Alexander Appellate Law Obtains Reversal in Orlando Appeal on Issue of Partial Satisfaction of Mortgages

Last week, the Fifth District Court of Appeal, reviewing a case from the circuit court in Orlando, agreed with our argument that section 701.04(2), requiring satisfactions of fully paid mortgages, does not require a party to provide a partial satisfaction of mortgage – even when the promissory note held by that party is fully paid.

This case involved an unlikely scenario – the amount owed on the mortgage was split between two parties over two notes. When our Orlando client’s note was paid off, the mortgagor demanded partial satisfaction under section 701.04(2). When our client told the mortgagor he was unable to unilaterally cancel the mortgage under section 701.04, the mortgagor sued to quiet title and obtained summary judgment, including an award of attorney’s fees.

On appeal, the Fifth DCA reversed the judgment and award of fees, ruling that section 701.04(2) requires satisfaction only if the entire amount owed on a mortgage is fully paid. The case was remanded back to circuit court in Orlando, in favor of our client.

You can read the opinion here: Richeson v. South’s Custom Construction, Inc., 5D20-1496 (April 23, 2021)