FLORIDA AWARDS SANCTIONS | KEY POINTS

1. The Middle District of Florida, Orlando Division, remanded a matter back to state court and imposed sanctions on movants, Valeria and Eliezer Taveras, for removing the state foreclosure action to federal court a second time after their first attempt at removal failed. S. Bank, Nat’l Assoc. as Legal Title Trustee for Truman 2016 SC6 Title Trust v. Taveras, Middle District (Orlando), Case No. 6:23-cv1493-WWB-EJK.

2. The federal court found there to be no diversity jurisdiction even though the Taveras had moved to Spain because the Tavers maintained their United States citizenship. The Court also found the notice of removal to be untimely having been filed nearly eight years after commencement of the foreclosure in state court whereas the removal statute provided a one-year deadline for removing a matter to federal court. The Court rejected the Taveras’ argument that US Bank acted in bad faith to prevent removal explaining the argument lacked factual or legal support.

3. Lastly, the Court concluded that it did not have subject matter jurisdiction despite the Taveras’ arguments that the foreclosure claims were “pre-empted by federal law.” Again, the Court found the argument waived for want of legal or factual support. The Court awarded attorneys’ fees and costs to US Bank as a sanction against the Taveras for removing the matter a second time even though they knew the alleged basis for removal was meritless. Hopefully, the imposed sanctions will deter the Taveras as well as other parties from filing frivolous pleadings for dilatory purposes.

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