DYCK-O'NEAL, INC., APPELLANT,
v.
KARAKOSTAS KONSTANTINOS, APPELLEE.
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Dyck-O'Neal, Inc. purchased a foreclosure judgment and filed a separate deficiency action against the homeowner. The trial court dismissed the action, holding it lacked subject matter jurisdiction because the original foreclosure proceeding had reserved jurisdiction over the deficiency claim. The Florida District Court of Appeal, Second District reversed, holding that section 702.06, Florida Statutes authorizes independent deficiency actions when the foreclosure court neither granted nor denied the deficiency claim.
The circuit court has subject matter jurisdiction to hear an independent deficiency action in these circumstances. Section 702.06, Florida Statutes plainly authorizes separate deficiency actions when the foreclosure court did not grant or decline to grant the deficiency judgment claim.
[1] A circuit court has subject matter jurisdiction to adjudicate an independent deficiency action when the foreclosure court did not grant or decline to grant the deficiency…
[2] Section 702.06, Florida Statutes (2013), authorizes the filing of an independent deficiency action when deficiency relief was requested in the foreclosure action but not…
Previewing 2 of 3 headnotes on this case. FLexlaw’s editorially structured points of law — every proposition, pinpointed — are reserved for members.
Join FLexlaw to unlock all legal intelligence“the plain language of section 702.06, Florida Statutes (2013), authorizes the filing of an independent deficiency action in such cases because 'the foreclosure court did not grant or decline to grant the deficiency judgment claim.'”
Establishes the core legal principle that independent deficiency actions are authorized when the foreclosure court neither grants nor denies the deficiency claim.
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Join FLexlaw to unlock all legal intelligenceOn March 2, 2009, a final judgment of foreclosure was entered against Konstantinos in favor of JP Morgan Chase. The foreclosure complaint included a p…
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Dyck-O'Neal, Inc., challenges the trial court's final order dismissing its one-count complaint seeking a deficiency judgment against Karakostas Konstantinos. On March 2, 2009, a final judgment of foreclosure was entered against Konstantinos and in favor of JP Morgan Chase. JP Morgan's foreclosure complaint included a prayer for deficiency relief, but the trial court in its final judgment of foreclosure did not address that prayer and instead retained jurisdiction to consider it later. Dyck-O'Neal subsequently purchased the final judgment for the purpose of pursuing the deficiency. After Dyck-O'Neal filed its one-count action against him, Konstantinos moved to dismiss, arguing that because the foreclosure complaint sought to recover the deficiency and because the foreclosure court reserved jurisdiction on the issue, the circuit court lacked subject matter jurisdiction to hear the deficiency claim and Dyck-O'Neal had to seek relief in the original foreclosure proceeding. The trial court agreed and dismissed the complaint. This was error. Because a separate deficiency action such as the underlying one is authorized by the plain language of section 702.06, Florida Statutes (2013), we reverse.
This court has already addressed the issue of "whether a circuit court has subject matter jurisdiction to adjudicate an independent deficiency action when the plaintiff had requested deficiency relief in its complaint in a separate foreclosure action involving the same note and the foreclosure court had entered a final judgment reserving jurisdiction to grant deficiency relief." Gdovin v. Dyck-O'Neal, Inc., 198 So.3d 986, 986 (Fla. 2d DCA 2016). In Gdovin, we concluded that the circuit court does have subject matter jurisdiction in such circumstances, agreeing with the Third District's reasoning in Garcia v. Dyck-O'Neal, Inc., 178 So.3d 433, 436 (Fla. 3d DCA 2015), a case on which Dyck-O'Neal *221relies herein. This court stated: "[T]he plain language of section 702.06, Florida Statutes (2013),[1 ] authorizes the filing of an independent deficiency action in such cases because 'the foreclosure court did not grant or decline to grant the deficiency judgment claim.' " Gdovin, 198 So.3d at 986 (quoting Garcia, 178 So.3d at 436 ).
As such, we reverse the trial court's final order granting Konstantinos's motion to dismiss and remand for further proceedings. Additionally, as we did in Gdovin, we certify conflict with Higgins v. Dyck-O'Neal, Inc., 201 So.3d 157 (Fla. 1st DCA 2016), in which the First District "rejected the Third District's plain language interpretation of section 702.06." Gdovin, 198 So.3d at 987.
Reversed and remanded; conflict certified.
KHOUZAM, SLEET, and BADALAMENTI, JJ., Concur.
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Citator
Authorities Cited
- Wagner v. State, 201 So. 3d 157 (Fla. 3d DCA 2016)
- Garcia v. Dyck-O'Neal, Inc., 178 So. 3d 433 (Fla. 3d DCA 2015)
- Higgins v. Dyck-O'Neal, Inc., 201 So. 3d 157 (Fla. 1st DCA 2016)
- Gdovin v. Dyck-O'Neal, Inc., 198 So. 3d 986 (Fla. 2d DCA 2016)