DYCK NEAL INC v. STERMILLI (2018)

In Higgins v. Dyck-O'Neal, Inc., this court held that “a party is not entitled to pursue an action at law on a promissory note where that party includes a prayer for a deficiency judgment in its foreclosure complaint and the trial court reserves jurisdiction to enter a deficiency judgment.” 201 So. 3d 157, 166 (Fla. 1st DCA 2016). Based on that case, which was binding at the time, the trial court dismissed with prejudice appellant's independent action for a deficiency judgment.

On appeal, appellant argued that Higgins was wrongly decided. And while the appeal was pending, the Florida Supreme Court agreed. It disapproved Higgins and held that “when a foreclosure court reserves jurisdiction to adjudicate a deficiency judgment claim but has not adjudicated the claim, section 702.06, Florida Statutes (2014), permits the lender or its assignee to bring its deficiency claim in a separate action at law.” Dyck-O'Neal v. Lanham, SC17-975, ––– So.3d ––––, 43 Fla. L. Weekly S278c, 2018 WL 3301567 (Fla. July 6, 2018). Accordingly, we reverse and remand for further proceedings on appellant's deficiency claim.

Reversed and Remanded.

Per Curiam.

Makar, Winokur, and Winsor, JJ., concur.