NEW APPELLATE DISTRICT | KEY POINTS

1. The Sixth DCA reversed a Lee County circuit court which found that a foreclosure was barred by the statute of limitations despite a settlement agreement which clearly prohibited the mortgagors from raising defenses in any foreclosure proceedings. Cape Coral Loan Acquisitions, LLC v. 924 Del Prado, LLC, No. 6D23-401, 2023 WL 6522743 (Fla. App. 6D Oct. 6, 2023). After the mortgagors’ payment default under the terms of their mortgage, the parties entered into a settlement agreement which explicitly prohibited the borrowers from asserting “defenses of any nature whatsoever under the Loan documents.”

2. The mortgagors breached the settlement agreement, Cape Coral filed foreclosure proceedings and the mortgagors moved for summary judgment based on Florida’s 5-year statute of limitations for mortgage foreclosures. The trial court agreed Cape Coral’s claim was barred and granted summary judgment in favor of the mortgagors. Cape Coral appealed.

3. The Sixth DCA reversed explaining that “when the language of the contract is clear and unambiguous, the contract must be interpreted and enforced in accordance with its plain meaning.” The Court concluded that since the statute of limitations was an affirmative defense, the mortgagors were prohibited from raising it as a defense. The Court remanded the matter for further proceedings.

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