First Federal Savings & Loan Assn. of Miami v. Fisher

In September 1939, Freda and Porter Fisher Sr. divorced. The final divorce decree and property settlement established that if Porter Sr. died or remarried, his interest in the house would be conveyed to his son, Porter Jr. (plaintiff). The divorce decree also provided that Freda and Porter Jr. would retain possession of the house. The divorce decree was recorded in Dade County, Florida, which is also where the house was located. Approximately three months later, Porter Sr. remarried. In July 1946, Porter Sr. and his new wife executed and delivered a $10,400 promissory note and mortgage on the house to First Federal Savings and Loan Association of Miami (First Federal) (defendant). In February 1949, First Federal filed a foreclosure action against Porter Sr.’s $10,400 mortgage. A judgment of foreclosure was entered, and the house was conveyed to First Federal. In June 1950, Freda filed an action seeking enforcement of the divorce decree. The court ordered the conveyance of the house, and Porter Sr. and his new wife executed a deed conveying the house to Porter Jr. In August 1951, Porter Jr. filed a quite-title action, alleging that First Federal had a subordinate interest to Porter Jr.’s interest. Porter Jr. contended that First Federal had constructive knowledge of his interest in the home because the provision contained in the recorded divorce decree would have been easily discoverable had First Federal conducted a records search. Porter Jr. further noted that both he and Freda openly and adversely possessed the house at all times relevant to First Federal’s interest. The lower court canceled Porter Sr.’s deed to First Federal, finding that Porter Jr.’s interest created a cloud on title. First Federal filed an appeal.