Eastern Nat. Bank v. Glendale Federal Sav. and Loan Ass'n, No. 86-1925

CourtCourt of Appeal of Florida (US)
Writing for the CourtFERGUSON
Citation12 Fla. L. Weekly 1538,508 So.2d 1323
Parties12 Fla. L. Weekly 1538 EASTERN NATIONAL BANK, Appellant, v. GLENDALE FEDERAL SAVINGS AND LOAN ASSOCIATION, Appellee.
Decision Date23 June 1987
Docket NumberNo. 86-1925

Page 1323

508 So.2d 1323
12 Fla. L. Weekly 1538
EASTERN NATIONAL BANK, Appellant,
v.
GLENDALE FEDERAL SAVINGS AND LOAN ASSOCIATION, Appellee.
No. 86-1925.
District Court of Appeal of Florida,
Third District.
June 23, 1987.

Weintraub & Rosen and Michael A. Rosen, Miami, for appellant.

Mershon, Sawyer, Johnston, Dunwody & Cole and Dennis M. Campbell and S. Austin Carr, Miami, for appellee.

Before BASKIN, DANIEL S. PEARSON and FERGUSON, JJ.

FERGUSON, Judge.

Plaintiff Eastern National Bank (Eastern) appeals from a final summary judgment entered on defendant Glendale Savings

Page 1324

and Loan Association's (Glendale) counterclaim. Eastern contends that Glendale is not entitled to be equitably subrogated to an existing debt according to the terms of its contract with the borrower because Glendale took no reasonable precautions to ascertain that there were no liens recorded ahead of its mortgage.

The borrowers, Mr. and Mrs. Valenti, applied on January 1, 1985, for a loan from Glendale to pay off the second of two mortgages on their home held by AmeriFirst Savings and Loan Association. Glendale agreed to step into AmeriFirst's position as a second mortgagee for the loan. The loan was approved on April 25, 1985, and funded and recorded on April 30, 1985. 1

On April 8, 1985, Eastern closed a business loan for Tom Valenti Construction Corp. for $125,000, also secured by a mortgage on the Valenti home. In its agreement with the borrowers, Eastern expressly agreed to a third mortgage subordinate to AmeriFirst's first and second mortgages. The Valentis' did not inform Glendale of the third mortgage. Eastern, however, got to the courthouse on April 16, 1985, to record its third mortgage, fourteen days ahead of the recording of Glendale's second mortgage. Tom Valenti Construction Corp. defaulted on its loan, and Eastern instituted foreclosure proceedings against the construction company and the Valentis for $86,985.47, plus interest. Eastern named Glendale a party defendant in the action on the basis that Glendale holds, on the same home, a subordinate and inferior mortgage because Glendale's mortgage was recorded after Eastern's mortgage. Glendale's answer denied that its mortgage was inferior to Eastern's mortgage, and counterclaimed for a judgment against Eastern. Glendale moved for summary judgment on its counterclaim against Eastern, asserting its mortgage was superior by virtue of the doctrine of equitable subrogation. After a hearing on the motion, the trial court ruled that there were no genuine issues of material fact and that Glendale, as a matter of law, was entitled to priority over Eastern's mortgage loan. Summary judgment was entered for Glendale on its counterclaim.

Eastern argues that its mortgage is superior by virtue of an earlier recordation, notwithstanding the terms of its contract, and that equity cannot alter that fact because Glendale was negligent in failing to update a title examination before closing...

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41 practice notes
  • Transamerica Ins. Co. v. Barnett Bank of Marion County, N.A., No. 86-1328
    • United States
    • Court of Appeal of Florida (US)
    • March 24, 1988
    ...his own interest, or because he is under a legal duty to do so. Eastern National Bank v. Glendale Federal Savings and Loan Association, 508 So.2d 1323, 1324 (Fla. 3rd DCA 1987). The latter is typically the category into which are placed sureties who complete construction contracts, and suff......
  • Kala Investments, Inc. v. Sklar, No. 86-3004
    • United States
    • Court of Appeal of Florida (US)
    • January 31, 1989
    ...to the rights and priorities of the original creditor." Eastern National Bank v. Glendale Federal Savings and Loan Association, 508 So.2d 1323, 1324 (Fla. 3d DCA 1987). The policy behind the doctrine is to prevent unjust enrichment by assuring that the person who in equity and good conscien......
  • Dade Cty. Sch. Bd. v. Radio Station WQBA, No. 91,767.
    • United States
    • United States State Supreme Court of Florida
    • February 4, 1999
    ...a third party. See Fowler v. Lee, 106 Fla. 712, 714-15, 143 So. 613, 614 (1932); Eastern Nat'l Bank v. Glendale Fed. Sav. & Loan Ass'n, 508 So.2d 1323, 1324-25 (Fla. 3d DCA 1987). As a result of equitable subrogation, the party discharging the debt stands in the shoes of the person whose cl......
  • Dade County School Bd. v. Radio Station WQBA, Nos. 95-0534
    • United States
    • Court of Appeal of Florida (US)
    • May 7, 1997
    ...States Fidelity & Guaranty Co. v. Bennett, 96 Fla. at 828, 119 So. at 394; Eastern Nat'l Bank v. Glendale Fed. Sav. and Loan Ass'n, 508 So.2d 1323 (Fla. 3d DCA 1987). Although the right to subrogation is not absolute, it is a "flexible and elastic equitable doctrine, and hence 'the mere fac......
  • Request a trial to view additional results
40 cases
  • Transamerica Ins. Co. v. Barnett Bank of Marion County, N.A., No. 86-1328
    • United States
    • Court of Appeal of Florida (US)
    • March 24, 1988
    ...his own interest, or because he is under a legal duty to do so. Eastern National Bank v. Glendale Federal Savings and Loan Association, 508 So.2d 1323, 1324 (Fla. 3rd DCA 1987). The latter is typically the category into which are placed sureties who complete construction contracts, and suff......
  • Kala Investments, Inc. v. Sklar, No. 86-3004
    • United States
    • Court of Appeal of Florida (US)
    • January 31, 1989
    ...to the rights and priorities of the original creditor." Eastern National Bank v. Glendale Federal Savings and Loan Association, 508 So.2d 1323, 1324 (Fla. 3d DCA 1987). The policy behind the doctrine is to prevent unjust enrichment by assuring that the person who in equity and good con......
  • Dade Cty. Sch. Bd. v. Radio Station WQBA, No. 91,767.
    • United States
    • United States State Supreme Court of Florida
    • February 4, 1999
    ...third party. See Fowler v. Lee, 106 Fla. 712, 714-15, 143 So. 613, 614 (1932); Eastern Nat'l Bank v. Glendale Fed. Sav. & Loan Ass'n, 508 So.2d 1323, 1324-25 (Fla. 3d DCA 1987). As a result of equitable subrogation, the party discharging the debt stands in the shoes of the person whose ......
  • Dade County School Bd. v. Radio Station WQBA, Nos. 95-0534
    • United States
    • Court of Appeal of Florida (US)
    • May 7, 1997
    ...States Fidelity & Guaranty Co. v. Bennett, 96 Fla. at 828, 119 So. at 394; Eastern Nat'l Bank v. Glendale Fed. Sav. and Loan Ass'n, 508 So.2d 1323 (Fla. 3d DCA 1987). Although the right to subrogation is not absolute, it is a "flexible and elastic equitable doctrine, and hence 'the......
  • Request a trial to view additional results

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