ANGELA L. DAWSON and ANGELA L. DAWSON, P.A. v. ANTONIO HERNANDEZ ( 2020 )


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  •           DISTRICT COURT OF APPEAL OF THE STATE OF FLORIDA
    FOURTH DISTRICT
    ANGELA L. DAWSON and ANGELA L. DAWSON, P.A.,
    Appellant,
    v.
    ANTONIO HERNANDEZ,
    Appellee.
    No. 4D18-1588
    [March 11, 2020]
    Appeal from the Circuit Court for the Seventeenth Judicial Circuit,
    Broward County; Michael L. Gates, Judge; L.T. Case No. CACE 14-024425
    (21).
    Michael Hursey, Fort Lauderdale, for appellant.
    Kenzie N. Sadlak of Kenzie N. Sadlak, PA, Miami, for appellee.
    MAY, J.
    We are called upon to enforce the rules of civil procedure and to give
    meaning to the word “redemption.” The borrower appeals a second
    amended final judgment in a foreclosure action. The threshold issue is
    whether the trial court could twice amend the final foreclosure judgment
    to increase the redemption amount to include appellate and post-
    judgment attorney’s fees and costs after the borrower redeemed the
    property. 1 The answer is “no.” We reverse.
    The lender filed an action to foreclose a mortgage on commercial
    property. It then moved for summary judgment, which the trial court
    granted. The court entered a final judgment.
    The borrower appealed. We dismissed the appeal as untimely, but
    conditionally granted attorney’s fees to the lender. After the dismissal, but
    before the sale date, the borrower paid the total amount reflected in the
    1There are two appellants. The P.A. is the borrower; the individual personally
    guaranteed the loan. We refer to them as the borrower for ease of reference.
    final judgment to the Clerk of Court. The clerk then issued a satisfaction
    of judgment.
    Later that same day, the lender moved for post-judgment and appellate
    attorney’s fees. He also moved to vacate the satisfaction of judgment,
    disburse the court funds, and amend the original final judgment to
    increase the redemption amount to include the appellate attorney’s fees,
    pursuant to Florida Rule of Civil Procedure 1.525.
    The trial court granted the lender’s motions, vacated the satisfaction of
    judgment, and disbursed the court registry funds. The court then entered
    an amended final judgment, which included the amount of the original
    judgment and the subsequently awarded appellate attorney’s fees.
    Among other motions, the borrower moved for reconsideration and/or
    rehearing of the amended final judgment and order vacating the
    satisfaction of judgment. The trial court denied the borrower’s motions.
    The borrower then moved to set aside the court’s order denying its motion
    for reconsideration/rehearing and the amended final judgment.
    In the interim, the borrower filed several motions and requests for
    hearing, including a motion to cancel the foreclosure sale because the
    judge presiding over the case resigned. The court canceled the foreclosure
    sale.
    The lender petitioned for a writ of certiorari and prohibition seeking to
    quash the trial court’s order canceling the sale and to prohibit the trial
    court from considering the borrower’s motion to set aside. We denied the
    petition without prejudice to the lender’s ability to seek an increase of the
    redemption amount based on the “properly entered amended final
    judgment,” citing Verneret v. Foreclosure Advisors, LLC, 
    45 So. 3d 889
    , 892
    (Fla. 3d DCA 2010), and Parsons v. Whitaker Plumbing of Boca Raton, Inc.,
    
    751 So. 2d 655
    , 657 (Fla. 4th DCA 1999). The trial court denied the
    borrower’s motion to set aside the order and amended final judgment.
    The lender then moved for post-judgment attorney’s fees and costs. It
    argued that it incurred additional attorney’s fees and costs because of the
    borrower’s multiple post-judgment motions and hearings. The lender
    argued that it was entitled to seek a second amended final judgment with
    an increased redemption amount that included the additional attorney’s
    fees, plus interest, pursuant to our order dismissing the lender’s petition.
    The trial court entered a second amended final judgment and again
    increased the redemption amount to include the lender’s additional
    2
    attorney’s fees, interest, and costs. It did so without a hearing.
    The borrower filed a renewed motion for reconsideration and/or
    rehearing of the amended final judgment, the order vacating the
    satisfaction of judgment, and the second amended final judgment. The
    court denied the renewed motion. The borrower now appeals.
    Jurisdiction
    The lender argues we lack subject matter jurisdiction to review the
    order because the appeal is untimely. We disagree.
    “An order is rendered when a signed, written order is filed with the clerk
    of the lower tribunal.” Fla. R. App. P. 9.020(h). However, a timely and
    authorized motion for rehearing tolls rendition of a final order “until the
    filing with the clerk of a signed, written order disposing of the last of such
    motions.” Fla. R. App. P. 9.020(h)(1)(B), (h)(2)(A). An order is final and
    ripe for appeal when it completes the judicial labor of the lower tribunal.
    Caufield v. Cantele, 
    837 So. 2d 371
    , 375 (Fla. 2002).
    Here, the amended final judgment materially changed the original final
    judgment by increasing the redemption amount. The second amended
    final judgment once again increased the redemption amount. The
    borrower’s motions for reconsideration and rehearing were authorized
    under the Florida Rules of Civil Procedure. The appeal is timely. We have
    jurisdiction. 2 See Caldwell v. Wal-Mart Stores, Inc., 
    980 So. 2d 1226
    , 1229
    (Fla. 1st DCA 2008) (“[A] party may appeal an amended judgment that
    makes a material change in the original judgment, [although] the appeal
    is limited to the amended portions of the judgment and does not call up
    for review errors in the original.”).
    On the Merits
    The borrower argues the trial court erred when it vacated the
    satisfaction of judgment. The borrower contends that because it complied
    with the statutory requirements for redemption, Sedra Family Ltd. P’ship
    v. 4750, LLC, 
    124 So. 3d 935
    (Fla. 4th DCA 2012), is controlling.
    2 The borrower argues the trial court erred in granting the lender’s original motion
    for summary judgment without a hearing. We are without jurisdiction to review
    issues related to the original final judgment because that appeal was dismissed
    as untimely. See Denny v. Denny, 
    334 So. 2d 300
    , 302 (Fla. 1st DCA 1976).
    3
    The lender responds that: 1) Florida law provides for attorney’s fees to
    be included in a judgment for purposes of redemption; 2) the satisfaction
    of judgment was erroneous because it was entered pursuant to the wrong
    Florida Statute—section 55.141 instead of section 45.0315; 3) the trial
    court had discretion to enter an amended final judgment for additional
    attorney’s fees; and 4) the borrower’s argument is moot because we
    previously deemed the amended final judgment “to be proper.”
    We review a trial court’s amendment of a final judgment for an abuse
    of discretion. See Baker v. Courts at Bayshore I Condo. Ass’n, 
    279 So. 3d 799
    , 801 (Fla. 3d DCA 2019).
    •   The Rules of Civil Procedure
    While a trial court has the authority to enforce its judgment, it does not
    have the power “absent an appropriate motion under Florida Rules of Civil
    Procedure 1.530 or 1.540 to modify a judgment once it becomes final.”
    Vargas v. Deutsche Bank Nat’l Trust Co., 
    104 So. 3d 1156
    (Fla. 3d DCA
    2012). Here, the trial court amended the final judgment without a motion
    under Florida Rule of Civil Procedure 1.530 or 1.540. Instead, the lender
    moved to amend the final judgment (twice) under Florida Rule of Civil
    Procedure 1.525.
    Florida Rule of Civil Procedure 1.530(g) provides: “A motion to alter or
    amend the judgment shall be served not later than 15 days after entry of
    the judgment, except that this rule does not affect the remedies in rule
    1.540(b).” Florida Rule of Civil Procedure 1.540 then provides several
    bases for amending a judgment:          clerical mistakes, inadvertence,
    excusable neglect, newly discovered evidence, and fraud. 3 Florida Rule of
    Civil Procedure 1.525 however addresses only costs and attorney’s fees. 4
    Because the trial court granted the motions and twice amended the
    3 The lender also argues that the satisfaction of judgment was properly vacated
    because it was satisfied pursuant to the wrong statutory section. Although
    Florida Rule of Civil Procedure 1.540 specifically provides for relief from such
    error, the lender failed to move to vacate the satisfaction on these grounds.
    Without a proper motion, the trial court lacked the authority to vacate the
    satisfaction of judgment. The lender is “therefore, entitled to no relief below and
    is entitled to no relief here.” 
    Vargas, 104 So. 3d at 1166
    .
    4“Any party seeking a judgment taxing costs, attorneys’ fees, or both shall serve
    a motion no later than 30 days after filing of the judgment, including a judgment
    of dismissal, or the service of a notice of voluntary dismissal, which judgment or
    notice concludes the action as to that party.” Fla. R. Civ. P. 1.525.
    4
    final judgment without a motion under Florida Rule of Civil Procedure
    1.530 and 1.540, the amended and second amended judgments must be
    reversed for lack of jurisdiction. See Frumkes v. Frumkes, 
    328 So. 2d 34
    ,
    35 (Fla. 3d DCA 1976) (reversing award of attorneys’ fees because the trial
    court was without jurisdiction to modify the final judgment without
    authorization from a rule or statute).
    •   Redemption
    The amended and second amended final judgment were also entered in
    error because the borrower exercised the statutory right to redemption
    before the lender moved for post-judgment appellate attorney’s fees and
    costs and to amend the final judgment. The lender responds that the trial
    court correctly amended the final judgment because: 1) section 45.0315,
    Florida Statutes, provides for attorneys’ fees to be included in a judgment
    subject to redemption; and 2) our order denying the lender’s petition for
    writ of certiorari and prohibition indicated the amended final judgment
    was properly entered. 5
    Here, the borrower properly redeemed the property under Florida law.
    Section 45.0315 (2015), Florida Statutes, provides:
    Right of redemption. At any time before the later of the filing
    of a certificate of sale by the clerk of the court or the time
    specified in the judgment, order, or decree of foreclosure, the
    mortgagor or the holder of any subordinate interest may cure
    the mortgagor’s indebtedness and prevent a foreclosure sale
    by paying the amount of moneys specified in the judgment,
    order, or decree of foreclosure, or if no judgment, order, or
    decree of foreclosure has been rendered, by tendering the
    performance due under the security agreement, including any
    amounts due because of the exercise of a right to accelerate,
    plus the reasonable expenses of proceeding to foreclosure
    5 Our order denied the petition “without prejudice to [the lender’s] ability to seek
    an increase of the redemption amount based on the properly entered amended
    final judgment.” Hernandez v. Dawson, Case No. 4D16-3896 (citations omitted).
    The order should not be misunderstood to have put our stamp of imprimatur
    on the amended final judgment, nor be interpreted to allow what happened here.
    The cases relied on by the lender simply do not support its position. See, e.g.,
    Parsons, 
    751 So. 2d 655
    (borrower’s exercise of redemption rights on the first
    foreclosure judgment “did not preclude the court from entering the second
    judgment.”).
    5
    incurred to the time of tender, including reasonable attorney’s
    fees of the creditor. Otherwise, there is no right of redemption.
    The lender argues this language provides for the inclusion of reasonable
    attorney’s fees “incurred to the time of tender.” § 45.0315, Fla. Stat. The
    lender’s interpretation is correct. However, the borrower tendered the
    money prior to the award of attorney’s fees. Neither the statute, nor our
    precedent requires attorney’s fees to be paid to redeem the property. See
    Sedra Family Ltd. 
    P’ship, 124 So. 3d at 936
    (holding that redemption rights
    are not thwarted by failure to pay attorney’s fees, because “[r]egardless of
    any demands . . . for attorney’s fees or other amounts, appellants could
    have redeemed by paying the amount of the final judgment.”).
    Here, the borrower paid the Clerk of Court the full amount of the
    existing final judgment before fees and costs were awarded. As such, the
    borrower redeemed its property for the full amount contained in the
    original final judgment. While the goal of foreclosure is to ensure that the
    mortgage holder’s lien is repaid, including attorney’s fees, no case prevents
    the borrower from redeeming its property prior to an award of attorney’s
    fees. 6 The borrower is still liable for attorney’s fees and costs awarded
    subsequently in a separate or supplemental judgment.
    Because the trial court erred in twice amending the final judgment after
    the borrower redeemed the property, it goes without saying that it also
    erred in denying the borrower’s renewed motion for reconsideration and
    rehearing. This error was compounded by the court’s failure to hold an
    evidentiary hearing on the attorney’s fees issue. United Bonding Ins. Co.
    of Indianapolis, Ind. v. Presidential Ins. Co., 
    155 So. 2d 635
    , 637 (Fla. 2d
    DCA 1963) (holding that counsel’s testimony alone is insufficient to award
    attorney’s fees). Similarly, “[t]o award costs in the absence of a written
    motion and evidence and without giving the opposing party the
    opportunity to be heard on the issue violates procedural due process.”
    Med. Specialists of Tampa Bay, LLC v. Kelly, 
    162 So. 3d 1053
    , 1054–55
    (Fla. 2d DCA 2015).
    Here, the trial court failed to hold an evidentiary hearing on the amount
    of fees before it increased the redemption amount in the amended and
    6 The lender also argues that the borrower is barred from challenging the
    amended and second amended final judgment based on the law of the case
    doctrine. But, that doctrine does not apply to arguments that were not at issue
    in the prior proceeding. See McKenzie Check Advance of Fla., LLC v. Betts, 
    191 So. 3d 530
    , 534 (Fla. 4th DCA 2016).
    6
    second amended final judgment. It also erred in relying solely on the
    lender’s affidavit to determine the amount of reasonable fees. United
    Bonding Ins. Co. of Indianapolis, 
    Ind., 155 So. 2d at 637
    .
    We reverse the amended final judgment, the second amended final
    judgment, and the order vacating the satisfaction of judgment. We remand
    the case to the trial court to reinstate the satisfaction of judgment and
    enter supplemental judgment(s) for attorney’s fees and costs.
    Reversed and Remanded.
    LEVINE, C.J., and GERBER, J., concur.
    *        *        *
    Not final until disposition of timely filed motion for rehearing.
    7