fl 4th dca pino v. the bank of new york mellon oral arguments transcript

8/7/2019 FL 4th DCA Pino v. the Bank of New York Mellon Oral Arguments Transcript

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CONSOR & ASSOCIATES REPORTING AND TRANSCRIPTION

561.682.0905

I N T HE D IS TR IC T C OU RT O F A PP EA L O F T HE S TA TE O F F LO RI DAFOURTH DISTRICT

ROMAN PINO,

Appellant,

v.

T HE B ANK O F N EW Y OR KM EL LO N, e tc ., e t a l. ,

Appellee.

-------------------------------------------/

ORAL ARGUMENT BEFORE:

HONORABLE GARY M. FARMER, Presiding

HONORABLE MARTHA C. WARNER

H ON OR AB LE M AR K E . P OL EN

Wednesday, November 10, 2010

1 0: 42 a .m . - 1 1: 23 a .m .

1 52 5 P al m B ea ch L ak es B ou le va r d

W es t P al m B ea ch , F lo ri da 3 34 01

Reported By:L uc il le H ut tl e, R PR , F PRN ot ar y P ub li c S ta te o f F lo ri daJ . C on so r & A ss oc ia te s R ep or ti ng & T ra ns cr ip ti onW es t P al m B ea ch O ff ic ePhone 561.682.0905


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APPEARANCES:

O n B eh al f o f t he A pp el la ntE NR IQ UE N IE VE S, I II , E S Q.I C E L EG AL , P .A .

1 01 5 N . S ta te R oa d, S ui te D

R oy al P al m B ea ch , F lo ri da 3 34 11

O n B eh al f o f t he A pp el le eKATHERINE E. GIDDINGS, ESQ.K EN T F RA ZE R, E SQ .AKERMAN SENTERFITT, LLP

1 06 E as t C ol le ge A ve nu e, S ui te 1 20 0P os t O ff ic e B ox 1 87 7 ( 32 30 2 -1 87 7)Tallahassee, Florida 32301


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P R O C E E D I N G S:

- - -

J UD GE F AR ME R: O ur n ex t c a se i s P i no a ga in st

BNY.

M R. N I EV ES : G oo d m or ni ng .

J UDG E F ARM ER : G oo d m or ni ng . W elc om e t o t he

Fourth District to everyone.

MR . N I EV ES: M ay i t p l ea se t he C ou rt , m y n am e

i s E nr iq ue N ie ve s w it h I ce L eg al , a nd I r ep re se nt t he

a pp el la nt R om an P in o. I w ou ld l ik e t o r es er ve f ou r

minutes for rebuttal.

J UDG E FA RM ER : Y ou g ot i t. Y ou h av e fi ft ee n

m in ut es t ot al , s o y ou 'l l h av e p le nt y o f t im e t o

present your case.

MR . N IE VE S: T he re a re tw o m ai n i s su es i n t hi s

c as e. F ir st , t he re 's R om an P in o' s m ot io n t o s tr ik e

t he b an k' s n ot ic e o f v ol un ta ry d is mi ss al , a ll eg e a

c ol or ab le e nt it le me nt t o r el ie f w he n i t a ll eg ed t ha t

p la in ti ff f or ge d t he d oc um en t a nd f il ed i t a s

e vi de nc e i n t hi s c as e. If s o, t hen t ha t w ou ld

require an evidentiary hearing.

T he o th er i s a n i nt er re la te d s ub - is su e, w hi ch

is : D oe s a l it iga nt t ha t r el ie s o n f or ged ,

f ab ri ca te d p ro of n ee d t o s uc ce ss fu ll y m is le ad t he


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C ou rt i n o rd er f or t he i nn oc en t p ar ty t o s tr ik e t he

v ol un ta ry d is mi ss al u nd er R ul e 1 .5 40 ? I n o th er

w or ds , m us t t he f ra ud b e s uc ce ss fu l? T he se a re b ot h

l eg al i ss ue s o f t he s ta nd ar d r ev ie ws o f d e n ov o.

A nd g iv in g a l it tl e b it o f b ac kg ro un d, t he

p la in ti ff f il ed a c om pl ai nt a ll eg in g t ha t t he y o wn

t he m or tg ag e b y v ir tu e o f a n a ss ig nm en t t o b e

r ec or de d. T he a tt ac he d m or tg ag e s ho we d a d if fe re nt

e nt it y a s a m or tg ag ee , a nd i t a ls o c la im ed t ha t t he

p ro mi ss or y n ot e h a d b ee n l os t, d es tr oy ed o r s to le n.

A cc or di ng ly , P in o m ov ed t o d is mi ss t he c om pl ai nt

because the alleged assignment wasn't attached

s ho wi ng c ha ng e o f t it le . T he b an k a m en de d t h e

c om pl ai nt t o f ix t he d ef ec t a nd a tt ac he d a n

u nr ec or de d a ss ig nm en t o f m or tg ag e. T he a ss ig nm en t o f

m or tg ag e p ur po rt ed t o b e e xe cu te d f iv e d ay s b ef or e

t he c as e w as f il ed .

P in o t he n m ov ed t o d is mi ss t he c om pl ai nt a nd

sought sanctions because the assignment of mortgage

w as f ra ud ul en tl y b ac kd at ed . P in o s et t he d ep os it io n

o f s ev er al n ot ar ie s a nd w it ne ss es , a ll e mp lo ye es o f

t he L aw O ff ic e o f D av id S te rn , w hi ch i s B NY M el lo n,

th e b an k' s c ou ns el . A nd o n t he e ve of t he

d ep os it io ns , t h e b an k f il ed a n ot ic e o f v ol un ta ry

d is mi ss al i n t h e c as e .


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S in ce t he n, a n i de nt ic al a ct i on h as b ee n f il ed

a ga in st P in o w it h t he s am e p la in ti ff s ui ng o n t he

s am e m o r tg ag e. T h e c o mp la in ts a re v ir tu al ly

i de nt ic al , e xc ep t i t n ow d oe sn 't p le ad t ha t t he n ot e

is lo st . A nd n ot ic ea bl y a bs en t f ro m t he ne w c as e i s

the fraudulent assignment of mortgage.

J UD GE P OL EN : M r. N ie ve s, d id t he n ew l aw su it

pl ea d t he s ame p er iod o f d ef au lt ? O r wa s it al le gi ng

a n ew d ef au lt i n p ay me nt s?

MR . N IE VE S: I b el ie ve i t w as th e s am e, t he

s ame e xa ct - - I b el ie ve it w as i de nt ic al. I do n' t

b el ie ve t ha t i t p le d n ew d ef au lt s, a s f ar a s m y

understanding.

J UD GE F AR ME R: I n o th er w or ds , t he y d id n' t

c la im a d ef au lt t ha t a ro se a ft er t he y v ol un ta ri ly

d is mi ss ed t he ir f ir st m or tg ag e i n t he ir s ec on d

lawsuit.

M R. N IE VE S: I b el ie ve t he y d id n' t.

J UD GE F AR ME R: O ka y.

MR . N IEVE S: So, now in its place is a new

assignment that postdates a voluntary dismissal, but

d oe s n ot m en ti on o r e ve n r ef er t o a p re vi ou s

a ss ig nm en t. S o, P in o t he n m ov ed t o s tr ik e t he n ot ic e

of voluntary dismissal and requested an evidentiary

h ea ri ng t o d em on st ra te t he f ra ud , a nd t ha t B N Y


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M el lo n' s c ou ns el c re at ed , e xe cu te d a nd f il ed a

fraudulently backdated assignment of mortgage, and

t hat t he re w as f rau d on th e C o ur t. It a ls o s ou gh t t o

d is mi ss t he c as e w it h p re ju di ce . S o, u lt im at el y,

t hi s c ou rt m us t l oo k t o t he a ll eg at io ns o f t he m ot io n

to determine colorable entitlement.

A nd i f i t h as n' t b ee n c le ar f ro m w ha t I 'v e

s ai d, t he a ll eg at io ns a re t ha t t he L aw O ff ic e o f

David Stern forged documents, created and executed

a nd f il ed t he f ra ud ul en tl y b ac kd at ed a ss ig nm en t. T he

ot he r p ar t o f i t i s: T he a ss ig nm en t p urp or ts t o

t ra ns fe r p ro pe rt y i nt er es t t o D av id S te rn ' s o wn

c li en t, w hi ch i s, u nd er s om e c as e l aw , t he p ri ma ry

e vi de nc e i n o ne o f t he se t yp es o f f or ec lo su re c as es .

Further --

J UD GE P OL EN : I 'm a fr ai d I ' m n ot f ol lo wi ng

t hat . D av id S te rn 's c li en t a t t he t im e w as B NY

Mellon Bank, right?

MR . N IE VE S: Y es .

J UDG E P OL EN : O ka y. A nd t ha t' s ev id en ce o f

w ha t, a n a ss ig nm en t t o a b an k?

M R. N IE VE S: B as ic al ly , t h e l a w f i rm

manufactured evidence for the client's case.

J UD GE PO LE N: O ka y.

MR . N IE VE S: I t w as s ig ned a nd e xe cu te d b y


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C he ry l S am on s, w ho w or ks f or D av id S te rn , a nd

executed the assignment solely for the litigation,

a nd , i n t he a ss ig nm en t, p os ed a s a n o ff ic er o f a

different entity.

J UDG E P OL EN : L et m e g o to t hi s b ec au se y ou r

m ot io n w as d en ie d , s o t he re w as n ev er a n e vi de nt ia ry

hearing, obviously.

M R. N I EV ES : N o, t he re w as n' t.

J UD GE P OL EN : W as t he re a ny th in g i n t h e m o ti on

t ha t r ef le ct s, o r a ny r ec or d t ha t w e h av e, a s f ar

as -- I d on 't k no w i f t he re w as a tr an sc ri pt of t he

h ea ri ng o n t he m ot io n b ef or e J ud ge S as se r .

MR . N IE VE S: Y es , t he re w as .

J UD GE P OL EN : - - h o w y ou r f i rm a tt ai ne d t h at ?

Y ou n ev er g ot t o t ak e t h e d ep os it io ns b ec au se t he y

d is mi ss ed t hr ee d ay s b ef or e t he d ep os it io ns w er e

s ch ed ul ed t o b e h el d.

M R. N IE VE S: I t' s pr et ty i nt er es ti ng . I 'l l

e xpl ai n t o y ou w hy w e k ne w w ha t w e k ne w.

T he re w er e a c ou pl e t hi ng s t ha t w e a lr ea dy

k new , o r I s ho ul d s ay s ev er al . O ne , t ha t t he n ot ar y

o n t he a ss ig nm en t w or ke d f or D on na E ve rt z w ho w as t he

a tt or ne y w ho w a s h an dl in g t he c as e i n t he l it i ga ti on

d ep ar tm en t. W e k ne w t ha t t he l it ig at io n d ep ar tm en t

d id n ot h an dl e c as es u nt il t he y w er e c o nt es te d, a nd


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w e a ls o k ne w t ha t D on na E ve rt z w as a ss ig ne d a ll o f

o ur c as es o nc e w e b ec am e i nv ol ve d.

S o, w e b eg an l oo ki ng a t r ec or ds t o s ho w t ha t

t he re 's n o w ay M ic he ll e G ra nt ( ph on et ic ) w ou ld h av e

n ot ar iz ed t he se t yp es o f a ss ig nm en ts b ec au se i t w ou ld

h av e n ec es sa ri ly h ad t o e xi st b ef or e t he y w er e e ve r

in he r d ep art me nt . A nd w ha t w e f ou nd w ere 2 1 c as es

w he re t he n ot ar y s ta mp w as n ot i ss ue d a t t he t im e o f

the alleged assignment notarization.

S o, b as ic al ly , t o e xp la in i t b et te r, t he n ot ar y

s ay s i t' s d at ed i n J an ua ry , t he s ta mp w as n' t i ss ue d

un ti l M ay . T ho se a re t he t yp es o f c as es w e f o un d.

So , w e k ne w t ha t, g iv en al l t he p la ye rs i n t he

l it ig at io n d ep ar tm en t , w e k ne w t ha t i t w as c le ar t ha t

t hi s w as o ne o f t he c as es t ha t i t w as a f ra ud ul en tl y

backdated assignment.

J UDG E P OL EN : T hi s m ay b e g oi ng o ut si de t he

record. If it is , p erhaps we --

MR . N I EV ES: A nd I 'm j us t a ns we ri ng a s t o h ow

w e f ig ur ed i t o ut .

J UD GE P OL EN : T he se m at te rs c on ta in ed i n

M r. S te rn 's l aw f ir m a re t he s ub je ct o f a n

i nv es ti ga ti on b y t he A tt or ne y G en er al , a re t he y n ot ?

MR . N IE VE S: Y es , t he y a re .

J UD GE PO LE N: O ka y.


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MR . N I EV ES: S o, I t hi nk , a t t hi s p o in t, i t' s

c le ar w ha t t he m ot io n a ll eg es .

J UDG E P OL EN : W el l, w e n ee d t o g et t o t he m ea t

o f t he m at te r, w hi ch i s: Y ou r o pp on en t o b vi ou sl y i s

g oi ng t o a rg ue t ha t t he re i s a n u nq ua li fi ed r ig ht t o

t ak e a v ol un ta ry d is mi ss al , a nd t he T ri al C ou rt h as

n o j ur is di ct io n t o g o b ey on d t ha t, w hi ch i s w ha t

J ud ge S as se r h a s r ul ed .

MR . N IE VE S: A nd t he l owe r c ou rt fe lt i ts h an ds

w er e t i ed . I t m i st ak en ly r el ie d o n B ev an v .

D 'A le ss an dr o, w hi ch w as a c as e w he re t he re w as a l ac k

o f p ro se cu ti on , a m ot io n t ha t w as a n o rd er t o s ho w

c au se w it hi n f iv e d ay s, a nd t he n t he p la in ti ff

v ol un ta ri ly d is mi ss ed t h e c as e t o a vo id t h e l ac k o f

prosecution.

S o, t ha t c as e p it te d t he v ol un ta ry d is mi ss al

r ul e v e rs us t he l ac k o f p r os ec ut io n r u le . A nd i n

t ha t c as e, t he C ou rt h el d t ha t t he v ol un ta ry

d is mi ss al r ul e t ru mp ed t he l ac k o f p ro se cu ti on r ul e.

A nd i t a ls o n ot ed i n t ha t c as e, a nd i t d is ti ng ui sh ed

p ri or c as es r ec og ni zi ng t he f ra ud e xc ep ti on , i n p ar t,

b ec au se t he B ev an c as e d id n ot r is e t o t he l ev el o f

f ra ud , t ha t t he a ll eg at io ns d id n ot r is e t o t he l ev el

of fr au d. I t w as l ac k o f p ro se cu ti on, a nd t her e w as


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n o a ll eg at io n o f f ra ud i nv ol ve d.

T he m ai n c as e t ha t b as ic al ly r ec og ni ze s t he

f ra ud a s a n e xc ep ti on w he re y ou c an s tr ik e a

v ol un ta ry d is mi ss al i s t he S el ec t B ui ld er s o f

F lor id a v . W on g c as e. A nd i n t h at c as e, th e

p la in ti ff h ad o bt ai ne d a n o rd er e xp un gi ng a n

i nj un ct io n. A nd i t t u rn ed o ut t ha t t h er e m ay h av e

b ee n f ra ud o n t he C ou rt a nd c er ta in p ro ce du ra l

i rr eg ul ar it ie s , s o t h e C ou rt v ac at ed t h e p re vi ou s

order.

T he d ef en da nt t he n m ov ed f o r s an ct io ns a ga in st

t he p la in ti ff c on te nd in g t ha t i t m is le ad t he C ou rt

a nd t ha t t he re w er e p ro ce du ra l i rr eg ul ar it ie s . T he n

t he C ou rt o rd er ed t he p ar ti es t o t ak e s te ps t o p la ce

t he r ea l e st at e i n s ta tu s q uo a nd r eq ui re t he d ep os it

o f m on ey t ha t w as r ec ei ve d f ro m t he s al e o f t he

p ro pe rt y t o a t hi rd p ar ty . A nd t he p la in ti ff

voluntarily dismissed the case.

J UD GE W AR NE R: W el l, i n t h at c as e, t he i ss ue

th er e i s w he th er o r n ot yo u n ee d, i n o ne o f t he se

circumstances, to attack a voluntary dismissal that

a ff ir ma ti ve r el ie f h a s a lr ea dy b ee n o bt ai ne d a s a

r es ul t o f s ome p ro bl em i n c ou rt . I m ea n, i sn 't t ha t

t he b as ic h ol di ng o f S el ec t B ui ld er s, o r a t l ea st h ow

it's interpreted, that because affirmative relief was


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o bt ai ne d, t ha t' s w hy t he y w er e a ll ow ed , i n t ha t c as e,

u nd er , b as ic al ly , " in he re nt p ow er o f t h e C ou rt " k in d

o f t he or y, t o g o b ey on d t he v ol un ta ri ly d is mi ss al ?

M R. N IE VE S: W el l, t he r ea so n t he y w e re a ll ow ed

to wa s t o p rev en t f ra ud on t he C ou rt . A nd o ne t hi ng

t ha t i s i mp or ta nt i s t ha t t he C ou rt h ad a lr ea dy

v ac at ed t he o rd er e xp la in in g t he i nj un ct io n a t t he

t im e o f t he v ol un ta ry d is mi ss al .

S o, u nd er m os t d ef in it io ns o f a ff ir ma ti ve

r el ie f, t ha t w o ul d h a ve b ee n i t . T he y h ad a lr ea dy

fi xe d w ha t t he y h ad d on e w ro ng . B ut t he w ho le p oi nt

in th e c ou rt f or th e c as e t o b e r ei ns tat ed w as t o

a ddr es s t he i ss ue s o f f ra ud . T he C ou rt h ad t he

d is cr et io n t o d ea l w it h f ra ud i ss ue s a n d p re ve nt

i nj us ti ce i n t hi s c ou rt .

A nd a s f ar a s a ff ir ma ti ve r el ie f, t he S el ec t

B ui ld er s c a se d oe s n o t m a ke i t a r eq ui re me nt . I t

r ec og ni ze s t h e e xc ep ti on . I t n o w he re s ay s t h a t

affirmative relief is required.

J UD GE W AR NE R: W el l, t ha t' s o n e o f t h e r ea so ns

wh y i t r ef er s t o s om e o f t he o th er c as es he re . I t

says, We've examined the following authorities, and

f in d i t a pp li ca bl e. A nd t he n i t s ay s, F ir st , t h e

p la in ti ff i n t h e c it ed c as es h as n ot r ec ei ve d

a ff ir ma ti ve r el ie f f ro m a n e qu it y c ou rt . A nd ,


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t he y t ri ed t o u se t he r ul e t o h id e t he ir f ra ud ul en t

a cts . A nd a tt em pt ed f ra ud i s s ti ll f rau d. W e j us t

h ap pe ne d t o c at ch t he m.

A nd n ot t o g o t oo f ar b ey on d t he sc op e, b ut

w he n w e w er e r es ea rc hi ng t hi s a nd w e f ou nd t ho se

21 cases, we just stopped. It was -- it wasn 't a

m at te r o f i t t oo k a ll y ea r. T hi s w as, on i ts f ac e,

t hi s w as h ap pe ni ng e ve ry wh er e. A nd , p ar ti cu la rl y, i n

an ar ea o f l aw t ha t i s h ea vy o n p ro se d ef en dan ts ,

t hi s i s d ef in it el y a n i ss ue t ha t n ee ds t o b e

a dd re ss ed . A nd i t a ct ua ll y - - a nd t aki ng a ny t yp e o f

j ud ic ia l n ot ic e o f t h e i nv es ti ga ti on , w e b el ie ve i t' s

s yst em at ic . I t's a p ol ic y. I t w as n't -- I b el ie ve ,

i n t he a rg um en t b el ow , o pp os in g c ou ns el u se d t he t er m

"e mp ty h ea d b ut n ot e vi l h ea rt ." Th is w as t he ir

p ol ic y a nd p ro ce du re . T hi s i s w hat t he y di d on

purpose.

J UD GE F AR ME R: Y ou 'r e g e tt in g d ow n t o w he re y ou

only have a minute left. And I'd like to see -- you

as ke d f or m ore t im e f or re bu tt al . S o, m ay I s ug ge st

t hat w e - - w hy d on 't we h ea r f ro m t he o th er s id e n ow ,

an d I 'l l g iv e y ou an e xt ra m in ut e o r s o i f y ou n ee d

it to d o a ny s um mi ng up .

M R. N IE VE S: O ka y, t ha t' ll w or k.

J UD GE F A RM ER : T ha nk y o u.


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MS . G ID DI NG S: G oo d m or ni ng , Y ou r H on or s. M ay

i t p le as e t he C ou rt .

J UD GE F AR ME R: G oo d m o rn in g.

M S. G ID DI NG S: I 'm K at he ri ne G id di ng s. I 'm

h er e t od ay w it h K en t F ra ze r o f A ke rm an S en te rf it t.

J UD GE F AR ME R: G oo d m o rn in g.

MS . G ID DI NG S: Y ou r H ono rs , t hi s is a n e as y

c ase . T hi s i s n ot a bo ut t he C ou rt 's i nt eg ri ty . T hi s

is ab ou t w he n y ou c an g o a nd r eo pen a c ase u nd er t he

a bs ol ut e r ig ht t ha t a p ar ty h as t o t ak e a v ol un ta ry

dismissal.

I n oti ce d t ha t m y - - w el l, l et m e a ns we r

J ud ge P ol en 's q ue st io n a b ou t t he n ew c as e. I t hi nk

y ou 'r e p ro ba bl y g et ti ng i nt o t he f ac t t ha t e ve n i f

t hi s c as e w as d is mi ss ed w it h p re ju di ce , t ha t i t c ou ld

be re fi le d. T he re li ef t ha t i s s ou gh t in t he s ec on d

c as e d oe s g o b ac k t o t he s am e d ef au lt d at e, b ut t he re

is a c on ti nu in g d e fa ul t in t hi s c as e. A nd s o,

b ec au se t he d ef au lt i s c on ti nu in g a nd t he re h av e b ee n

n o p ay me nt s, t he n t he s ui t c an b e r ef il ed .

J UD GE P OL EN : T he or et ic al ly , y ou c ou ld f il e a

n ew l aw su it e ve ry m on th , c ou ld n' t y ou ?

MS . G ID DI NG S: Y es , s ir . An d I b e li ev e t ha t' s

w ha t t he S up re me C ou rt h as h el d.

J UDG E POL EN : H er e' s my c on ce rn: I n yo ur


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o pe ni ng c om me nt t ha t t hi s i s n ot a bo ut t he i nt eg ri ty

o f t he C ou rt , I c an 't i ma gi ne a m at te r t ha t w ou ld n ot

b e m or e d ir ec te d t o t he i nt eg ri ty o f t he C ou rt i f t he

a ll eg at io ns i n t he m ot io n t o s tr ik e c an b e p ro ve n.

T he re w as n ev er a n o pp or tu ni ty t o h av e a n

e vi de nt ia ry h ea ri ng , b ut y ou r c li en t e ng ag ed a l aw ye r

by th e n a me of D avi d S te rn . O bv io us ly , h e i s n o

longer representing him, but your client's actions

ar e g ov er ne d b y w ho t he y h ad a s t he ir a ge nt a t t he

time.

M S. G ID DI NG S: Y es , si r.

J UDG E P OL EN : A nd i f, i n f ac t, M r. S te rn 's

o ff ic e d id t he t hi ng s t ha t t he a pp el la nt i n t hi s c as e

i s a ll eg in g t he y d id , t ha t' s e xt re me ly d et ri me nt al t o

t he f un ct io n o f t he c ou rt s i n m et in g o ut j us ti ce ,

p ar ti cu la rl y, i n t he m at te r t ha t M r. N i ev es h as

suggested, with the incredible load of foreclosure

c as es t ha t t he c ou rt s ys te m i n F lo ri da i s f ac in g - -


J UDG E P OL EN : - - t o k no w t ha t n ot j us t o ne , b ut

p er ha ps d oz en s o r h un dr ed s o f l aw su it s f il ed i n

c ou rt s w it h f ra ud ul en t d oc um en ts a re b ei ng u se d a s a

b as is t o g et f or ec lo su re s a ga in st p eo pl e w ho d on 't

h av e t he b en ef it o f M r. N ie ve s' l aw f ir m t o r ep re se nt

them.


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MS . G ID DI NG S: Y es , s ir , a nd t ha t i s a c on ce rn.

B ut w he n yo u l oo k a t -- t he C ou rt a lw ay s h as

a ut ho ri ty t o c o nt ro l i ts c ou rt ro om . A nd w he n I s ai d

t hi s w as n ot a bo ut t he i nt eg ri ty o f t he C ou rt , w ha t I

m ea nt w as t ha t u nd er t he f ac ts o f t hi s p ar ti cu la r

c as e, t he C ou rt a lw a ys h as r em ed ie s o f h ol di ng

l aw ye rs i n c on te mp t, i t a lw ay s c an r ef er t he m t o t he

F lo ri da B ar . T he re a re o th er r em ed ie s t ha t c a n b e

ta ke n. B ut t he i ss ue i n t h is c as e i s w het he r y o u c a n

take a voluntary dismissal.

A nd I w ou ld l ik e y ou to p ut t hi s in t he c on te xt

of a m ot io n t o v ac ate a fi na l j u dg men t. Wh en y ou

c om e i n a nd a sk t o v ac at e a f in al j ud gm en t, y ou c an 't

j ust s ay f ra ud on t he C ou rt o cc ur re d. Y ou h av e t o

s ay m at er ia l f r au d o n t h e C ou rt o cc ur re d t ha t

r es ul te d i n y ou o bt ai ni ng a ff ir ma ti ve r el ie f. T he

s am e t hi ng w ou ld o cc ur w it h a v ol un ta ry d is mi ss al .

I f t he re w as n o r el ie f o bt ai ne d, t he n y ou c an 't g o

b ac k a nd r eo pe n t ha t c as e.

J UD GE P OL EN : B ut y ou r c l ie nt d id g et r el ie f.

T he y d id n' t h av e t o s ub mi t t o d ep os it io ns .

MS . G ID DI NG S: Y es , s ir , b ut y ou 're - - w el l, we

h av e t he a bs ol ut e r ig ht - - y ou c an a lw ay s a vo id a n

a dv er se r ul in g f ro m t he C ou rt b y t ak in g a v ol un ta ry

dismissal.


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J UD GE P OL EN : B ut y ou c ha ra ct er iz ed t ha t a s t he

is su e o f t he c as e. I d i sa gr ee . I d on 't q ue st io n

t ha t y o u c an t ak e a v ol un ta ry d is mi ss al . T he i ss ue ,

as I s ee i t, i s w he th er a C ou rt , o n s ub se qu ent

information, can strike that dismissal.

MS . GI DD IN GS : Y es , sir , Yo ur H on or . B ut i f

yo u - - a nd I w ou ld c al l to y ou r a tt ent io n t he - - w e

filed a notice of supplemental authority yesterday.

I a po lo gi ze f or t he l at e f il in g o f t ha t n o ti ce. W e

d is co ve re d i t w he n - - a ll t he c as es i nv ol vi ng t hi s

i ss ue a re f ro m t h e ' 8 0s . W e d i sc ov er ed t hi s

particular case yesterday, and we hand-delivered a

c op y t o c ou ns el w ho t ol d m e, b ef or e t he o ra l

a rg um en t, t ha t h e h ad s ee n t he c as e s om e t im e a go .

Y ou r Ho no rs , I w ou ld l ik e t o r ea d t o y ou f ro m

this case. It says, at the bottom of page 6, in the

s er vi ce e xp er ts c as e - -

J UD GE P OL EN : Y ou 'r e t a l ki n g a b ou t s e r vi ce

experts?


At t he b ot to m o f p ag e 6 it s ay s, Un li ke S el ec t

B ui ld er s, t hi s i s n ot a c as e w he re t he p la in ti ff

e ng ag ed i n f ra ud w hi ch r es ul te d i n a ff ir ma ti ve r el ie f

f ro m t he C ou rt , a nd i n o bt ai ni ng t ha t r el ie f

v ol un ta ri ly d is mi ss ed t h e c as e t o p re ve nt t he C ou rt


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f ro m t ak in g t he i l l- go tt en r el ie f. W it ho ut e vi de nc e

o f i ll -g ot te n r el ie f c on ne ct ed t o t he f ra ud

allegation, the defendant's allegations were

i ns uf fi ci en t t o s up po rt s tr ik in g t he n o ti ce o f

v ol un ta ry d is mi ss al o n t he b as is o f f ra ud .

N ow , I t hi nk i t' s v er y, v er y i mp or ta nt f or y ou

t o u nd er st an d t he f ac tu al s it ua ti on i n w hi ch t hi s

o cc ur re d. C ou ns el m o ve d t o d is mi ss t h is c a se . T he y

d id n' t a sk f or a d is mi ss al w it ho ut p re ju di ce . T he y

as ke d f o r a d is mi ssa l. An d b a se d o n l ac k of

s ta nd in g, d ue t o a f ra ud ul en t a ss ig nm en t, a v ol un ta ry

d is mi ss al w as t ak en , a nd t he y d id n ot m ov e t o s tr ik e

t he v ol un ta ry d is mi ss al . T he y d id n ot m ov e f o r

s an ct io ns t o d is mi ss t he c as e w it h p re ju di ce . W ha t

t hey d id w as t he y a sk ed fo r a tt or ne ys f ees . An d

a ft er t he y r ec ei ve d a d et er mi na ti on t ha t t he y w er e

e nt it le d t o a tt or ne ys f ee s, a nd a ft er t he n ew c as e

w as f il ed , t he y s ai d, O h, w el l, w e d on 't w an t t he

C ou rt a dd re ss in g t hi s i n t he s ec on d c as e, w e' re g on na

c ome b ac k h ere to t he f ir st c as e a nd a sk th at i t b e

reopened.

J UD GE F AR ME R: B ut d oe sn 't R ul e 1 . 54 0 a l lo w u p

to a y ea r?

MS . G IDDINGS: Yes, sir , i t does allow up to a

year. But I would suggest to you that there is a


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c as e, D yn as ty E xp re ss C or po ra ti on , t ha t i s c it ed b y

m y o pp on en ts t ha t w as i ss ue d b y t hi s c ou rt i n 1 99 6,

i n w hi ch J ud ge W ar ne r a nd J ud ge P ol en w er e o n t he

pa ne l. A nd t he y s ta te d t ha t a p ar ty h as a n

o bl ig at io n t o r ai se t he i ss ue o f f ra ud a s s oo n a s i s

r ea so na bl y p os si bl e. A nd w ai ti ng u nt il a n ew c as e i s

f il ed f iv e m on th s l at er , t he C ou rt i n t he n ew c as e

c ou ld a dd re ss - - y ou k no w, c an l oo k a t w he th er t hi s

i ss ue s ho ul d b e m at er ia l t o t ha t.

A nd w e a ll - - I t hi nk w e c an t ak e j ud ic ia l

n ot ic e o f t he f ac t t ha t M r. S te rn 's o ff ic e i s b ei ng

t ho ro ug hl y i nv es ti ga te d. B ut I a ls o t hi nk t ha t i t' s

v er y, v er y i mp or ta nt f or y ou t o u nd er st an d , t oo , t ha t

t he a ss ig nm en t o f m or tg ag e i n t hi s c as e i s n ot

ultimately material and determinative in the outcome

of th e c as e, b ec au se it is t he h ol de r o f th e n ot e

t ha t h as - - t he a ss ig nm en t o f m or tg ag e f ol lo ws t he

n ote . A nd i f, on t he d ay t ha t y o u' re b ef or e th e

C ou rt o r w it h y ou r s um ma ry j ud gm en t, y o u s ub mi t t he

n ot e a nd t he n ot e i s e nd or se d i n b la nk o r e nd or se d t o

y ou r c li en t, t he n t he a ss ig nm en t o f m or tg ag e d oe s n ot

control.

S o, t he re a re n um er ou s r ea so ns w hy t he a ll eg ed

f ra ud i n t hi s c as e d oe s n ot i mp ac t t he o ut co me o f

this case. So , e ven if you went back and you --


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J UDG E F A RM ER : W el l, t he y s ur e w en t t o a l ot of

t ro ub le t o m ak e u p a n i ns tr um en t t ha t t he y d id n' t

n ee d t o d o a ny th in g w it h.

MS . G ID DI NG S: W el l, Y ou r H on or, if y ou l oo k at

t he a ll eg at io ns t ha t t he y h av e m ad e, a lm os t a ll o f

t ho se a ll eg at io ns p er ta in t o a d if fe re nt c as e .

T he y' re n ot t hi s p ar ti cu la r c as e. I d on 't k no w w ha t

t ha t d oc um en t - - w ha t o cc ur re d i n t ha t d oc um en t. B ut

I t hi nk t hi s c ou rt i s p ro ba bl y g oi ng t o h av e a n um be r

o f c as es t ha t c om e u p b ef or e i t w he re t ha t i ss ue

i s - - i t m ay b e a t i ss ue i n s ub se qu en t p ro ce ed in gs .

A nd w he n y ou r eo pe n - - i f y ou 'r e g oi ng t o r eo pe n

t ho se c as es , y ou h av e t o m ak e s ur e t ha t y ou 'r e

r eo pe ni ng i t f o r s om et hi ng t ha t i s m at er ia l.

J UDG E F A RM ER : F ra ud on t he C ou rt i s n ot

material?

M S. G ID DI NG S: Y ou r H o no r, f ra ud o n t h e

C ou rt - -

J UD GE F AR ME R: P ub li sh in g f a l se d oc um en ts i s

not material?

MS . G ID DI NG S: F ra ud on t he C ou rt d id n ot o ccu r

i n t hi s c as e.

J UD GE F A RM ER : I t d id n' t.

M S. G ID DI NG S: A d oc um en t w a s f i le d, b ut

n oth in g w as e ve r h ea rd b ef or e t he C ou rt . A nd i f y ou


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l oo k a t t he s er vi ce e xp er t' s c as e - -

J UD GE F AR ME R: L et 's j us t c o nf ro nt t ha t f o r a

m in ut e. I m ea n, t o t h e ex te nt t hat t he c as es t ha t

y ou t al k a bo ut , S el e ct , a nd t he o th er s t al k a bo ut ,

a nd t ha t i s, a c hi ev in g a ff ir ma ti ve r el ie f a nd a ll

t ha t s tu ff , I 'm w on de ri ng i f t he y' re n o t j us t t al ki ng

a bo ut t wo d if fe re nt t hi ng s a s t wo s ep ar at e g ro un ds .

I n o th er w or ds , o bt ai ni ng o r u si ng v ol un ta ry

d is mi ss al a ft er y o u' v e a lr ea dy g ot te n r el ie f i n s om e

w ay m ay b e o ne k in d o f p ie ce o f v ol un ta ry d is mi ss al ,

b ut n ot u nd er a n e nt ir el y s ep ar at e k in d m ay b e f ra ud

o r a tt em pt ed f ra ud o n t he C ou rt .

I do n' t k no w w hy w e w ou ld a do pt a r ul e o f o ur

i nh er en t p ow er s t o d ea l w it h f ra ud i n t he C ou rt , w hy

we wo ul d e ng ag e i n a r ea di ng t ha t sa ys o nl y i f t he

fr au d p ro ve s t o h av e b ee n s uc ce ss fu l. A nd t ha t i s t o

s ay i f t he r ep re se nt ee r el ie d, t o i ts d et ri me nt , o n

t he f ra ud a nd c ha ng ed t he ir p os it io n a n d d id s tu ff ,

o nly t he n w ou ld w e a ll ow r el ie f o f a ny k in d. T ha t

s tri ke s m e a s n ot --

M S. G ID DI NG S: W el l, Y ou r H o no r, l oo k a t t he

s ta nd ar d f or v ac at in g a j ud gm en t. I t d oe sn 't s ay

t ha t y ou c an v ac at e a j ud gm en t i f a ny f ra ud o cc ur re d.

I t s ay s t ha t t he f ra ud m us t b e m at er ia l.

J UDG E F ARM ER : W el l, I t ho ug ht w ha t w e w er e


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d ea li ng w it h h er e w as , r ea ll y, j ur is di ct io n. I

t ho ug ht t he T ri al C ou rt b as ic al ly s ai d t ha t s he h ad

l os t j ur is di ct io n t o c on si de r t hi s c as e b ec au se i t

w as a v ol un ta ry d is mi ss al , a nd , t he re fo re , d i d n ot

receive evidence and wouldn't allow an evidentiary

hearing to proceed.

MS . G I DD IN GS : Y ou r H o no r, if yo u l o ok a t t h e

M il le r c as e f ro m t he F lo ri da S up re me C ou rt , i t s ay s

t he C ou rt h as j ur is di ct io n t o d et er mi ne w he th er i t

ha s j ur is di ct io n t o o pe n t he c as e. A nd i n t hi s c as e,

i f t he C ou rt h ad - - i f t he y h ad o bt ai ne d a ff ir ma ti ve

r el ie f, i f t he y h ad g on e a ll t he w ay t hr ou gh , t hi s

f ra ud w ou ld n ev er h av e b ee n d is co ve re d. A nd t he y

w ent a ll t he w ay an d g ot a j ud gm ent . An d t he n a ft er

t he j ud gm en t w as o bt ai ne d a nd t he f ra ud w as

d is co ve re d l at er , y ou c ou ld n ot g o b ac k a nd v ac at e

t ha t j ud gm en t u nl es s t he f ra ud w as r el ev an t t o t he

affirmative relief that they obtained.

J UD GE F AR ME R: A nd a f al se a ss ig nm en t w ou ld n ot

have been relevant?

MS . G I DD IN GS : I t w o uld d ep en d o n t he

individual circumstances.

J UDG E F A RM ER : S o, w hy do n' t w e n ee d a n

e vi de nt ia ry h ea ri ng i n t hi s c as e? W hy d on 't w e n e ed

a t ri al j ud ge t o g o t hr ou gh ( a) i f t he re wa s a f ra ud ,


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a nd ( b) w ha t i ts e ff ec ts w er e?

M S. G ID DI NG S: B ec au se t he re w as n o a ff ir ma ti ve

r el ie f o b ta in ed i n t h is c as e, Y ou r H o no r. A nd , i n

f ac t, t he r el ie f w as t ha t M r. P in o h as b ee n l iv in g i n

t he h ou se f or a l on g t im e, a pp ar en tl y w it ho ut m ak in g

any payments.

A nd I u nd er st an d y ou r c on ce rn s , Y ou r H on or .

B ut I 'm u rg in g y ou t o c on si de r t hi s c as e i n t he g ra nd

s ch em e o f t hi ng s. I f y o u a l lo w c o urt s to go b ac k a n d

o pen u p a ll of t hes e c as es , w he n i t' s c le ar o n t he

f ac e t ha t t he re w a s n o a ff ir ma ti ve r el ie f o bt ai ne d,

o r t ha t t he a ff ir ma ti ve r el ie f w ou ld n o t h av e b ee n

m at er ia l, t he n y ou 'r e g oi ng t o c re at e c ha os i n t he

court system.

J UD GE F AR ME R: S o, a re y ou s ug ge st in g t ha t t h is

f ra ud h as b ee n t ha t w id es pr ea d t ha t i t - -

M S. G ID DI NG S: Y ou r H o no r, I 'm n ot

a ck no wl ed gi ng t ha t a ny f ra ud o cc ur re d. I t hi nk t ha t

there is -- we all know --

J UDG E F ARM ER : W hy w ou ld w e s hr in k - - a s a

c ou rt s ys te m, w hy w ou ld w e s hr in k, n o m at te r h ow m an y

c as es i t m ig ht i nv ol ve , f ro m l oo ki ng o u t f or a tt em pt s

t o d ef ra ud c ou rt s t o p ub li sh a nd u tt er a nd u se f al se

i ns tr um en ts ? W hy w ou ld n 't w e b e m os t v i g il an t?

MS . G ID DI NG S: A nd , Y ou r H on or , I t hi nk t ha t if


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M S. G ID DI NG S: T he y' ve a lr ea dy b ee n a w a rd ed

a tt or ne ys f ee s i n t he f ir st c as e, Y ou r H on or .

J UD GE W AR NE R: O h, t h ey w er e?

M S. G I DD IN GS : Y es , m a' am .

J UD GE W AR NE R: A ft er t he v ol un ta ry d is mi ss al ?

MS . G I DD IN GS : T ha t' s w h y I s ai d wh en t he

v ol un ta ry d is mi ss al w as t ak en , t he y m ov ed f or

a tt or ne ys f ee s. T he y a ck no wl ed ge d t he v ol un ta ry

d is mi ss al w as w it ho ut p re ju di ce . T he y a sk ed f or a

m ul ti pl ie r a wa rd b as ed o n t he f ac t t ha t t he y h ad

f or ce d B an k o f N ew Y or k t o f il e i nv ol un ta ri ly

d is mi ss al s. T he y t oo k n o a ct io n a sk in g - -

J UDG E F ARM ER : H ow d id t he y k n ow th ey w er e

g oi ng t o r ef il e?

M S. G ID DI NG S: P ar do n?

J UDG E F ARM ER : H ow d id t he y k no w th at B NY w as

g oi ng t o r e fi le ? W hy w er en 't t he y e n ti tl ed t o

a ss um e, b ec au se t he y h ad m ov ed t o d is mi ss , p er io d,

t hat t ha t w ou ld b e t he e nd o f t he c la im ?

M S. G ID DI NG S: W el l, Y ou r H o no r, i f t h at w as

t he c as e, t he y s ho ul d h av e a sk ed t o d is mi ss w it h

prejudice.

J UDG E FA RM ER : I s ee .

J UD GE W AR NE R: I f t he v ol un ta ry d is mi ss al

d iv es ts t he C ou rt o f j ur is di ct io n, h ow d id t h e C ou rt


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of jurisdiction award attorneys fees?

M S. G ID DI NG S: B ec au se a tt or ne ys f ee s w o u ld

h av e b ee n c ol la te ra l, Y ou r H on or .

A nd I 'l l b e h ap py t o a dd re ss t ha t i ss ue t hr ou gh

s up pl em en ta l b ri ef in g, i f t he C ou rt w ou ld l ik e. B ut

I t hi nk t ha t t ha t' s p ro ba bl y a n i ss ue t ha t w il l c om e

up be fo re t he C ou rt - - i t c ou ld c om e u p b ef or e t he

C ou rt o nc e t h er e' s a f in al j ud gm en t. I t' s m y

understanding that the entitlement to attorneys fees

h as b ee n d et er mi ne d, b ut a n e vi de nt ia ry h ea ri ng - -

J UDG E W ARN ER : I n t h e f ir st c as e?

M S. G ID DI NG S: I n t h e f i rs t c a se , Y o ur H on or .

J UD GE W AR NE R: S o, t he re 's s om e c o nt in ui ng

j ur is di ct io n t o d o t he se t hi ng s i n t he f ir st c as e.

M S. G ID DI NG S: W el l, Y ou r H o no r, I b el ie ve a

Court always has continuing jurisdiction to determine

a tt or ne ys f ee s i n a c as e w he n i t' s c ol la te ra l t o - -

J UD GE F AR ME R: S o, u si ng t he se j ur is di ct io na l

n ot io ns , w il l j ea lo us r eg ar d t he r ig ht o f a tt or ne ys

t o g et f ee s, b ut n ot p ro te ct a ga in st f ra ud o n t he

Court?

M S. G ID DI NG S: Y ou r H o no r, t ha t' s n o t w ha t I ' m

s ay in g. I 'm j us t t el li ng Y ou r H on or s w ha t o cc ur re d

in th is c as e. T he r e co rd s - -

J UDG E F ARM ER : M ay be we s ho ul d c le ar u p t he l aw


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i n t ha t r eg ar d.

M S. G ID DI NG S: Y ou r H on or , I w ou ld s ug ge st t ha t

if yo u' re g oi ng t o h ol d t ha t y ou d on 't h av e t o h av e

a ff ir ma ti ve r el ie f i n a c as e, t ha t y ou ' re g oi ng t o

h av e t o c er ti fy c on fl ic t w it h t he s er vi ce e xp er t' s

c as e t ha t w as i ss ue d f ou r w ee ks a go .

J UD GE P OL EN : U nl es s i t' s d is ti ng ui sh ab le .

M S. G ID DI NG S: P ar do n?

J UD GE P OL EN : U nl es s i t' s d is ti ng ui sh ab le .

M S. G ID DI NG S: W el l, Y ou r H on or , I w ou ld a ss er t

t ha t t ha t c as e i s o n a ll f ou rs w it h t hi s c as e.

J UD GE P OL EN : I s ee a n um be r o f d is ti ng ui sh in g

f ac to rs , m os t i mp or ta nt o f w hi ch t he a ll eg ed f ra ud

t ha t o cc ur re d i n t ha t c as e p er ta in ed t o t wo

a ff id av it s w hi ch w er e f il ed b y t he a pp el le e w hi ch t he

appellant suggested were fraudulent in furtherance of

a m ot io n f or s um ma ry j ud gm en t, b ut o nl y b ec au se

they're contesting the factual allegations and

a pp ar en t i nc on si st en ci es t ha t m ay h av e e xi st ed i n

those affidavits.

N ow , t ha t m ay b e c on si de re d s om e k in d o f f ra ud .

Bu t i t' s n ot t he k in d o f f ra ud o n t he C ou rt t ha t

w ou ld b e i f t he a pp el la nt h er e c ou ld p ro ve t he ir

a ll eg at io ns , w h er e d oc um en ts f il ed i n s up po rt o f a

mortgage foreclosure proceeding were fraudulently


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th e s a me a s w h en yo u g et a j ud gm ent . Th e C ou rt l os es

j ur is di ct io n o ve r t ha t j ud gm en t a ft er t he t im e f or

a pp ea l h as r un o r t he t im e f or r eh ea ri ng , b ut t he

judge still has jurisdiction for collateral issues

regarding attorneys fees.

J UD GE W AR NE R: T o e n te r a n y t y pe o f j u dg me nt

a ls o, y ou w ou ld h av e 1 .5 40 (b ) r el ie f, w hi ch i s w ha t

they're asking for.

M S. G I DD IN GS : Y es , m a' am .

J UD GE F AR ME R: A nd a j ud gm en t i s a j ud gm en t,

n ot a v ol un ta ry d is mi ss al . T he C ou rt i sn 't b ei ng

i nv ol ve d i n t he j ud gm en t. T he C ou rt h as a ct ua ll y

e nt er ed a j ud gm en t b as ed o n s om et hi ng t ha t c am e i n

f ro nt o f t he m.

MS . GI DD IN GS : Y es , Yo ur H on or . An d I w ou ld

s ay t ha t g oi ng f or wa rd w it h t he f ra ud a nd o bt ai ni ng a

j ud gm en t, i f y o u c an no t v ac at e t ha t j ud gm en t u nl es s

t he f ra ud g oe s t o t he h ea rt o f t he j ud gm en t, t he n y ou

c ou ld n ot d o s o w it h a v ol un ta ry d is mi ss al w he n t he re

was no affirmative relief obtained.

J UD GE W AR NE R: W el l, i f y ou 'r e s ay in g t he y' re

g et ti ng f ee s b ec au se t he y w er e a p re va il in g p ar ty o r

something, then --

J UDG E F ARM ER : T he n t he c as e w a s ov er .

J UD GE W AR NE R: W el l, n ot o nl y - - b u t, c le ar ly ,


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t ha t' s a d ec is io n t ha t h as t o r el at e s om eh ow t o a

d ec is io n o n m er it s, i .e . , t ha t t he y w ou ld b e

s uc ce ss fu l i n s ho wi ng t ha t t hi s w as f ra ud , a nd i t w as

material and everything else.

M S. G ID DI NG S: N o, n o, Y ou r H o no r, t he y a s ke d

f or a d is mi ss al b as ed o n - - w ha t t he y w er e a sk in g f or

wa s a d is mi ss al b as ed o n l ac k o f s ta ndi ng . T he y d id

n ot a sk f or a d is mi ss al w it h p re ju di ce b as ed o n a

s an ct io n. T he y s i mp ly s ai d t ha t o ur c li en t h a d n ot

established --

J UD GE W AR NE R: I k no w, b ut y ou v ol un ta ri ly

d is mi ss ed i t. T he n t he y c o me i n a n d a s k f or

a tt or ne ys f ee s o n w ha t b as is ?

M S. G ID DI NG S: O n a p re va il in g p ar ty b as is .

J UD GE W A RN ER : U nd er c o nt ra ct ?

M S. GI DD IN GS : Y es .

J UD GE W AR NE R: B ut i f y ou v ol un ta ri ly d is mi ss

i t, a re y ou e nt it le d t o s ee k y ou r c on tr ac tu al f ee s?

I t ho ug ht t ha t y ou 'r e s tu ck , a re n' t y ou ?

MS . G ID DI NG S: Y ou r H on or, I c an 't s pe ak t o t he

v al id it y o f t he o rd er d et er mi ni ng e nt it le me nt a t t hi s

p oi nt i n t he p ro ce ed in g. T ha t m ig ht b e b ef or e t hi s

C ou rt - -

J UD GE W AR NE R: W el l, I 'm j us t s ay in g t h at s he

s ai d s he d oe sn ' t h av e j ur is di ct io n a nd t he n s he d oe s


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h ave j ur is di ct io n. S o, ho w c an i t b e b oth w ay s?

M S. G ID DI NG S: B ec au se y ou a lw ay s h av e

jurisdiction over collateral issues.

J UDG E W ARN ER : B ut i f i t 's a v ol un ta ry

d is mi ss al , w ha t c ol la te ra l i ss ue s w ou ld t he re b e?

M S. G ID DI NG S: A cc or di ng t o t he I ce L eg al f ir m,

t he i ss ue s a re t ha t t he y w er e t he p re va il in g p ar ty ,

a nd t ha t' s h ow t he y s ou gh t t he f ee s, b ec au se t he y

successfully convinced our client to voluntarily

dismiss the case.

A nd , Y ou r H on or s, I u nd er st an d y ou r c on ce rn s.

I d o - -

J UDG E F A RM ER : L et m e a sk yo u t o su m u p b ec au se

y ou 'r e w el l o ve r a nd y ou 'v e c on su me d a l ot o f t im e.

G o a he ad a nd f i ni sh y ou r t ho ug ht .

M S. G ID DI NG S: Y es , Y o ur H on or .

I j us t w ou ld l ik e t o r ei te ra te t o t hi s C ou rt

t ha t t he re a re a ny n um be r o f r ea so ns f or a ff ir mi ng

t his c as e: T he d el ay i n b ri ng in g t he m ot io n to

v ac at e t he d is mi ss al ; t h e f ac t t ha t t he s ec on d s ui t

h as b ee n f il ed , a nd t he C ou rt c an c on si de r t hi ng s i n

t hat s ui t; a nd I d o n ot b el ie ve t ha t t he f ra ud w as - -

if an y f ra ud d id o cc ur, wh ic h w e d o n ot k no w at t hi s

p oi nt w he th er i t d id , t ha t i t' s n ot m at er ia l.

J UD GE F AR ME R: T ha nk y ou v er y m uc h, C ou ns el .


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Mr. Nieves.

MR . N IE VE S: Y ou r H on or , j us t to be gi n, t o

a dd re ss t he a tt or ne ys f ee s i ss ue - -

J UDG E F ARM ER : I 'm g oi ng t o g i ve yo u a t l ea st

three minutes.

M R. N IE VE S: O ka y, t ha nk y ou , Y o ur H on or .

We h av e t o m ov e w it hi n 3 0 da ys o f a v ol un ta ry

d is mi ss al , b y r ul e. T ha t' s s om et hi ng w e j us t h av e t o

do .

J UD GE F AR ME R: 1 .5 25 ?

MR . N IE VE S: I t h as n ot hi ng t o d o w it h t he

i ss ue s h er e. A ny d e la y i s to ta ll y i rr el ev an t. A nd

a s f ar a s a sk in g f or a m ul ti pl ie r, w e c er ta in ly h av e

d if fe re nt c li en te le t ha n A ke rm an . S o, w e h av e t o

f in d o th er w ay s t o t ak e s om e o f t he se c as es w he re w e

ca n't t hr ow as m uc h m on ey i nt o i t a s A ke rm an . A nd I

g ue ss t ha t' s w ha t I 'l l s ay a bo ut t ha t.

A nd a s f ar a s s er vi ce e xp er ts , I di d l oo k

t hr ou gh t he c as e, a nd o ne - - f ir st , i t' s n ot f in al

s ubj ec t t o r ev is io n. A nd e ve n i f i t i s f in al , w ha t

i t h el d w as t he c om mo n l aw e xc ep ti on t o s tr ik e

i nv ol un ta ry d is mi ss al d i d n o t a pp ly . A ny th in g a bo ut

fr au d w as d ic ta . A nd i f y ou r ea d t he o pin io n, t he y

s ay r ig ht i n t he b eg in ni ng w ha t t he y' re r ul in g o n.

T he y' re r ul in g o n t he c om mo n l aw e xc ep ti on .


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N ow , w he n t he y d o t al k a bo ut f ra ud , y ou c an

also distinguish that, and it's distinguishable,

b ec au se t he a ff id av it s w er e f il ed i n r es po ns e t o a

57 .10 5 m ot io n. I t d id n ot a pp ly t o a ll t he c la im s.

In ot he r w or ds , f or t he Co ur t, i t w as j ust n ot a b ig

p art o f t he c as e. H er e, w e' re t alk in g a bo ut -- i f

yo u l oo k a t t he T ay lo r c as e f ro m t he F if th D CA, t he

a ss ig nm en t i s p ar am ou nt . T hi s i s t he ir e vi de nc e.

A nd t he ir o nl y b it o f e vi de nc e t o p ro ve t he ir c as e,

they manufactured it.

A nd a s f ar a s o ur c li en t n ot p ay in g t he - -

u su al ly w he n t he y a cc el er at e, t he y d on ' t a cc ep t

p ay me nt s a ny wa y. W e h av en 't b ee n n ot if ie d t ha t t he y

w er e r ei ns ta ti ng t he l oa n o r a ny th in g l ik e t ha t. A nd

g en er al ly , w ha t t he y d o i s t he y d on 't a cc ep t

p ay me nt s. A nd i f t h ey d o a c ce pt t he m, t he y a c ce pt

t he m o n a t ri al m od if ic at io n, w hi ch t he y u su al ly

don't grant anyway.

J UD GE F AR ME R: I f t he y a cc ep t t he p ay me nt , t h ey

w ai ve t he a cc el er at io n; i s t ha t w ha t y o u' r e s ay in g?

MR . N IE VE S: W el l, I 'm no t e ve n g e tt in g t o

t ha t. I 'm j us t s a yi ng t he y d o n' t a c ce pt i t.

J UD GE F AR ME R: T ha t' s t h ei r a r gu me nt .

MR . N IE VE S: A nd a s f ar as t hi s a bs ol ut e r ig ht,

w e' ve b ee n t al ki ng t h e w ho le t im e a bo ut f ra ud


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e xc ep ti on . I t' s b ee n r ec og ni ze d. A nd e ve n t he c a se s

t ha t a re d is ti ng ui sh ed a nd u se d a s a ff ir ma ti ve

r el ie f, n on e o f t he m d ea lt w it h f ra ud . B ev an d ea lt

w it h l a ck o f p r os ec ut io n. R om ar w as a c as e w h er e

t he re w as a d ep os it io n s et , a nd I b el ie ve n ob od y

s ho we d, a nd t he y w er e g oi ng t o g et t he ir c os t a nd

f ee s f or t ha t, a nd t he y v ol un ta ri ly d is mi ss ed .

N on e o f t he se c as es d ea lt wi th f ra ud . E ve n t he

s er vi ce s w hi ch I a lr ea dy s po ke o f w as t he y h ad t o

c on si de r i t a w ri t o f p ro hi bi ti on . It w as k in d o f a

d if fe re nt p os tu re . B ut e ve n t ha t b ei ng s ai d, a ny

a ll eg ed f ra ud t he re d id n 't h av e a ny th in g, r ea ll y, t o

do wi th t he c la im s. A nd a s f ar a s f in al it y b ei ng a

f ac to r i n a ny o f t he se c as es , i t' s n ot . Th ey 'r e

a lw ay s g o in g t o r ef il e. T he o nl y p u rp os e i n

v ol un ta ri ly d is mi ss in g i s t o u se i t a s a s hi el d t o

c ov er u p t he f ra ud .

A nd a s f ar a s b ei ng m or e c as es , t he re w il l b e

t he o ri gi na l c as e , t h e f ra ud ul en t c as e , t h e r ef il ed

s ec on d c as e, t h e p ot en ti al c la im s a ga in st t he

p la in ti ff a s f a r a s a ny bo dy w ho 's b ee n w ro ng ed ,

f or ec lo su re s, a ny th in g l i k e t h a t. T he se c an k ee p

c om in g b ac k. I t' s s om et hi ng t ha t w e' re b et te r s er ve d

b y a ll ow in g o ur j ud ge s t o d ea l w it h i t r ig ht i n t ha t

c ase . A nd a s f ar as h an dl in g t h e s e co nd ca se , o f


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c ou rs e w e w ou ld r ai se t he i ss ue i n t he s ec on d c as e.

Bu t i t h ap pe ne d i n t hi s c as e. A nd t ho se c as es - -

J UD GE W AR NE R: I f y ou 'r e o bt ai ni ng - - y ou 'r e

s ay in g t ha t i n t hi s c as e y ou d id r ec ei ve y ou r

a tt or ne ys f ee s, o r y o u a re r ec ei vi ng a tt or ne ys f ee s

as pr ev ai li ng p ar ty. B ut y ou w an t t o s tr ik e --

MR . N IE VE S: I 'l l t el l y ou t he t ru th , I d o n ot

know. I just know that the rule -- I know that we

h ave t o m ov e w it hi n 3 0 d ay s. I 'm n ot s ure I d id n' t

w ork o n a ny of t he a tt or ne ys f ee s m ot io n. S o, I 'm

n ot p ri vy t o t ha t.

J UD GE W AR NE R: O ka y.

J UD GE F AR ME R: W as n' t i t j us t a n o rd er a ll ow in g

e nt it le me nt a nd s et ti ng a f ee ? Y ou d on 't k no w.

M R. N IE VE S: I 'm p re tt y s ur e e nt it le me nt w as n' t

e ven d is pu te d. T he re 's c as e l aw w he re if y ou t ak e a

voluntary dismissal, you're clearly not the

prevailing party.

JUDGE FARMER: Do you want to bring it to a

close? I'll give you a minute to sum it up.

MR . N IE VE S: A nd a s f ar as a ny j ur is di ct io n

a rg um en ts , t he C ou rt r el ie d o n t he B ev an c as e , w hi ch

is clearly distinguishable.

T o s um e ve ry th in g u p, i f t hi s C ou rt a ff ir ms t he

T ri al C ou rt , i t 's b as ic al ly s ay in g t ha t i t 's o ka y t o


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C E R T I F I C A T E

I, Lucille Huttle, Registered Professional

R ep or te r, S ta te o f F lo ri da a t L ar ge , c er ti fy t ha t I w as

a ut ho ri ze d t o a n d d id s te no gr ap hi ca ll y r ep or t t he

f or eg oi ng p ro ce ed in gs a nd t ha t t he t ra ns cr ip t i s a t ru e

a nd c om pl et e r ec or d o f m y s te no gr ap hi c n ot es .

D at ed t hi s 1 0t h d ay o f N ov em be r, 2 01 0.

____________________________

L UC IL LE H UT TL E, R P R, F PR

fl 4th dca pino v. the bank of new york mellon oral arguments transcript

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