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City of Palm Bay v. Wells Fargo Bank, N.A.
Citations: 57 So. 3d 226; 2011 Fla. App. LEXIS 241; 2011 WL 180363Docket: No. 5D09-1810
Court: District Court of Appeal of Florida; January 20, 2011; Florida; State Appellate Court
The appeal concerns whether the City of Palm Bay can prioritize its code enforcement liens over a previously recorded mortgage, specifically that of Wells Fargo. The court concludes that Palm Bay cannot grant such superpriority because its ordinance conflicts with Florida Statute section 695.11. In 1997, Palm Bay enacted ordinance 97-07 to establish a code enforcement board, modifying procedures from Chapter 162, Florida Statutes. This ordinance asserts that its code enforcement liens, once recorded, are superior to other liens. In 2007, Wells Fargo initiated foreclosure on a mortgage recorded in 2004, with Palm Bay named as a defendant due to two subsequently recorded code enforcement liens. Palm Bay claimed its liens had priority under ordinance 97-07. However, the trial court denied this claim, citing the legislative intent that code enforcement liens do not have priority over prior recorded mortgages, adhering to the common law principle of "first in time, first in right." Palm Bay argued it had the authority, under home rule powers, to enact ordinance 97-07 without conflicting with state statutes. However, the court found that while municipalities have broad home rule powers, these powers cannot supersede state law. Section 695.11 establishes that recorded instruments with lower official numbers have priority, thereby codifying the first in time rule, which Palm Bay’s ordinance contradicts by attempting to prioritize its liens over earlier mortgages. Ultimately, the court affirmed the trial court's summary judgment in favor of Wells Fargo, reinforcing that ordinance 97-07 is invalid as it conflicts with state statute.