Senate Bill 1506

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    Florida Senate - 1999                                  SB 1506

    By Senator Campbell





    33-860A-99

  1                      A bill to be entitled

  2         An act relating to judicial proceedings;

  3         amending ss. 48.194, 49.021, F.S.; providing

  4         that personal service on a party outside the

  5         United States is unnecessary in certain

  6         foreclosure proceedings; amending s. 702.01,

  7         F.S.; providing that in mortgage foreclosure

  8         proceedings a guardian ad litem must not be

  9         appointed unless it appears in the public

10         records that a defendant is deceased or

11         incompetent or that the interest of minors or

12         heirs are involved; amending s. 687.06, F.S.;

13         providing that it is unnecessary for the court

14         to adjudge attorney's fees to be reasonable in

15         proceedings to enforce a note or mortgage when

16         the note or mortgage provides for the award of

17         reasonable attorney's fees; providing an

18         effective date.

19

20  Be It Enacted by the Legislature of the State of Florida:

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22         Section 1.  Subsection (5) is added to section 48.194,

23  Florida Statutes, to read:

24         48.194  Personal service outside state.--

25         (5)  It is unnecessary to obtain personal service on a

26  party outside the United States when in-rem or quasi in-rem

27  relief is sought in a foreclosure proceeding as defined in s.

28  702.09. A party may choose to serve process under this section

29  without being required to show that personal service could not

30  be had.

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    Florida Senate - 1999                                  SB 1506
    33-860A-99




  1         Section 2.  Section 49.021, Florida Statutes, is

  2  amended to read:

  3         49.021  Service of process by publication, upon whom.--

  4         (1)  Where personal service of process or, if

  5  appropriate, service of process under s. 48.194 cannot be had,

  6  service of process by publication may be had upon any party,

  7  natural or corporate, known or unknown, including:

  8         (a)(1)  Any known or unknown natural person, and, when

  9  described as such, the unknown spouse, heirs, devisees,

10  grantees, creditors, or other parties claiming by, through,

11  under, or against any known or unknown person who is known to

12  be dead or is not known to be either dead or alive;

13         (b)(2)  Any corporation or other legal entity, whether

14  its domicile be foreign, domestic, or unknown, and whether

15  dissolved or existing, including corporations or other legal

16  entities not known to be dissolved or existing, and, when

17  described as such, the unknown assigns, successors in

18  interest, trustees, or any other party claiming by, through,

19  under, or against any named corporation or legal entity;

20         (c)(3)  Any group, firm, entity, or persons who operate

21  or do business, or have operated or done business, in this

22  state, under a name or title which includes the word

23  "corporation," "company," "incorporated," "inc.," or any

24  combination thereof, or under a name or title which indicates,

25  tends to indicate or leads one to think that the same may be a

26  corporation or other legal entity; and

27         (d)(4)  All claimants under any of such parties.

28

29  Unknown parties may be proceeded against exclusively or

30  together with other parties.

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    Florida Senate - 1999                                  SB 1506
    33-860A-99




  1         (2)  It is unnecessary to obtain personal service on a

  2  party outside the United States when in-rem or quasi in-rem

  3  relief is sought in a foreclosure proceeding as defined in s.

  4  702.09. A party may choose to serve process under this section

  5  without being required to show that personal service could not

  6  be had.

  7         Section 3.  Section 702.01, Florida Statutes, is

  8  amended to read:

  9         702.01  Equity.--All mortgages shall be foreclosed in

10  equity.  In a mortgage foreclosure action, the court shall

11  sever for separate trial all counterclaims against the

12  foreclosing mortgagee.  The foreclosure claim shall, if tried,

13  be tried to the court without a jury. A guardian ad litem must

14  not be appointed unless it affirmatively appears in the public

15  records in the county where the foreclosure process is

16  commenced that a defendant is deceased or incompetent or that

17  the interests of minors or heirs are involved.

18         Section 4.  Section 687.06, Florida Statutes, is

19  amended to read:

20         687.06  Attorney's fee in enforcing nonusurious

21  contracts; proviso; insurance premiums; attorney's fee

22  provided in note.--This chapter shall not be so construed as

23  to prevent provision for the payment of such attorney's fees

24  as the court may determine in cases brought before the court

25  to be reasonable and just for legal services rendered in

26  enforcing nonusurious contracts, either at law or in equity.

27  This chapter shall not be construed so as to prohibit

28  mortgagees from contracting for or collecting premiums for

29  insurance actually issued on the property mortgaged, with the

30  usual loss payable or mortgage clause attached thereto;

31  provided further, that it shall not be necessary for the court

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    Florida Senate - 1999                                  SB 1506
    33-860A-99




  1  to adjudge an attorney's fee, provided in any note or other

  2  instrument of writing, to be reasonable and just, when such

  3  fee does not exceed 10 percent of the principal sum named in

  4  said note, or other instrument in writing. When a note or

  5  mortgage provides for the award of reasonable attorney's fees,

  6  whether or not there is any reference to a specific percentage

  7  in the note or mortgage, it is unnecessary for the court to

  8  adjudge attorney's fees to be reasonable and just when such

  9  fees do not exceed 3 percent of the original principal sum

10  stated in the note or other instrument, and such amount shall

11  be considered to be liquidated damages in any proceedings for

12  the enforcement of the note or mortgage.

13         Section 5.  This act shall take effect July 1, 1999.

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16                          SENATE SUMMARY

17    Provides that personal service on a party outside the
      United States is unnecessary in certain foreclosure
18    proceedings. Provides that in mortgage foreclosure
      proceedings a guardian ad litem must not be appointed
19    unless it appears in the public records that a defendant
      is deceased or incompetent or that the interest of minors
20    or heirs are involved. Provides that it is unnecessary
      for the court to adjudge attorney's fees to be reasonable
21    in proceedings to enforce a note or mortgage when the
      note or mortgage provides for the award of reasonable
22    attorney's fees.

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