Farmers & Merchants Bank v. Riede
Farmers & Merchants Bank v. Riede
Opinion of the Court
Appellant, Farmers and Merchants Bank (the bank), appeals a trial court order reinstating a satisfied mortgage and determining the appellees, William P. Riede and Francis V. Riede (the Riedes), to have foreclosure priority, pursuant to the reestablished mortgage, over the bank.
In January of 1983, Maurice and Berneal McKennie (the McKennies) gave the Riedes a mortgage on real property owned by the McKennies in Walton County, Florida. The Riedes promptly recorded their mortgage. In March of 1983, the McKennies gave another mortgage on the same property to the bank. Then, in July of 1983, under circumstances amounting to mistake of fact,
In February of 1988, the Riedes filed an action to reestablish and foreclose their mortgage. The bank, as the holder of a subsequent mortgage, was a defendant in that action. In November of 1989, the trial court entered an order reestablishing the Riedes’ mortgage, setting aside the mortgage satisfaction and determining the Rie-des’ mortgage to have priority over the bank’s mortgage.
First, the bank contends that the trial court erred in setting aside the satisfaction and reinstating the Riede mort
We agree with the trial court’s conclusion that the bank, in taking its mortgage, did not detrimentally rely upon the satisfaction executed by the Riedes. What the bank did rely upon was a promise by the McKennies, which was never fulfilled. Under these circumstances, it is clear that the Riedes’ actions caused the bank no injury. Consequently, the Riedes were entitled to the relief granted.
Next, the bank argues that the Rie-des’ action to set aside or rescind the satisfaction was barred by a four-year statute of limitations, because the Riedes’ complaint was filed some four years and seven months after the date of the execution and recordation of the satisfaction. Whether a separate action to rescind a mortgage satisfaction is subject to a five-year limitations period under Section 95.11(2)(b), Florida Statutes, or a four-year limitations period under Section 95.11(3)(p), Florida Statutes, need not be decided, because the Riedes’ complaint did not seek rescission as a separate remedy. Rather, the Riedes sought reestablishment and foreclosure of their mortgage, and rescission of the satisfaction was merely incident to the primary remedy they requested. Accordingly, the five-year limitations period applicable to equitable actions on contracts, obligations, or liabilities founded on a written instrument, Section 95.11(2)(b), Florida Statutes, and actions for foreclosure of mortgages, Section 95,ll(2)(c), Florida Statutes, controlled, and the Riedes’ suit was timely. Hughes v. Shaner, 128 Fla. 183, 174 So. 400, 402 (1937).
Wé also find the other arguments raised by the bank to be without merit. Accordingly, the order of the trial court is affirmed.
. The order is reviewable under Rule 9.130(a)(3)(C)(iv), Florida Rules of Appellate Procedure.
. There was ample evidence of mistake of fact presented in the hearing below, and, at the conclusion of the hearing, the trial court announced that he found that the satisfaction had been executed due to mistake. Nevertheless, when he prepared the order under review, the trial court used the term “fraud," rather than "mistake." Appellant argues on appeal that the' order should be reversed because of an absence of proof of fraud. We disagree. Where the lower court assigns an erroneous reason for its decision, the decision will be affirmed where there is some other reason or basis to support it. In re Estate of Yohn, 238 So.2d 290, 295 (Fla. 1970).
Case-law data current through December 31, 2025. Source: CourtListener bulk data.