In Gallimore v. Bank of America, No. 4D13-3269 (Fla. 4th DCA Feb. 17, 2016), the Fourth District Court of Appeal reversed a final judgment of foreclosure, finding that the bank failed to prove it had standing at the time suit was filed.
To prove standing where a note does not name the initial payee as plaintiff, the evidence must show that, at the time the suit was filed, the note bore a special indorsement in favor of the initial plaintiff, a blank indorsement, or a transfer of the note in compliance with the Uniform Commercial Code that entitles the initial plaintiff to an indorsement. The evidence must also show that the initial plaintiff had possession of the note at the time the lawsuit was filed.
In Gallimore, a copy of the note attached to the complaint contained no indorsements or alones. An undated blank indorsement was later produced, but there was no testimony or other evidence to show that the undated indorsement was placed on the note prior to the filing of the complaint. The Fourth DCA therefore remanded with instructions to enter an order granting the homeowner’s motion for involuntary dismissal.
Donna Greenspan Solomon, Esq., handles business-related appeals, mediation, and arbitration. Donna also co-counsels and serves as freelance business litigator for those wishing to expand the bench strength of their practices. Donna is one of only two attorneys certified by The Florida Bar as both Appellate Specialist and Business Litigator. Donna is a Member of the AAA’s Roster of Arbitrators (Commercial Panel). She is a FINRA-Approved and Florida Supreme Court Qualified Arbitrator. She is also a Certified Circuit, Appellate, and Family Mediator. For more information, call Donna at (561) 910-0054, email Donna@SolomonAppeals.com, or visit http://www.solomonappeals.com.