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Schwades v. America's Wholesale Lender

Citations: 146 So. 3d 150; 2014 Fla. App. LEXIS 13739; 2014 WL 4374891Docket: No. 5D13-3518

Court: District Court of Appeal of Florida; September 5, 2014; Florida; State Appellate Court

Narrative Opinion Summary

In the appellate proceedings, the appellants withdrew their appeal after challenging a trial court decision that dismissed their quiet title action, asserting that the appellee banks had waived their rights by failing to respond to a demand for proof of debt. The appellate court found this argument to be frivolous, similar to prior cases involving the appellants' attorney, who has a history of sanctionable conduct in federal courts. The appellants also claimed a reversible error for being denied the opportunity to amend their complaint, although they never formally sought such leave. Furthermore, inconsistencies were noted in their legal strategy concerning claims against a specific lender, which they had previously agreed to dismiss with prejudice. The court determined that the attorney acted in bad faith, lacking factual support for the claims, and ordered the appellants and their attorney to pay attorney's fees incurred by the appellees, with the matter remanded for fee assessment. The decision also included forwarding the attorney's conduct to the Florida Bar for further review, highlighting concerns over repeated frivolous litigation practices.

Legal Issues Addressed

Appellate Sanctions for Frivolous Appeals

Application: The court justified awarding appellate attorney's fees as a sanction due to the frivolous nature of the appeal, which mirrored previous sanctionable actions by the appellants' attorney.

Reasoning: The court remanded the case to the trial court, determining that appellate attorney's fees as a sanction were justified.

Bad Faith Conduct and Sanctions

Application: The court found the attorney acted in bad faith by presenting claims without factual support, warranting sanctions and referral to the state bar for review.

Reasoning: The court ruled that Bosecker acted in bad faith, as she should have recognized the lack of factual support for the claims from the outset.

Inconsistency in Legal Claims

Application: The appellants showed inconsistency by initially pursuing claims against a lender, yet expressing willingness to dismiss these claims with prejudice, highlighting a lack of sincerity in their legal strategy.

Reasoning: Additionally, although the appellants made claims against America’s Wholesale Lender, Bosecker had previously indicated a willingness to dismiss these claims with prejudice, demonstrating inconsistency in her position.

Procedural Requirements for Amending Complaints

Application: The appellants' claim of reversible error for not being allowed to amend their complaint was invalidated due to their failure to request leave to amend.

Reasoning: The appellants claimed reversible error for not being allowed to amend their complaint, but the record showed they never requested this leave.

Waiver of Rights by Non-Response to Demand for Proof of Debt

Application: The appellants contended that the appellee banks waived their rights by not responding to a proof of debt demand; however, this argument was rejected as frivolous.

Reasoning: The appellants' argument centered on an alleged error by the trial court in dismissing their quiet title action, which claimed that the appellee banks waived rights to a note and mortgage by not responding to a demand for proof of debt.