ROBERT SARHAN, ET AL., APPELLANTS,
v.
H & H INVESTORS, INC., APPELLEE
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The Florida Third District Court of Appeal reversed a final judgment of foreclosure, holding that a trial court exceeded its reserved jurisdiction when it entered a foreclosure judgment based on a settlement agreement that did not expressly authorize such a remedy upon default. The court's continuing jurisdiction to enforce settlement terms is limited to what the parties actually agreed upon.
The trial court exceeded its reserved jurisdiction by entering a final judgment of foreclosure. When a trial court approves a settlement agreement and retains jurisdiction to enforce it, the court's jurisdiction is limited to enforcing the specific terms to which the parties agreed. Because the settlement agreement did not include a provision authorizing the court to enter a final judgment of foreclosure upon default, the court lacked authority to do so.
[1] A trial court's jurisdiction to enforce a settlement stipulation, even when jurisdiction is expressly reserved, is limited by the terms of the stipulation itself.
[2] A trial court exceeds its jurisdiction by entering a final judgment of foreclosure based on a settlement stipulation if the stipulation does not contain a provision autho…
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Join FLexlaw to unlock all legal intelligence“When a trial court approves a settlement agreement by order and retains jurisdiction to enforce its terms, the trial court's continuing jurisdiction to enforce the terms of the settlement agreement is circumscribed by the terms of the agreement.”
Establishes the fundamental principle that a court's reserved jurisdiction is limited by the scope of the actual settlement agreement.
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Join FLexlaw to unlock all legal intelligenceSarhan defaulted on a balloon note and mortgage. H & H Investors filed suit for foreclosure. The parties reached a settlement agreement that modified …
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This is an appeal from a final judgment of foreclosure based upon an order granting the plaintiffs, H & H Investors, Inc., motion to enforce the parties’ stipulation of settlement, which was approved by the trial court. Because we find the trial court did not have jurisdiction to enforce the stipulation of settlement by way of foreclosure, we reverse the final judgment of foreclosure.
After Sarhan defaulted on his balloon note and mortgage, H & H Investors filed suit for foreclosure with the circuit court. The parties ultimately reached a stipulation of settlement, which modified the terms of the promissory note and mortgage to add all past-due interest to the *220principal balance of the loan, reduce the interest rate on the loan, and extend the due date. Although the parties stipulated that “[a]ll terms of the mortgage ... that have not been specifically modified herein, shall remain in full force and effect,” the stipulation was silent on any remedies H & H Investors could pursue if Sarhan again were to default on the note and mortgage. The trial court approved the stipulation in an order that dismissed the action without prejudice, “reserv[ing] jurisdiction over the parties for the purpose of enforcing the [stipulation of [sjettlement, if needed.”
Sarhan again defaulted on the note and mortgage. In response, H & H Investors filed a motion to enforce the stipulation of settlement with the trial court, seeking a final judgment of foreclosure. After an evidentiary hearing, the trial court granted H & H Investor’s motion to enforce the stipulation of settlement, finding Sarhan in default for failing to make timely payments on the mortgage. The trial court subsequently entered a final judgment of foreclosure, which Sarhan now appeals.
When a trial court approves a settlement agreement by order and retains jurisdiction to enforce its terms, the trial court’s continuing jurisdiction to enforce the terms of the settlement agreement is circumscribed by the terms of the agreement. See Paulucci v. Gen. Dynamics Corp., 842 So.2d 797, 803 (Fla.2003). In this case, the parties agreed in their stipulation to modify the terms of the note and mortgage. The stipulation did not include a provision authorizing the trial court to summarily enter a final judgment of foreclosure upon a default. In so doing, the trial court exceeded the jurisdiction it reserved for itself in the order of dismissal. Compare Zimmerman v. Olympus Fid. Trust, LLC, 847 So.2d 1101, 1102 n. 2 (Fla. 4th DCA 2003) (“Although the settlement agreement provided that the Zimmermans ... ‘agree[d]’ to waive any defenses to the foreclosure of the mortgage, ... [t]he agreement fell short of providing that if the payments were not made when due, a final judgment of foreclosure could be entered against the Zimmermans.”), with BAC Int'l Credit Corp. v. Macia, 626 So.2d 1037, 1038 (Fla. 3d DCA 1993) (finding the settlement should have been enforced in accordance with its terms, which “provided that if the payments were not made when due, an agreed final judgment of foreclosure would be entered against the borrowers”).
Reversed and remanded for further proceedings.
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Platinum Luxury Auctions, LLC v. Concierge Auctions, LLC, 227 So. 3d 685 (Fla. 3d DCA 2017)…eement by order and retains jurisdiction to enforce its terms, the trial court has the jurisdiction to enforce the terms of the settlement agreement. See Paulucci v. Gen. Dynamics Corp,, 842 So. 2d 797, 803 (Fla. 2003); Sarhan v. H & H Inv’rs, Inc., 88 So. 3d 219, 220 (Fla. 3d DCA 2011). It is well-established, however, that “the extent of the court’s continuing jurisdiction to enforce the terms of the settlement agreement is circumscribed by the terms of that agreement.” Paulucci, 842 So. 2d at 803; see als…
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Pinnacle Three Corp. v. EVS Invs., Inc., 193 So. 3d 973 (Fla. 3d DCA 2016)…ion may also seek attorney’s fees and costs. The trial court was entirely correct that the appellees’ motion to enforce went well beyond the specific obligations of the parties detailed in the settlement agreement. See Sarhan v. H & H Inv’rs, Inc., 88 So. 3d 219 (Fla. 3d DCA 2011). The trial court’s retention of jurisdiction to enforce the agreement is circumscribed by the terms of the settlement agreement itself. Paulucci v. Gen. Dynamics Corp., 842 So. 2d 797, 803 (Fla.2003). That said, however, Pinnacle…
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Miami-Dade Cnty. v. Concrete Structures, Inc., 114 So. 3d 333 (Fla. 3d DCA 2013)…settlement agreement by order and retains jurisdiction to enforce its terms, the trial court’s continuing jurisdiction to enforce the terms of the settlement agreement is circumscribed by the terms of the agreement.” Sarhan v. H & H Investors, Inc., 88 So. 3d 219, 220 (Fla. 3d DCA 2011). D. The Public Interest The public interest in assuring that wetlands and a protected aquifer are protected from contaminants is self-evident. CSI’s argument, and the trial court’s finding, that “unannounced inspections and…
Authorities Cited
- Jeno F. Paulucci v. Gen. Dynamics Corp., 842 So. 2d 797 (Fla. 2003)
- BAC Int'l Credit Corp. v. MacIa, 626 So. 2d 1037 (Fla. 3d DCA 1993)
- Laurence Zimmerman and Kimberly Zimmerman v. Olympus Fid. Tr., LLC, 847 So. 2d 1101 (Fla. 4th DCA 2003)