National Trust Company (“Deutsche Bank”) and against Annette Mendez (“Mendez”). We affirm all portions of the final judgment except for Paragraph 10, and remand for the limited purpose of addressing the priority of liens.

Deutsche Bank filed a complaint seeking to foreclose a mortgage executed by Mendez and to re-establish the lost note and mortgage, attaching a copy of the mortgage and an assignment of mortgage from the original lender to Deutsche Bank. In addition to Mendez, Deutsche Bank named Ten Aragon Condominium Association, Inc. (“Association”) as a defendant, alleging that the Association held a lis pendens and claim of lien on the mortgaged property that is subordinate and inferior to Deutsche Bank’s interest.

The Association filed an answer to the complaint denying the allegation that its claim of lien was subordinate and inferior. Mendez, however, did not file an answer, and a default was entered against her. Thereafter, Deutsche Bank filed a motion for summary judgment.

More than two years after the foreclosure action was filed, the Association sold and assigned its claim of lien to Portfolio Investments Corp. (“Portfolio”). Within days of the assignment, Portfolio filed a Notice of Lis Pendens and a “Crossclaim to Foreclose Condominium Lien” against Mendez seeking an accounting and a monetary judgment. After filing its cross-claim, Portfolio began to actively participate in the litigation by noticing Mendez for a deposition, propounding discovery on Deutsche Bank, re-noticing the parties that Mendez’s opposition to the deposition would be addressed at a status conference hearing, attending hearings, and filing other motions. In fact, the trial court ruled on several matters directly affecting Portfolio, including ordering Mendez to appear *536for deposition and warning her that if she failed to appear, a default would be entered against her as to the crossclaim. Although Portfolio did not move to intervene, see Fla. R. Civ. P. 1.230, or to substitute itself for the Association, see Fla. R. Civ. P. 1.260(c), Portfolio actively participated in the litigation without objection from either Mendez or Deutsche Bank.

Ultimately, the trial court granted Deutsche Bank’s motion for summary judgment after Mendez’s counsel informed the trial court that Mendez had no objection. Deutsche Bank submitted the Final Consent Judgment for Foreclosure, which was executed by Deutsche Bank and Mendez, along with the original note, mortgage, and assignment of mortgage. Paragraph 10 of the consent judgment provides that Deutsche Bank’s lien is superior to the Association’s claim of lien. The trial court executed the judgment, and thereafter, it denied Portfolio’s motion for rehearing and to set aside the summary judgment. Portfolio’s appeal follows.

Portfolio has raised several arguments on appeal. In its answer brief, however, Deutsche Bank does not address these arguments, but merely argues that Portfolio lacks standing to bring this appeal because it did not move to intervene or to substitute itself for the Association. Under the unique circumstances of this case, we disagree.

Generally, a non-party in the lower tribunal is a “stranger to the record” and, therefore, lacks standing to appeal an order entered by the lower tribunal. Barnett v. Barnett, 705 So.2d 63, 64 (Fla. 4th DCA 1997) (holding that bank that failed to intervene “was not a party to the proceeding below,” and therefore, “has no standing to appeal the adverse order”); see also Fla. R.App.P. 9.020(g)(1) (defining “appellant” as “[a] party who seeks to invoke the appeal jurisdiction of a court”) (emphasis added); Morrell v. Nat'l Health Investors, Inc., 876 So.2d 580, 580-81 (Fla. 1st DCA 2004) (dismissing appeal as person filing appeal “was not a party to the proceedings below” and, therefore, “cannot participate in appellate review”); Penabad v. A.G. Gladstone Assocs., 823 So.2d 146, 147 (Fla. 3d DCA 2002) (dismissing appeal for lack of standing because individual filing appeal “was not a party to the underlying motion to dissolve lis pendens”); Cf. Visoly v. Sec. Pac. Credit Corp., 768 So.2d 482, 489 (Fla. 3d DCA 2000) (holding that as to the assessment of attorney’s fees under section 57.105, “[a] ‘party’ is defined under Florida law as any person who participates in litigation regardless of whether or not actually named in the pleadings”).

In the instant case, it is undisputed that Portfolio was not a named party and did not seek to intervene or to substitute itself for the Association. However, under the unique circumstances of this case, there is no doubt that Portfolio was not a “stranger to the record.” Within days of Portfolio’s purchase of the claim of lien, Portfolio actively began to participate in the litigation. Moreover, the record demonstrates that Deutsche Bank and Mendez understood that Portfolio, as the assignee of the Association’s claim of lien, had stepped into the Association’s shoes and had adopted the position raised by the Association in its answer to the complaint, and that Deutsche Bank and Mendez did not object to Portfolio’s participation in the litigation. Further, the trial court treated Portfolio as party to the litigation by ruling on Portfolio’s motions and allowing it to participate at hearings. Under these circumstances, we reject Deutsche Bank’s *537argument, raised for the first time in its answer brief, that Portfolio lacks standing to appeal the order under review.1

In its answer brief, Deutsche Bank failed to address the merits of Portfolio’s arguments, but we have done so, finding merit as to one of its contentions. Portfolio’s crossclaim sought an accounting of the amount due by Mendez and a monetary judgment against Mendez, but did not assert any claim against Deutsche Bank or a claim that Portfolio’s lien is superior to Deutsche Bank’s interest. However, as Portfolio stepped into the shoes of the Association, and the Association’s answer asserted that its claim of lien was superior to Deutsche Bank’s interest, this issue relating to priority of liens was before the trial court. The record before this Court demonstrates that Deutsche Bank did not properly notice Portfolio that its motion for summary judgment would be addressed at a hearing. Fla. R. Civ. P. 1.510(c). Accordingly, we affirm all portions of the final consent judgment except for Paragraph 10 as it directly affects Portfolio’s interest, and remand for further proceedings. On remand, the trial court is instructed to address the priority of the liens at a properly noticed hearing.2

Affirmed, but remanded.


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Citator

Cited By (14 total)

  • Bondi v. Tucker, 93 So. 3d 1106 (Fla. 1st DCA 2012)
    …er § 16.01(4), Fla. Stat.” A party who suffers an adverse judgment in circuit court has the right to appeal, but non-parties whose rights have not been adjudicated have no right of appeal. See Portfolio Invs. Corp. v. Deutsche Bank Nat’l Trust Co., 81 So. 3d 534, 536 (Fla. 3d DCA 2012) (“Generally, a non-party in the lower tribunal is a ‘stranger to the record’ and, therefore, lacks standing to appeal an order entered by the lower tribunal.”); Morrell v. Nat’l Health Investors, Inc., 876 So. 2d 580, 580-81…
  • …entitled to appeal a person must be aggrieved by the judgment, an appeal from a . . . judgment will be dismissed where there is nothing in it prejudicial to the claimed rights of the appellant.”); Portfolio Invs. Corp. v. Deutsche Bank Nat. Tr. Co., 81 So. 3d 534, 536 (Fla. 3d DCA 2012) (quoting Barnett v. Barnett, 705 So. 2d 63, 64 (Fla. 4th DCA 1997)) (“[A] non-party in the lower tribunal is a ‘stranger to the record’ and, therefore, lacks standing to appeal an order entered by the lower tribunal.”).…
  • YHT & Assocs., Inc. v. Nationstar Mortg. LLC, 177 So. 3d 641 (Fla. 2d DCA 2015)
    …rvices, LLC v. JPMorgan Chase Bank, National Ass’n, 152 So. 3d 83 (Fla. 1st DCA 2014), gives no indication of any dispute as to the appellant’s status as a party in the trial court. In Portfolio Investments Corp. v. Deutsche Bank National Trust Co., 81 So. 3d 534, 536 (Fla. 3d DCA 2012), the court acknowledged the principle that a nonparty in the trial court is a “stranger to the record” but also ruled that the “unique circumstances” of that case gave the appellant standing to appeal. The “unique circumstanc…

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