Stephen v. Schmidt, a Single Man and Schmidt Farms, Inc. v. Jjjtb, Inc.
CourtDistrict Court of Appeal of Florida
Date FiledFebruary 8, 2023
Docket2D21-2752
StatusPublished
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Full Opinion
DISTRICT COURT OF APPEAL OF FLORIDA
SECOND DISTRICT
STEPHEN V. SCHMIDT and SCHMIDT FARMS, INC.,
Appellants,
v.
JJJTB, INC.,
Appellee.
Nos. 2D21-1213, 2D21-2752
CONSOLIDATED
February 8, 2023
Appeal from the Circuit Court for Hillsborough County; Emily A.
Peacock, Judge.
Jesse L. Ray of Jesse Lee Ray Attorney at Law, P.A.; and Edward William
Collins of The Law Office of William Collins, P.A., Tampa, for Appellants.
John L. Marchione and Kristen M.J. Johnson of Taylor Johnson, PL,
Winter Haven, for Appellee.
LaROSE, Judge.
In this consolidated appeal, Stephen Schmidt and Schmidt Farms,
Inc. (collectively, Schmidt), appeal a final foreclosure judgment and an
attorneys' fee order entered in favor of JJJTB, Inc. We have jurisdiction.
See Fla. R. App. P. 9.030(b)(1)(A).
Because the trial court lacked case jurisdiction, we reverse both
orders on appeal. We certify conflict with the Fourth District on whether
a party may waive case jurisdiction.
I. Background
JJJTB filed a foreclosure action against Schmidt in Hillsborough
County in April 2011. The trial court found that the underlying
promissory notes and mortgages were valid and enforceable. But, the
trial court also found that JJJTB failed to prove that Schmidt had
defaulted. Upon JJJTB's motion for entry of a final judgment, the trial
court entered a written order denying a foreclosure judgment in July
2015. JJJTB appealed. We per curiam affirmed that final order. JJJTB,
Inc. v. Schmidt, 197 So. 3d 50 (Fla. 2d DCA 2016).
In December 2016, JJJTB filed a new action against Schmidt on
the promissory note in Polk County, based on alleged 2015 and 2016
payment defaults. The trial court entered a summary judgment against
JJJTB in October 2018 because the statute of limitations barred the note
claim.
Thereafter, and over two years after issuance of our mandate in the
Hillsborough County case, JJJTB sought leave to amend its Hillsborough
County foreclosure complaint to allege a cause of action on the
promissory note and add a cause of action for new and separate
defaults.1 JJJTB stated:
In light of the Polk County Court's holding that the statute of
limitations would bar a new action on the Note in Polk
County, it is necessary for the Plaintiff to amend its
Complaint on the Note and Mortgage in Hillsborough County
to account for these new and continuing defaults.
1 It is unclear from the record whether JJJTB paid any court fees or
costs when filing the amended complaint. See ยง 28.241(1)(a)2, Fla. Stat.
(2018) (filing fees).
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Schmidt moved to dismiss the amended complaint. JJJTB countered
that the original foreclosure action "remained open and pending before
[the trial court]," and that the amended complaint related back to the
original complaint. JJJTB argued that it was entitled to foreclose on the
mortgage "[w]hether [JJJTB] [was] permitted to proceed with the
mortgage foreclosure in its First Amended Complaint, or whether it [was]
required to bring a separate case."
The trial court dismissed the claim on the note and permitted the
amended complaint. Ultimately, it entered a foreclosure judgment
against Schmidt. JJJTB requested attorneys' fees under the mortgage.
Schmidt moved for rehearing based, in part, on the trial court's lack of
jurisdiction. The trial court denied Schmidt's rehearing motion but
awarded JJJTB attorneys' fees and costs.
II. Discussion
A. Jurisdiction
Because of our affirmance of the July 2015 final order in the
Hillsborough County case, Schmidt argues that the trial court lacked
subject matter jurisdiction or other legal authority to proceed on JJJTB's
amended complaint. JJJTB contends that the trial court had subject
matter jurisdiction. It also maintains that Schmidt waived any objection
to case jurisdiction2 by participating in the proceedings and failing to
raise a jurisdictional challenge until filing a rehearing motion.
Our cases dictate that a party cannot waive a challenge to subject
matter or case jurisdiction. See Pulte v. New Common Sch. Found., 334
So. 3d 677, 680 (Fla. 2d DCA 2022) (providing that "our precedent
dictates that" a party cannot waive a subject matter or case jurisdictional
2 Case jurisdiction is also referred to as procedural jurisdiction and
continuing jurisdiction. Renovaship, Inc. v. Quatremain, 208 So. 3d 280,
283 n.6 (Fla. 3d DCA 2016).
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challenge by failing to raise it below), review dismissed, No. SC22-415,
2022 WL 2663058, at *1 (Fla. July 11, 2022); cf. 14302 Marina San Pablo
Place SPE, LLC v. VCP-San Pablo, Ltd., 92 So. 3d 320, 321 (Fla. 1st DCA
2012) (Ray, J., concurring) ("While at least one district court has held
that certain defects of [case] jurisdiction are waivable, precedent from
this Court requires us to hold that the type of jurisdictional challenge
presented in this case cannot be waived and may be raised for the first
time on appeal." (footnote omitted)). But see MCR Funding v. CMG
Funding Corp., 771 So. 2d 32, 35 (Fla. 4th DCA 2000) (holding that MCR
could not challenge the trial court's case jurisdiction for the first time on
appeal after "having willingly submitted itself, and the dispute, to the
court's authority").
Subject matter jurisdiction involves the trial court's power "to deal
with a class of cases to which a particular case belongs." Cunningham v.
Standard Guar. Ins., 630 So. 2d 179, 181 (Fla. 1994). Circuit courts,
generally, have subject matter jurisdiction over foreclosure cases. See
art. V, ยง 5(b), Fla. Const.; ยง 26.012(2)(a), (c), (g), Fla. Stat. (2018); ยง
34.01(1)(c), Fla. Stat. (2018); Alexdex Corp. v. Nachon Enters., Inc., 641
So. 2d 858, 862 (Fla. 1994).
However, the issue here is more properly considered a question of
case jurisdiction. "[Case] jurisdiction refers to a trial court's jurisdiction
to act in a case over which it had subject matter jurisdiction . . . ." Pulte,
334 So. 3d at 680 (quoting Kozel v. Kozel, 302 So. 3d 939, 945 (Fla. 2d
DCA 2019)). A trial court loses case "jurisdiction upon the rendition of a
final judgment and expiration of the time allotted for altering, modifying
or vacating the judgment." Ross v. Wells Fargo Bank, 114 So. 3d 256,
257 (Fla. 3d DCA 2013) (citing Patin v. Popino, 459 So. 2d 435, 436 (Fla.
3d DCA 1984)), construed in Renovaship, Inc. v. Quatremain, 208 So. 3d
280, 283 n.6 (Fla. 3d DCA 2016) (clarifying that the issue in Ross
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involved case jurisdiction). The trial court "retains jurisdiction to the
extent such is specifically reserved in the final judgment or to the extent
provided by statute or rule of procedure." Id. (first citing Ross v. Damas,
31 So. 3d 201, 203 (Fla. 3d DCA 2010); and then citing Harrell v. Harrell,
515 So. 2d 1302, 1304 (Fla. 3d DCA 1987)).
Unquestionably, the trial court entered a final order in the initial
Hillsborough County case without reserving jurisdiction over any matter.
JJJTB unsuccessfully appealed that final order. See Fla. R. App. P.
9.030(b)(1)(A); JJJTB, Inc., 197 So. 3d 50; see generally SCI, Inc. v. Aneco
Co., 410 So. 2d 531, 532 (Fla. 2d DCA 1982) ("The test to be used by
appellate courts in determining finality of an order, judgment or decree is
whether there has been an end to the judicial labor below and nothing
further remains to be done to terminate the dispute between the parties
directly affected." (citation omitted)). Our mandate did not authorize
JJJTB to amend its pleadings. To do so could deride the "finality" of our
appellate decisions. See generally Taneja v. First St. & Fifth Ave., LLC,
338 So. 3d 362, 363 (Fla. 2d DCA 2022) ("[A] procedure which allows an
appellate court to rule on the merits of a trial court judgment and then
permits the losing party to amend his initial pleadings to assert matters
not previously raised renders a mockery of the 'finality' concept in our
system of justice." (alteration in original) (quoting Dober v. Worrell, 401
So. 2d 1322, 1324 (Fla. 1981))); Don Suntan Corp. v. Tanning Rsch.
Lab'ys, Inc., 505 So. 2d 35, 36 (Fla. 5th DCA 1987) ("In order to prevent
later events in the trial court from circumventing or 'mooting' the binding
aspect of an appellate adjudication, the general rule is that once an
appeal has been taken, the decision on appeal becomes 'the law of the
case,' and, on remand, amendments to the pleadings cannot be made to
present new and different issues of fact or law unless the appellate court
in its opinion has authorized such amendments.").
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Consequently, the trial court lacked case jurisdiction to proceed
with JJJTB's amended foreclosure complaint. See Garcia v. Christiana
Tr., 208 So. 3d 176, 178 (Fla. 3d DCA 2016) ("As the foreclosure (between
Eduardo Garcia and the Bank) was already final at the time Rocketrider
filed its June 6, 2013 appeal from the post-judgment sale, the Final
Judgment of Foreclosure cannot be reversed nor, for that matter, can it
be re-opened."); Magloire v. Bank of N.Y., 147 So. 3d 594, 595 (Fla. 4th
DCA 2014) (agreeing with homeowners' argument that "the trial court
erred in granting the bank's motion for summary judgment after the trial
court previously dismissed the case for lack of prosecution"); Ross, 114
So. 3d at 257 (holding that "the trial court acted in the absence of
jurisdiction" when it permitted the party to file a supplemental complaint
to add an omitted party after its final judgment (first citing Travelers Cas.
& Sur. of Am. v. Sidman, 103 So. 3d 900, 902 (Fla. 2d DCA 2012); and
then citing Damas, 31 So. 3d at 203; and then citing Palin, 459 So. 2d at
436)); Derma Lift Salon, Inc. v. Swanko, 419 So. 2d 1180, 1181 (Fla. 3d
DCA 1982) (holding that the trial court erred in reopening the case
because its case jurisdiction terminated when it denied plaintiff's
rehearing motion).
B. Waiver
JJJTB argues that Schmidt waived the jurisdictional issue by
participating below and failing to timely raise the issue in the trial court.
JJJTB cites Carlton v. Zanazzi, 266 So. 3d 243 (Fla. 2d DCA 2019). In
Carlton, the parties voluntarily dismissed the former wife's dissolution
petition. Id. at 244. She then filed a new petition with the original case
number. Id. at 244. The trial court entered a final dissolution judgment
with the original case number. Id. at 245. We held that "[t]he use of [an]
original case number on a new and separate petition is more in the
nature of a scrivener's error than a jurisdictional defect" and the former
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husband waived the issue by agreeing to the final judgment and seeking
affirmative relief. Id. at 247-48.
Unlike the former wife in Carlton, JJJTB did not use the old case
number to file a new foreclosure complaint. Rather, it sought to revive
its long-resolved first action in Hillsborough County, as well as to add a
new claim. This was no scrivener's error. Our record demonstrates that
JJJTB knew the difference between amending a complaint and filing a
new action. Unfortunately for JJJTB, it did not choose wisely.
Given JJJTB's experience in the initial Hillsborough County suit
and its subsequent Polk County suit, we can only surmise that JJJTB
sought to avoid a statute of limitations defense. See generally Sch. Bd. of
Broward Cnty. v. Surette, 394 So. 2d 147, 154 (Fla. 4th DCA 1981)
("Although amendments should be permitted liberally, one cannot defeat
the bar of the statute of limitations by filing a new cause of action
labelled as an amended complaint. The rule of liberality does not
authorize a new cause of action." (first citing Cox v. Seaboard Coast Line
R.R. Co., 360 So. 2d 8, 10 (Fla. 2d DCA 1978); and then citing Versen v.
Versen, 347 So. 2d 1047, 1050 (Fla. 4th DCA 1977))).
We are mindful that the trial court dismissed JJJTB's claim on the
note, entered a judgment on the new foreclosure claim, but did not
amend or vacate its July 2015 final order. Due to the lack of case
jurisdiction, however, the trial court was powerless to proceed. See
Trerice v. Trerice, 250 So. 3d 695, 698 (Fla. 4th DCA 2018) ("The concept
of 'the power of the court over a particular case' is rooted in the notion
that given the procedural posture of the case, the court is without
authority to act."). Thus, we must reverse. See Pulte, 334 So. 3d at 680-
681; 84 Lumber Co. v. Cooper, 656 So. 2d 1297, 1299-1300 (Fla. 2d DCA
1994).
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III. Conclusion
We reverse the final foreclosure judgment and remand for further
proceedings consistent with this opinion. See Pulte, 334 So. 3d at 680-
681; 84 Lumber Co., 656 So. 2d at 1299-1300. Consequently, we also
reverse the attorneys' fee order. See generally Marty v. Bainter, 727 So.
2d 1124, 1125 (Fla. 1st DCA 1999) ("Once a final judgment is reversed
and remanded by an appellate court, there can be no prevailing party for
purposes of an award of prevailing party attorney's fees. Consequently,
an award of attorney's fees and costs predicated on a reversed or vacated
final judgment also must be reversed.").
We certify conflict with the Fourth District's decision in MCR
Funding, 771 So. 2d at 35-36, as we did in Pulte. See Pulte, 334 So. 3d
at 681 (certifying conflict), review dismissed, No. SC22-415, 2022 WL
2663058, at *1 ("The parties having filed a proper stipulation for
dismissal pursuant to Florida Rule of Appellate Procedure 9.350(a), it is
ordered that the petition for review is hereby voluntarily dismissed."); see
also Schroeder v. MTGLQ Invs., L.P., 290 So. 3d 93, 97 (Fla. 4th DCA
2020) ("[S]imilar to the situation we addressed in MCR Funding[, 771 So.
2d 32], any fundamental error was waived by Appellant having willingly
submitted herself to the trial court's authority to decide the dispute."),
review denied, No. SC20-368, 2020 WL 3525940, at *1 (Fla. June 30,
2020).
Reversed and remanded with directions; conflict certified.
BLACK and LUCAS, JJ., Concur.
Opinion subject to revision prior to official publication.
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