[1] |
DISTRICT COURT OF APPEAL OF THE STATE OF
FLORIDA FOURTH DISTRICT January Term 2011 |
[2] |
No. 4D10-378 |
[3] |
2011.FL.0002225 |
[4] |
March 30, 2011 |
[5] |
ROMAN PINO, APPELLANT,
v.
THE BANK OF NEW YORK MELLON, APPELLEE. |
[6] |
Appeal of a non-final order from the Circuit
Court for the Fifteenth Judicial Circuit, Palm Beach County; Meenu Sasser,
Judge; L.T. Case No. 50 2008 CA 031691 XXXXMB. |
[7] |
Enrique Nieves III and Chris T. Immel of Ice
Legal, P.A., West Palm Beach, for appellant. Nancy M. Wallace, Katherine
E. Giddings and William P. Heller of Akerman Senterfitt, Tallahassee and
Fort Lauderdale, for appellee. |
[8] |
The opinion of the court was delivered by:
Warner, J. |
[9] |
EN BANC |
[10] |
ON MOTION FOR CLARIFICATION |
[11] |
We grant the motion for clarification,
withdraw our previously issued opinion and substitute the following in its
place. |
[12] |
The defendant in a mortgage foreclosure
action filed by BNY Mellon appeals a trial court's denial of his motion
under Florida Rule of Civil Procedure 1.540(b) to vacate a voluntary
dismissal. The notice was filed after the defendant moved for sanctions
against the plaintiff for filing what he alleged was a fraudulent
assignment of mortgage. Because the notice of voluntary dismissal was
filed prior to the plaintiff obtaining any affirmative relief from the
court, we affirm the trial court's order. |
[13] |
BNY Mellon commenced an action to foreclose
a mortgage against the defendant. The mortgage attached to the complaint
specified another entity, Silver State Financial Systems, as lender and
still another, Mortgage Electronic Registration Systems, as mortgagee. The
complaint alleged that BNY Mellon owned and held the note and mortgage by
assignment, but failed to attach a copy of any document of assignment. At
the same time, it alleged the original promissory note itself had been
"lost, destroyed or stolen." The complaint was silent as to
whether the note had ever been negotiated and transferred to BNY Mellon in
the manner provided by law. XXX 1 |
[14] |
The defendant initially sought dismissal for
failure to state a cause of action, arguing that in light of the claim of
a lost instrument, the absence of an assignment of mortgage was a critical
omission. BNY Mellon responded by amending the complaint only to attach a
new unrecorded assignment, which happened to be dated just before the
original pleading was filed. |
[15] |
In response to this amendment, defendant
moved for sanctions. He alleged that the newly produced document of
assignment was false and had been fraudulently made, pointing to the fact
that the person executing the assignment was employed by the attorney
representing the mortgagee, and the commission date on notary stamp showed
that the document could not have been notarized on the date in the
document. The defendant argued that the plaintiff was attempting fraud on
the court and that the court should consider appropriate sanctions, such
as dismissal of the action with prejudice. Concurrent with the filing of
this motion, the defendant scheduled depositions of the person who signed
the assignment, the notary, and the witnesses named on the document -- all
employees of Florida counsel for BNY Mellon -- for the following day.
Before the scheduled depositions, BNY Mellon filed a notice of voluntary
dismissal of the action. |
[16] |
Five months later, BNY Mellon refiled an
identical action to foreclose the same mortgage. The new complaint no
longer claimed the note was lost and attached a new assignment of mortgage
dated after the voluntary dismissal. In the original, dismissed action,
the defendant filed a motion under rule 1.540(b), seeking to strike the
voluntary dismissal in the original action on the grounds of fraud on the
court and for a dismissal of the newly filed action as a consequent
sanction, requesting an evidentiary hearing. The trial court denied the
motion without an evidentiary hearing, essentially holding that, because
the previous action had been voluntarily dismissed under rule 1.420, the
court lacked jurisdiction and had no authority to consider any relief
under rule 1.540(b). |
[17] |
We affirm the trial court's refusal to
strike the notice of voluntary dismissal. Neither rule 1.540(b) nor the
common law exceptions to that rule allow a defendant to set aside the
plaintiff's notice of voluntary dismissal where the plaintiff has not
obtained any affirmative relief before dismissal. |
[18] |
Rule 1.420(a) permits a plaintiff to dismiss
an action without order of the court "at any time" before a
motion for summary judgment is heard or before retirement of the jury or
submission to the court if the matter is tried non-jury. "Our courts
have consistently construed this rule as meaning that, at any time before
a hearing on a motion for summary judgment, a party seeking affirmative
relief has nearly an absolute right to dismiss his entire action once,
without a court order, by serving a notice of dismissal." Ormond
Beach Assocs. Ltd. v. Citation Mortg., Ltd., 835 So. 2d 292, 295 (Fla. 5th
DCA 2002); see also Meyer v. Contemporary Broadcasting Co., 207 So. 2d
325, 327 (Fla. 4th DCA 1968). The courts have carved out narrow exceptions
to this entitlement: |
[19] |
The only recognized common law exception to
the broad scope of this rule is in circumstances where the defendant
demonstrates serious prejudice, such as where he is entitled to receive
affirmative relief or a hearing and disposition of the case on the merits,
has acquired some substantial rights in the cause, or where dismissal is
inequitable. See Romar Int'l, Inc. v. Jim Rathman Chevrolet/Cadillac,
Inc., 420 So. 2d 346 (Fla. 5th DCA 1982); Visoly v. Bodek,
602 So. 2d 979
(Fla. 3d DCA 1992). |
[20] |
Ormond, 835 So. 2d at 295. In Visoly, the
court granted a motion to strike the complaint as a sham. Finding that
rule 1.150(a) operated much like a motion for summary judgment, the court
concluded that the plaintiff could not voluntarily dismiss his complaint
pursuant to rule 1.420(a) where the trial court had granted the motion to
strike, which was equivalent to the granting of a motion for summary
judgment. |
[21] |
The most applicable common law exception to
the right to a voluntary dismissal was applied in Select Builders of
Florida, Inc. v. Wong, 367 So. 2d 1089 (Fla. 3d DCA 1979). There, the
court affirmed the trial court's striking of a notice of voluntary
dismissal where the plaintiff sought to perpetrate a fraud by the filing
of the notice of voluntary dismissal. Select Builders had filed suit to
expunge an injunction against a condominium developer, granted in Federal
Court in Illinois, and improperly filed in the public records of Dade
County. The trial court issued an order expunging the document and
enjoining the filing of any other like documents without domesticating the
judgment in Florida. Later, it was discovered that Select Builders had
perpetrated a fraud upon the court in obtaining the order expunging the
document. The trial court vacated its prior order, and the appellees moved
for sanctions and fees. The court also ordered Select Builders to take
steps to preserve the status quo and to make payment of monies it received
in connection with the sale of some of the property subject to the
injunction to a third party. Select Builders then filed a notice of
voluntary dismissal, which the trial court struck to retain jurisdiction
over the case. |
[22] |
The appellate court affirmed, concluding
that the court correctly retained jurisdiction to prevent a fraud on the
court. "The plaintiff had obtained the affirmative relief it sought,
its actions in the cause in the trial court may have been fraudulent on
the court and it certainly was within its inherent power (as an equity
court) to protect its integrity." Id. at 1091. The court
distinguished other cases in which the plaintiff's right to take a
voluntary dismissal was deemed absolute: "First, the plaintiff in the
cited cases had not received affirmative relief from an equity court and,
secondly, no question of fraud on the court was involved." Id. |
[23] |
In Select Builders the plaintiff obtained
affirmative relief by the granting of the suspect injunction, and it had
obtained such relief by fraud. Comparing the facts of Select Builders to
this case, we find that the BNY Mellon had not obtained any type of
affirmative relief. Even if the assignment of mortgage was
"fraudulent" in that it was not executed by the proper party, it
did not result in any relief in favor of BNY Mellon. Select Builders is
thus distinguishable from the present case. In Bevan v. D'Alessandro,
395 So. 2d 1285
, 1286 (Fla. 2d DCA 1981), the court likewise distinguished Select
Builders on the grounds that the "plaintiff had received affirmative
relief to which he was not entitled and sought to avoid correction of the
trial court's error by taking a voluntary dismissal." No such
circumstance is present in this case. |
[24] |
The appellant argues that rule 1.540(b) also
provides a method to seek relief from a notice of voluntary dismissal. We
disagree that the defendant/appellant may utilize that rule where the
defendant has not been adversely affected by the voluntary dismissal. Rule
1.540(b) allows a court to relieve a party from a "final judgment,
decree, order, or proceeding" based upon any of five grounds set out
in the rule: (1) mistake, inadvertence, surprise, or excusable neglect;
(2) newly discovered evidence; (3) fraud or other misconduct of an adverse
party; (4) that the judgment or decree is void; or (5) that the judgment
or decree has been satisfied or released. A notice of voluntary dismissal
constitutes a "proceeding" within the meaning of the rule. See
Miller v. Fortune Ins. Co.,
484 So. 2d 1221
, 1224 (Fla. 1986). Therefore, the rule may be invoked, even though for
all other purposes the trial court has lost jurisdiction over the cause.
Id. Indeed, in Shampaine Industries, Inc. v. South Broward Hospital
District,
411 So. 2d 364
, 368 (Fla. 4th DCA 1982), approved by the supreme court in Miller, we
held: "Rule 1.540(b) may be used to afford relief to all litigants
who can demonstrate the existence of the grounds set out in the
Rule." |
[25] |
The rule, however, is limited to relieving a
party of a judgment, order or proceeding. "Relieve" means
"[t]o ease or alleviate (pain, distress, anxiety, need, etc.) . . .
to ease (a person) of any burden, wrong, or oppression, as by legal
means." The Random House Dictionary of the English Language 1212
(1967). A defendant may obtain such "relief" when a plaintiff
has obtained a ruling that has adversely impacted the defendant. Here, the
defendant has not been adversely impacted by a ruling of the court. The
fact that a defendant may have incurred attorney's fees and costs is not
an adverse impact recognized as meriting relief. See Serv. Experts, LLC v.
Northside Air Conditioning & Elec. Serv. Inc., 2010 WL 4628567 (Fla.
2d DCA 2010). Therefore, because the defendant has not suffered an adverse
ruling or impact from the notice of voluntary dismissal, he is not
entitled to seek relief pursuant to the rule. |
[26] |
The dissent is certainly correct that a
court possesses the authority to protect judicial integrity in the
litigation process. However, the cases cited in support of a court
exercising such authority all involved the court granting a motion for
involuntary dismissal where the plaintiff had engaged in deceitful conduct
during a still pending case. See Ramey v. Haverty Furn. Co., 993 So. 2d
1014, 1020 (Fla. 2d DCA 2008); McKnight v. Evancheck, 907 So. 2d 699, 700
(Fla. 4th DCA 2005); Morgan v. Campbell, 816 So. 2d 251, 253 (Fla. 2d DCA
2002). In each of those proceedings, the defendant moved for the sanction
of dismissal of an ongoing proceeding based upon "fraud on the
court." That term has been described as follows: |
[27] |
A "fraud on the court" occurs
where it can be demonstrated, clearly and convincingly, that a party has
sentiently set in motion some unconscionable scheme calculated to
interfere with the judicial system's ability impartially to adjudicate a
matter by improperly influencing the trier or unfairly hampering the
presentation of the opposing party's claim or defense. |
[28] |
Aoude v. Mobil Oil Corp., 892 F.2d 1115,
1118 (1st Cir. 1989). Dismissal is a remedy to be used only in the most
extreme cases, as "[g]enerally speaking, ... allegations of
inconsistency, nondisclosure, and even falseness, are best resolved by
allowing the parties to bring them to the jury's attention through cross
examination or impeachment, rather than by dismissal of the entire
action." Granados v. Zehr, 979 So. 2d 1155, 1158 (Fla. 5th DCA 2008)
(emphasis added). |
[29] |
Here, we do not view it as an appropriate
exercise of the inherent authority of the court to reopen a case
voluntarily dismissed by the plaintiff simply to exercise that authority
to dismiss it, albeit with prejudice. Only in those circumstances where
the defendant has been seriously prejudiced, as noted in Romar
International, should the court exercise its inherent authority to strike
a notice of voluntary dismissal. The defendant in this case does not
allege any prejudice to him as a result of the plaintiff's voluntary
dismissal of its first lawsuit. Indeed, he may have benefitted by
forestalling the foreclosure. |
[30] |
The appropriate procedure is to follow Rule
1.420. Upon the voluntary dismissal, Pino would be entitled to his costs
and possibly his attorney's fees. See Fleet Servs. Corp. v. Reise, 857 So.
2d 273 (Fla. 2d DCA 2003). The court can require payment as a precondition
to the second suit. See Fla. R. Civ. P. 1.420(d). Moreover, a referral of
the appellee's attorney for a violation of the Code of Professional
Responsibility for filing the complaint with the alleged false affidavit
is in order. XXX 2 |
[31] |
We conclude that this is a question of great
public importance, as many, many mortgage foreclosures appear tainted with
suspect documents. The defendant has requested a denial of the equitable
right to foreclose the mortgage at all. If this is an available remedy as
a sanction after a voluntary dismissal, it may dramatically affect the
mortgage foreclosure crisis in this State. Accordingly we certify the
following question to the Florida Supreme Court as of great public
importance: |
[32] |
DOES A TRIAL COURT HAVE JURISDICTION AND
AUTHORITY UNDER RULE 1.540(b), Fla. R. Civ. P., OR UNDER ITS INHERENT
AUTHORITY TO GRANT RELIEF FROM A VOLUNTARY DISMISSAL WHERE THE MOTION
ALLEGES A FRAUD ON THE COURT IN THE PROCEEDINGS BUT NO AFFIRMATIVE RELIEF
ON BEHALF OF THE PLAINTIFF HAS BEEN OBTAINED FROM THE COURT? |
[33] |
Affirmed. |
[34] |
GROSS, C.J., STEVENSON, TAYLOR, MAY,
DAMOORGIAN, CIKLIN, GERBER, LEVINEandCONNER, JJ.,concur. |
[35] |
HAZOURI, J.,recused. |
[36] |
POLEN, J.,dissents with opinion. |
[37] |
POLEN, J.,dissenting. XXX
3 |
[38] |
Rule 1.420(a)(1) allows a plaintiff to
voluntarily dismiss a case simply by serving a notice at any time before
trial or hearing on summary judgment. Initially in Randle-Eastern
Ambulance Service v. Vasta,
360 So. 2d 68
(Fla. 1978), the court held that such a dismissal took the case out of the
power of the court for all purposes, explaining: |
[39] |
"The right to dismiss one's own lawsuit
during the course of trial is guaranteed by Rule 1.420(a), endowing a
plaintiff with unilateral authority to block action favorable to a
defendant which the trial judge might be disposed to approve. The effect
is to remove completely from the court's consideration the power to enter
an order, equivalent in all respects to a deprivation of 'jurisdiction'.
If the trial judge loses the ability to exercise judicial discretion or to
adjudicate the cause in any way, it follows that he has no jurisdiction to
reinstate a dismissed proceeding. The policy reasons for this consequence
support its apparent rigidity." |
[40] |
360 So. 2d at 69. But later in Miller v.
Fortune Insurance Co., 484 So. 2d 1221 (Fla. 1986), the court retreated
from its statement in Randle-Eastern Ambulance about the "remov[ing
the cause] completely from the court's consideration the power to enter an
order." Instead the Miller court specified an exception in rule
1.540(b) to the complete loss of jurisdiction from a voluntary dismissal: |
[41] |
"A trial judge is deprived of
jurisdiction, not by the manner in which the proceeding is terminated, but
by the sheer finality of the act, whether judgment, decree, order or
stipulation, which concludes litigation. Once the litigation is terminated
and the time for appeal has run, that action is concluded for all time.
There is one exception to this absolute finality, and this is rule 1.540,
which gives the court jurisdiction to relieve a party from the act of
finality in a narrow range of circumstances." [e.s.] |
[42] |
484 So. 2d at 1223. Miller explicitly held
that "that Rule 1.540(b) may be used to afford relief to all
litigants who can demonstrate the existence of the grounds set out under
the rule."XXX 4 In this case, defendant
contends that the court had authority here to consider his motion for
relief on the merits because he asserted a specific basis authorized by
rule 1.540(b). |
[43] |
Rule 1.540(b)(3) provides: |
[44] |
"On motion and upon such terms as are
just, the court may relieve a party ... from a final judgment, decree,
order, or proceeding for ... fraud (whether ... intrinsic or extrinsic),
misrepresentation, or other misconduct of an adverse party." [e.s.] |
[45] |
In Select Builders of Florida v. Wong, 367
So. 2d 1089 (Fla. 3d DCA 1979), the Third District agreed that rule
1.540(b) affords a basis to strike a notice of voluntary dismissal filed
to avoid sanctions for relief from the dismissal on account of fraudulent
conduct. In explaining its decision, the court noted that in that instance
"plaintiff had obtained the affirmative relief it sought, its actions
in the cause in the trial court may have been fraudulent on the court and
it certainly was within its inherent power (as an equity court) to protect
its integrity." 367 So. 2d at 1091. I do not read Select Builders to
explicitly hold that "affirmative relief" is required to
establish grounds under rule 1.540(b) for relief from a voluntary
dismissal done to prevent examination into an attempted fraud on the
court. XXX 5 |
[46] |
In U.S. Porcelain, Inc. v. Breton,
502 So. 2d 1379
(Fla. 4th DCA 1987), we tacitly recognized the Select Builders exception
but found it inapplicable where "[t]here are no findings nor
conclusions in this case of fraud, deception, irregularities, nor any
misleading of the court." 502 So. 2d at 1380. Our agreement with the
holding in Select Builders evinces no attempt to narrow the exception to
traditional common law fraud, indeed adding as other forms of fraudulent
conduct "deception, irregularities, []or any misleading of the
court." [e.s.] |
[47] |
The fact that the fraud exception applied in
Select Builders is now commonly recognized as valid under Miller v Fortune
Insurance is seen in the following exposition on the subject from the
standard Florida legal encyclopedia: |
[48] |
"In exercising its inherent power to
protect its integrity, the trial court is authorized to reinstate a matter
and retains jurisdiction over the cause, in order to prevent a fraud on
the court, where it appears the plaintiff has perpetrated fraud upon the
court to obtain a voluntary dismissal. The original jurisdiction over the
dismissed cause first acquired continues for the purpose of entertaining
and deciding all appropriate proceedings brought to reopen the case,
either by means of an independent equity suit directed against the
fraudulently induced order or judgment to have it set aside or by means of
a direct motion filed in the case itself praying that the order of
dismissal be vacated and the cause returned to the docket of pending
cases." |
[49] |
1 FLA.JUR.2D, Actions § 231 (citing Select
Builders); see also Roger A. Silver, The Inherent Power Of The Florida
Courts, 39 U. MIAMI L. REV. 257, 287 (1985) ("Florida courts
have...inherent power...to strike a voluntary dismissal" (citing
Select Builders)); Henry P. Trawick Jr., TRAWICK'S FLORIDA PRACTICE &
PROCEDURE § 21:2 (citing Select Builders); 25 TRIAL ADVOCATE QUARTERLY22,
23 (discussing Select Builders). All the texts base the court's authority
to grant relief on the inherent power of the judges to protect the
integrity of the court system in the litigation process. |
[50] |
In opposing defendant's motion for relief
under rule 1.540(b), BNY Mellon relies on Bevan v. D'Alessandro, 395 So.
2d 1285 (Fla. 2d DCA 1981). There the court recognized the fraud exception
to the voluntary dismissal rule but held it inapplicable where plaintiff
did not obtain any relief and the act of filing the voluntary dismissal
did not actually rise to the level of a fraud on the court. XXX
6 BNY Mellon argued that, similarly, it had obtained no
relief or benefit at that point in the action from the filing of the
revised assignment. In denying defendant's motion for relief under rule
1.540(b), the trial judge appeared to rely heavily on Bevan and that
argument of BNY Mellon. Curiously neither Bevan nor BNY Mellon makes any
attempt to argue why, as a matter of simple jurisprudence, courts should
be precluded from scrutinizing the use of a voluntary dismissal after an
unsuccessful attempt to deceive, mislead or defraud a court by producing
and filing spurious documents and instruments on which to base a claim in
suit. |
[51] |
It is apparent to me that BNY Mellon
actually did achieve some benefit by its dismissal. In voluntarily
dismissing the case at that point, it thereby avoided the scheduled
depositions of the persons who might have direct knowledge of an attempted
fraud on the court. In fact, it is fair to conclude that the only purpose
in dismissing was to shelter its agents from having to testify about the
questionable documents. It continued to use the voluntary dismissal to
stop the trial court from inquiring into the matter, arguing the absence
of jurisdiction to do so. To the extent that Miller v Fortune Insurance
can be read to require, as a precondition to relief under rule 1.540(b)
from a voluntary dismissal, that the false document benefited the filer in
some way, we conclude that any necessary benefit has been shown in this
case. |
[52] |
Nor do I find the recent decision in Service
Experts LLC v. Northside Air Conditioning & Electric Services, No.
2D09-5416, 2010 WL 4628567 (Fla. 2d DCA Nov. 17, 2010), apposite to the
issue in this case. There, plaintiff filed a voluntary dismissal of the
action "after almost two years of litigation, after [defendants]
served offers of judgment, after the close of discovery, and after
[defendants] moved for summary judgment." 2010 WL 4628567 at *1.
Defendants moved under rule 1.420 XXX 7 to
strike the voluntary dismissal, arguing that earlier in the case plaintiff
had filed "fraudulent affidavits." The trial court did not
determine whether a fraud on the court had occurred. Instead it found that
defendants had satisfied the common law exception to rule 1.420 allowing
for voluntary dismissals by showing they "acquired substantive rights
in the outcome of [the] matter by the filing of the motion for summary
judgment, by making offers of judgment and by setting forth convincing
allegations of fraud, all of which would be lost if the dismissal without
prejudice were allowed to stand." 2010 WL 4628567 at *1. Accordingly,
it gave the parties the option of going to trial or scheduling an
evidentiary hearing on whether there had actually been any fraud on the
court. Plaintiff thereupon appealed that order on the grounds that it
infringed its right of voluntary dismissal. Because Service Experts is
obviously based solely on rule 1.420, rather than on a showing of fraud
for relief under rule 1.540(b), it is not dispositive of the issue
presented in this case. |
[53] |
But, in any event, I disagree with Select
Builders, Bevan and Service Experts to the extent of any holding that
affirmative relief or even some other benefit is necessary for relief from
a voluntary dismissal filed after an attempted fraud on the court has been
appropriately raised. Nothing in the logic of Miller v. Fortune Insurance
allowing rule 1.540(b) to be used to avoid a voluntary dismissal on the
grounds of fraud requires that such fraud must actually achieve its
purpose. The purpose served by punishing a fraud on a court does not lie
in an indispensable precondition of detrimental reliance -- i.e., in
successfully deceiving a court into an outcome directly resulting from
fraud -- but in the mere effort itself to try to use false and fraudulent
evidence in a court proceeding. XXX 8 As with
criminal law, where the failed attempt itself is an offense punished by
law,XXX 9 the power of courts to grant relief
from presenting false or fraudulent evidence and imposing sanctions is not
confined solely to instances when fraud directly results in an unjust,
erroneous judgment. |
[54] |
Indeed there are a number of reported
decisions by Florida courts imposing sanctions on a party presenting false
or fraudulent evidence without any affirmative relief or a final
determination on the merits. See, e.g., Ramey v. Haverty Furn. Co., 993
So. 2d 1014, 1019 (Fla. 2d DCA 2008) (upholding sanction of dismissal for
misrepresentations in discovery about prior medical treatment
"directly related to the central issue in the case"); McKnight
v. Evancheck, 907 So. 2d 699, 700 (Fla. 4th DCA 2005) (affirming dismissal
for fraud on the court where trial court found plaintiff "lied about
his extensive medical history, which had a direct bearing on his claim for
damages"); Morgan v. Campbell, 816 So. 2d 251, 253 (Fla. 2d DCA 2002)
(false testimony in discovery "directly related to the central issue
in the case"). We are hard pressed to distinguish in substance the
imposition of sanctions in those cases from the one at hand. |
[55] |
One federal appellate decision makes the
point well. In Aoude v. Mobil Oil Corp., 892 F.2d 1115 (1st Cir.1989), the
plaintiff filed a complaint based upon a bogus contract and attached that
bogus document to its complaint. When the defendant became aware of the
falsity of the contract sued upon, it moved to dismiss the case for the
attempted fraud on court. The trial court granted the motion. When
plaintiff later refiled its claim and attached the real contract,
defendant again moved to dismiss, arguing that the dismissal of the first
case barred the claim permanently. The trial court again granted the
motion. The court of appeals affirmed both holdings. In an appeal
plaintiff argued that the attempted fraud arising from the use of the
bogus agreement had no effect ultimately on defendant's ability to
litigate the case or on the court's ability to make a just decision on the
merits. The court rejected the argument on appeal that the attempt to
defraud the court had failed and thus could escape punishment, responding: |
[56] |
"The failure of a party's corrupt plan
does not immunize the defrauder from the consequences of his misconduct.
When [plaintiff] concocted the agreement, and thereafter when he and his
counsel annexed it to the complaint, they plainly thought it material.
That being so, '[t]hey are in no position now to dispute its
effectiveness.' " |
[57] |
892 F.2d at 1120. |
[58] |
So, too, BNY Mellon's attempt to allege and
file the assignment of the mortgage was undeniably based on a belief in
the necessity for -- and the materiality of -- a valid assignment of
mortgage. Defendant's colorable showing of possible fraud in the making
and filing of the assignment led to the scheduling of the depositions of
those involved in making the document and the notice of depositions led
directly to the voluntary dismissal to avoid such scrutiny for an
attempted fraud. As Aoude forcefully makes clear, a party should not
escape responsibility and appropriate sanctions for unsuccessfully
attempting to defraud a court by purposefully evading the issue through a
voluntary dismissal. |
[59] |
This issue is one of unusual prominence and
importance. Recently, the Supreme Court promulgated changes to a rule of
procedure made necessary by the current wave of mortgage foreclosure
litigation. See In re Amendments to Rules of Civil Procedure, 44 So. 3d
555 (Fla. 2010). In approving one amendment, the court pointedly
explained: |
[60] |
"[R]ule 1.110(b) is amended to require
verification of mortgage foreclosure complaints involving residential real
property. The primary purposes of this amendment are (1) to provide
incentive for the plaintiff to appropriately investigate and verify its
ownership of the note or right to enforce the note and ensure that the
allegations in the complaint are accurate; (2) to conserve judicial
resources that are currently being wasted on inappropriately pleaded 'lost
note' counts and inconsistent allegations; (3) to prevent the wasting of
judicial resources and harm to defendants resulting from suits brought by
plaintiffs not entitled to enforce the note; and (4) to give trial courts
greater authority to sanction plaintiffs who make false allegations."
[e.s.] |
[61] |
44 So. 3d at 556. I think this rule change
adds significant authority for the court system to take appropriate action
when there has been, as here, a colorable showing of false or fraudulent
evidence. We read this rule change as an important refutation of BNY
Mellon's lack of jurisdiction argument to avoid dealing with the issue
founded on inapt procedural arcana. |
[62] |
Decision-making in our courts depends on
genuine, reliable evidence. The system cannot tolerate even an attempted
use of fraudulent documents and false evidence in our courts. The judicial
branch long ago recognized its responsibility to deal with, and punish,
the attempted use of false and fraudulent evidence. When such an attempt
has been colorably raised by a party, courts must be most vigilant to
address the issue and pursue it to a resolution. |
[63] |
I would hold that the trial judge had the
jurisdiction and authority to consider the motion under rule 1.540(b) on
its merits and -- should the court find that a party filed a false and
fraudulent document in support of its claim -- to take appropriate action,
including (without limitation) the striking of a voluntary dismissal filed
in aid of such conduct. |
|
|
|
Opinion Footnotes |
|
|
[64] |
XXX 1See §
673.2011(2), Fla. Stat. (2010) (if instrument is payable to an identified
person "negotiation requires transfer of possession of the
instrument" and endorsement by holder). |
[65] |
XXX 2 Notably,
appellee's attorneys on appeal, Akerman Senterfitt, were not involved in
the proceedings giving rise to the allegations of misrepresentation and
fraud upon the court. |
[66] |
XXX 3
This dissent was actually written by Judge Gary M. Farmer, who retired
from this court December 31, 2010. As Judge Farmer can no longer
participate in this matter, and since I concurred with his proposed
dissent, I now adopt in total his writing. Although I thoroughly agree
with this dissent, I want the record to reflect that the words are those
of Judge Farmer. |
[67] |
XXX 4
484 So.2d at 1224 (citing Shampaine Indus. v. S. Broward Hosp. Dist., 411
So. 2d 364 (Fla. 4th DCA 1982)). |
[68] |
XXX 5 See
also Romar Int'l v. Jim Rathman Chevrolet/Cadillac, Inc., 420
So. 2d 346, 347 (Fla. 5th DCA 1982) (recognizing "narrow
exception exists where a fraud on the court is attempted [e.s.] by the
filing of the voluntary dismissal"). |
[69] |
XXX 6
We note that Bevan was decided several years before the supreme court
decided Miller v. Fortune Insurance. |
[70] |
XXX 7
Defendants said that their motion to strike the notice of voluntary
dismissal was not made under rule 1.540 because that rule applies to final
judgments, decrees, orders, or proceedings, and the voluntary dismissal
they sought to set aside was not a final judgment, decree, or order. The
Second District agreed with that "procedural assessment." |
[71] |
XXX 8
See Lance v. Wade, 457 So. 2d 1008, 1011 (Fla. 1984) (common law fraud
requires showing that defendant deliberately and knowingly made false
representation actually causing detrimental reliance by the plaintiff);
see also Palmas y Bambu, S.A. v. E.I. DuPont de Nemours & Co., 881 So.
2d 565, 573 (Fla. 3d DCA 2004) (when fraudulent misrepresentation is
alleged direct causation can be proved only by establishing detrimental
reliance). |
[72] |
XXX 9 See §
777.04(1), Fla. Stat. (2010) (criminalizing and punishing attempts to
commit an offense prohibited by law even though the accused fails in the
perpetration or is intercepted or prevented in the execution thereof); see
also § 817.54 Fla. Stat. (2010) (third degree felony to -- with intent to
defraud -- "obtain[] the signature of any person to any mortgage,
mortgage note, promissory note or other instrument evidencing a debt by
color or aid of fraudulent or false representation or pretenses, or
obtain[] the signature of any person to a mortgage, mortgage note,
promissory note, or other instrument evidencing a debt, the false making
whereof would be punishable as forgery"). |
|