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HSBC BANK USA, NATIONAL ASSOC., ETC. v. JULIO R. SANCHEZ a/k/a JULIO RAMIREZ SANCHEZ, GINA CARVALLO
Citation: 245 So. 3d 784Docket: 17-1085
Court: District Court of Appeal of Florida; April 25, 2018; Florida; State Appellate Court
Original Court Document: View Document
HSBC Bank USA, as trustee for the Luminent Mortgage Trust 2007-2, appealed a circuit court decision that dismissed its second foreclosure lawsuit against borrowers Julio R. Sanchez and Gina Carvallo. The trial court ruled that the Bank's complaint failed to state a cause of action because the alleged default occurred during the pendency of a prior foreclosure action. The first foreclosure suit was initiated in 2009 and concluded with a judgment in favor of the borrowers in 2014. The second suit, filed in 2015, claimed the borrowers defaulted on payments due from May 1, 2011, onward. The appellate court found that the trial court misinterpreted the precedent set in Bartram v. U.S. Bank Nat’l Ass’n, which established that a lender could pursue subsequent foreclosure actions based on payment defaults occurring after the dismissal of an earlier action. The court clarified that the issue in Bartram was about the lender’s ability to enforce rights under a mortgage after a dismissal and that subsequent defaults create new causes of action. The appellate court concluded that HSBC Bank did state a valid cause of action for foreclosure, given that it alleged a continuing series of payment defaults, both during and after the first action. Therefore, the appellate court reversed the dismissal and remanded the case for judgment in favor of the Bank and further proceedings consistent with its opinion. The ruling was not final until any timely filed motions for rehearing were determined.