DYCK-O'NEAL, INC., APPELLANT,
v.
PAUL MCKENNA, APPELLEE

Fla. 4th DCA | 2016-08-12
No. 4D15-3571
GROSS and TAYLOR, JJ., concur.
198 So. 3d 1038 Florida District Court of Appeal, Fourth District (2016) Positive Treatment
Cited by 13 cases

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Synopsis

Dyck-O'Neal, Inc. appealed a dismissal of its deficiency judgment action against Paul McKenna. The court reversed, holding that a separate deficiency action may proceed even when a foreclosure judgment reserves jurisdiction to enter a deficiency judgment, based on the unambiguous language of Florida Statute § 702.06.


Holding

A trial court does not lack jurisdiction over a separate deficiency action merely because the foreclosure judgment contains a reservation of jurisdiction to enter a deficiency judgment, provided the foreclosure court has not already granted or denied a claim for a deficiency judgment. Section 702.06, Florida Statutes, is unambiguous on this point.


Headnotes

[1] A foreclosure judgment's reservation of jurisdiction does not preclude a separate suit to recover a deficiency judgment where the foreclosure court has not granted or den…

[2] A trial court has subject matter jurisdiction over a separate deficiency action even if the original foreclosure judgment expressly retained jurisdiction to enter a defic…

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Key Quotes

“the foreclosure judgment's reservation of jurisdiction does not preclude a separate suit to recover the deficiency where the foreclosure court has not granted or denied a claim for a deficiency judgment”

Establishes the core holding that a separate deficiency action is permitted despite the foreclosure judgment's reservation of jurisdiction

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Facts & Procedural History

EverHome Mortgage Company obtained a foreclosure judgment against McKenna and reserved jurisdiction to enter a deficiency judgment. The foreclosure sa…

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Opinion of the Court
DAMOORGIAN, J.

DAMOORGIAN, J.

Appellant, Dyck-O’Neal, Inc., appeals an order dismissing its suit to recover a' deficiency judgment. Based on our holding in Cheng v. Dyck-O’Neal, Inc., — S0.3d -, 41 Fla. L. Weekly D1076, 2016 WL 2348304 (Fla. 4th DCA May 4, 2016), we reverse the final order of dismissal and remand with instructions to reinstate the complaint.

The genesis of this appeal was a foreclosure judgment in favor of EverHome Mortgage Company and against Appellee, Paul McKenna. The final judgment of foreclosure stated that the trial court retained jurisdiction to enter a. deficiency judgment. The proceeds of the foreclosure sale were insufficient to satisfy , the outstanding ‘judgment. EverHome assigned the judgment , and note to Dyck-O’Neal. • Thereafter, Dyck-O’Neal filed a new complaint against McKenna seeking to collect the “deficiency” (i.e., the difference between the amount of the judgment in the foreclosure action and the fair market value of the foreclosed property as’ of the date of the foreclosure sale). McKen-na filed a motion to dismiss for lack’ of subject matter jurisdiction, arguing that the court lacked jurisdiction over the separate deficiency action because the judgment of foreclosure reserved jurisdiction to enter a deficiency judgment in the court that entered the foreclosure judgment. The court granted the motion to dismiss for lack of subject matter jurisdiction. We note that at the time the trial court dismissed the case, the trial judge did not have the benefit of our decision in Cheng.

The issue presented here has been resolved by this court in Cheng. There, the borrower appealed the denial of his Rule 1.640 motion for relief from judgment on the ground that the trial court lacked jurisdiction to consider the deficiency action because the final judgment of foreclosure included an express reservation of jurisdiction to enter a deficiency judgment. This court held that section 702.06, Florida Statutes, “is unambiguous,” and “the foreclosure judgment’s reservation of jurisdiction does not preclude a separate suit to recover the deficiency where the foreclosure court has not' granted or denied a claim for a deficiency judgment.” Id. (citing Garcia v. Dyck-O’Neal, Inc., 178 So.3d 433 (Fla. 3d DCA 2015), and Dyck-O’Neal, Inc. v. Weinberg, 190 So.3d 137 (Fla. 3d DCA 2016)).

Thus, under this court’s holding, in Cheng, the trial court did not lack jurisdiction over the separate, deficiency action. *1040Recently, the First District Court of Appeal reached the opposite result, holding that a party is not entitled to pursue a separate action at law where the foreclosure complaint includes a prayer for a deficiency judgment and the trial court reserves jurisdiction to enter a deficiency judgment. Higgins v. Dyclo-O’Neal, Inc., — So.3d-, 41 Fla. L. Weekly D1376, 2016 WL 3191146 (Fla. 1st DCA June 9, 2016). Accordingly, we certify conflict with Higgins v. Dyck-O’Neal, Inc., — So.3d-, 41 Fla. L. Weekly D1376, 2016 WL 3191146 (Fla. 1st DCA June 9, 2016).

Reversed and remanded with instructions; conflict certified.

GROSS and TAYLOR, JJ., concur.


Cases With Similar Vibessemantic neighbors from the corpus


Citator

Cited By

  • Dyck-O'Neal, Inc. v. Lanham, 214 So. 3d 802 (Fla. 1st DCA 2017)
    …we certify conflict with Garcia v. Dyck-O’Neal, Inc., 178 So. 3d 433 (Fla. 3d DCA 2015); Dyck-O’Neal, Inc. v. Hendrick, 200 So. 3d 181 (Fla. 5th DCA 2016); Gdovin v. Dyck-O’Neal, Inc., 198 So. 3d 986 (Fla. 2d DCA 2016); Dyck-O’Neal, Inc. v. McKenna, 198 So. 3d 1038 (Fla. 4th DCA 2016). WOLF, RAY, and MAKAR, JJ., CONCUR.…
  • Higgins v. Dyck-O'Neal, Inc., 201 So. 3d 157 (Fla. 1st DCA 2016)
    …99 So. 3d 932 (Fla. 4th DCA 2016) (following holdings in Garcia and Weinberg). The Fourth recently certified the existing conflict with this case in Dyck-O’Neal, Inc. v. Stavola, 198 So. 3d 1131 (Fla. 4th DCA 2016), and Dyck-O’Neal, Inc. v. McKenna, 198 So. 3d 1038 (Fla. 4th DCA 2016).…
  • Dyck-O'Neal, Inc. v. Lanham, 257 So. 3d 1 (Fla. 2018)
    …court of appeal- Garcia v. Dyck-O'Neal, Inc. , 178 So. 3d 433 (Fla. 3d DCA 2015), Dyck-O'Neal, Inc. v. Hendrick , 200 So. 3d 181 (Fla. 5th DCA 2016), Gdovin v. Dyck-O'Neal, Inc. , 198 So. 3d 986 (Fla. 2d DCA 2016), and Dyck-O'Neal, Inc. v. McKenna , 198 So. 3d 1038 (Fla. 4th DCA 2016), regarding whether a complainant may pursue a separate action at law to recover a deficiency judgment when the foreclosure court reserved jurisdiction in its final judgment to adjudicate the deficiency claim. We have jurisdiction…

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