HSBC BANK USA, N.A., APPELLANT,
v.
BISCAYNE POINT CONDOMINIUM ASSOCIATION, APPELLEE
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HSBC Bank USA appeals a circuit court's denial of its motion to vacate a default judgment, arguing the judgment was void and entered without personal jurisdiction. The Third District Court of Appeal reverses the judgment and remands, finding the Association's legal position indefensible and considering sanctions for frivolous proceedings.
The default judgment is vacated and the case is remanded. The court found the Association's position indefensible both below and on appeal, with no chance of victory, and the judgment must be set aside.
[1] A default judgment may be vacated as void for lack of personal jurisdiction.
[2] An appellee may be sanctioned for frivolous legal proceedings and an indefensible position with no chance of victory.
Previewing 2 of 5 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“although "not shielded as a matter of law from the imposition of sanctions," an appellee should only be sanctioned in "rare circumstances."”
Establishes the legal standard for imposing sanctions against an appellee, requiring rare circumstances with an indefensible position and no chance of victory.
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Join FLexlaw to unlock all legal intelligenceHSBC held a purchase-money mortgage recorded in 2006. The Biscayne Point Condominium Association had a junior lien for unpaid condominium assessments.…
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HSBC Bank USA, N.A., as Trustee (“HSBC”), appeals a circuit court order denying its motion to vacate a default judgment as void and for lack of personal jurisdiction as to HSBC. The appellee, Biscayne Point Condominium Association (“Association”), has not appeared through counsel in this case, has not filed an answer brief, and has not filed a memorandum of points and authorities in support of its position in this appeal.1 The end result of the frivolous legal proceedings2 below and here is a waste of time and judicial resources.
. On the Court’s own motion, the Association is directed to show cause, within thirty days from the issuance of this opinion, why HSBC’s appellate attorney’s fees and costs should not be assessed against the Association as a sanction pursuant to Florida Rule of Appellate Procedure 9.410 and section-57.105, Florida Statutes (2014). The Clerk is directed to serve a copy of this opinion by email upon the Association’s counsel designated on the notice of appeal, and on the Association via the U.S. Postal Service at: Silvio Fuentes, President, Biscayne Point Condominium Association, Inc., 12105 N.E. 11th Place, Miami, Florida 33161.
Within that same period of thirty days, counsel for the appellant shall file a brief *607memorandum indicating whether-HSBC.or its counsel communicated with the Association’s circuit court counsel or the Association in an effort to procure a concession of error before the filing of the initial brief in this appeal. •
The Supreme Court of Florida has held that, although “not shielded as a matter of law from the imposition of sanctions,” an appellee should only be sanctioned in “rare circumstances.” Boca Burger, Inc. v. Forum, 912 So.2d 561, 570 (Fla.2005). This proceeding smacks of just such a set of circumstances:' an “indefensible”. position below and on appeal, “where there is no chance of victory.” Id. Nonetheless, we will consider the parties’ responses before ruling on the issue.
We do not address here the method or manner by which the Association’s counsel in the -circuit court apparently led one of our “[b]usy judges!,] managing overloaded motion calendars,” into error, but we remind counsel of their ethical .obligations of complete candor to their client as well as the circuit judge. Id. The order below is reversed, and the case is remanded to the trial judge with directions to vacate the final default judgment. U.S. Bank Nat’l Ass’n v. Proenza, 157 So.3d 1075 (Fla. 3d DCA 2015). We retain jurisdiction for the limited purpose of considering sanctions following our review of the Association’s response, if any, to this opinion’s, directive to show cause.
Reversed and remanded.
Cases With Similar Vibessemantic neighbors from the corpus
Citator
Authorities Cited
- Boca Burger, Inc. v. Forum, 912 So. 2d 561 (Fla. 2005)
- U.S. Bank Nat'l Ass'n v. Proenza, 157 So. 3d 1075 (Fla. 3d DCA 2015)