Taylor v. Deutsche Bank National Trust Co.

Summary

The Florida Fifth District Court of Appeal affirmed a summary final judgment of foreclosure in favor of Deutsche Bank National Trust Company. The court held that, under the mortgage documents and Florida’s Uniform Commercial Code, MERS could act as a nonholder in possession with the rights of a holder and could assign those enforcement rights to Deutsche Bank. The assignment therefore gave Deutsche Bank standing to foreclose despite MERS’s lack of a beneficial ownership interest in the note.

Holdings

1. Under section 673.3011, Florida Statutes, a person entitled to enforce a negotiable instrument may be either the holder or a nonholder in possession of the instrument who has the rights of a holder; therefore, enforcement and foreclosure are not limited to the holder in due course or beneficial owner.
2. Where the mortgage expressly designates MERS as nominee and mortgagee and grants it authority to exercise the lender's interests, including the right to foreclose, MERS may assign those enforcement rights even though it lacks a beneficial ownership interest in the note.
3. The written assignment from MERS to Deutsche Bank properly transferred the note and mortgage and gave Deutsche Bank standing to foreclose.

Questions Presented

1. Whether a nonholder in possession of a negotiable promissory note who has the rights of a holder may enforce the note and foreclose the accompanying mortgage under section 673.3011, Florida Statutes.
2. Whether MERS's contractual designation as nominee and mortgagee, together with the mortgage's express grant of foreclosure authority, gave MERS the power to assign enforcement rights to Deutsche Bank.
3. Whether Deutsche Bank established standing to foreclose through the written assignment of the note and mortgage, notwithstanding the absence of an indorsement, allonge, or specific assignment on the note.

Disposition

affirmed