Tuesday, June 4, 2013

Florida Supremes Kibosh Local Ordinance That Would Have Given Municipal Liens 'Superpriority' Status Over Mortgages, Even If Latter Were Earlier-Recorded

In Tallahassee, Florida, The Florida Current reports:

  • A local Palm Bay ordinance giving municipal liens on property superiority over mortgages was struck down Thursday by the Florida Supreme Court. However, a bill headed to Gov. Rick Scott’s desk could give local governments more power to address municipal liens.

    The court upheld a 5th District Court of Appeal decision nullifying the ordinance, which states that Palm Bay’s liens on a property rank higher than a mortgage lien, even if the mortgage was entered into before the municipal lien. In a 5-2 decision, the court stated state laws preempt such local ordinances.

    “Giving effect to the ordinance superpriority provision would allow a municipality to displace the policy judgment reflected in the Legislature’s enactment of the statutory provisions,” the ruling penned by Justice Charles Canady states. “A more direct conflict with a statute is hard to imagine.”

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