PERRY, J.
The Bank of New York Mellon Corporation ("BNY Mellon" or "the bank") seeks review of the decision of the Fourth District Court of Appeal in Condominium Ass'n of La Mer Estates, Inc. v. Bank of New York Mellon Corp., 137 So.3d 396 (Fla. 4th DCA 2014), which certified conflict with Southeast Land Developers, Inc. v. All Florida Site & Utilities, Inc., 28 So.3d 166 (Fla. 1st DCA 2010), and Moynet v. Courtois, 8 So.3d 377 (Fla. 3d DCA 2009), on the issue of whether a default judgment is void when the complaint upon which a judgment is based on fails to state a cause of action. We have jurisdiction. See art. V, § 3(b)(3), Fla. Const. For reasons provided below, we hold that a default judgment is voidable, rather than void, when the complaint upon which the judgment is based on fails to state a cause of action. We therefore approve the decision of the Fourth District in La Mer Estates and disapprove of the conflict cases to the
The Fourth District Court of Appeal summarized the case and underlying facts as follows:
La Mer Estates, 137 So.3d at 397-98 (internal citations omitted). The Condominium Association of La Mer Estates appealed to the Fourth District Court of Appeal the order that vacated the final judgment.
The Fourth District reversed the order and remanded for the final judgment's reinstatement. In doing so, the district court followed this Court's precedent and receded from its own caselaw that adopted from the Third District the principle that a
Construing and interpreting the Florida Rules of Civil Procedure and a trial court's inherent authority to protect judicial integrity in the litigation process is a pure question of law, subject to de novo review. Pino v. Bank of N.Y., 121 So.3d 23, 30-31 (Fla.2013). We agree with the Fourth District that a default judgment, which is based on a complaint that fails to state a cause of action, is voidable, rather than void. See La Mer Estates, 137 So.3d at 400. As we have previously stated:
Curbelo v. Ullman, 571 So.2d 443, 445 (Fla.1990).
First, the Fourth District properly recognized that the modern rules of civil procedure, and particularly Florida Rule of Civil Procedure 1.540(b), do not displace this Court's prior caselaw that defines a judgment that is void. See Curbelo, 571 So.2d 443; State ex rel. Coleman v. Williams, 147 Fla. 514, 3 So.2d 152 (1941); Malone v. Meres, 91 Fla. 709, 109 So. 677 (1926). Indeed, the purpose of rule 1.540(b) as recognized by this Court is to provide an exception to the rule of absolute finality by allowing relief under a limited set of circumstances. See Bane v. Bane, 775 So.2d 938, 941 (Fla.2000) (quoting Miller v. Fortune Ins. Co., 484 So.2d 1221, 1223 (Fla.1986)).
Second, failure to state a cause of action is a specific defense recognized by Florida Rules of Civil Procedure 1.140(b) and (h)(1) and (2). Rule 1.140(h) specifically provides in relevant part:
Fla. R. Civ. P. 1.140(h). If a party is properly notified of pending proceedings, that party has the opportunity to raise a defense, such as failure to state a cause of action, in an answer, at trial, or at any time prior to final judgment. Otherwise, that defense is deemed waived. Fla. R. Civ. P. 1.140(h)(1).
In Southeast Land Developers and Moynet, the subject complaints failed to state a cause of action. Se. Land Developers, 28
The Fourth District correctly noted that Becerra never explicitly states that a default judgment based on a complaint that fails to state a cause of action is void, La Mer Estates, 137 So.3d at 399, even though Southeast Land Developers and Moynet cited to Becerra for that precise principle. In addition, Southeast Land Developers and Moynet failed to demonstrate how rule 1.540(b) replaces this Court's precedent that defines a judgment as void.
In the present case, BNY Mellon was properly notified of the proceedings, the hearing on final judgment, and the entry of the final judgment. Id. at 400. Indeed, BNY Mellon was twice notified of the default judgment and failed to respond or appear at any hearings. As such, the bank had ample opportunity to raise the failure to state a cause of action either in an answer or at any time prior to final judgment pursuant to the Florida Rules of Civil Procedure and did not do so. Thereafter, the bank "could have raised the issue on direct appeal," but similarly elected not to do so. Id. at 401.
Thus, the Fourth District properly reversed the trial court's order that rendered the default judgment in the present case void. Because we agree that the default judgment was voidable, Florida Rule of Civil Procedure 1.540(b) was not applicable, and therefore the default judgment could not be collaterally attacked one and one-half years later when BNY Mellon finally decided to respond. See Coleman, 3 So.2d at 152-53 ("We do not think the judgment in this case was void. The declaration had been upheld by the trial court and final judgment was entered on the verdict of the jury after due notice and every opportunity the law affords was given the defendants to amend, plead, or offer their defense. They did not appear and let the time pass in which writ of error is available to them.").
Accordingly, we approve the Fourth District's decision in La Mer Estates and disapprove Southeast Land Developers and Moynet to the extent that these cases are inconsistent with this decision.
It is so ordered.
LABARGA, C.J., and PARIENTE, QUINCE, CANADY, and POLSTON, JJ., concur.
LEWIS, J., dissents with an opinion.
LEWIS, J., dissenting.
I cannot agree with the majority. I would accept and apply the well-reasoned principle of law that a default admits or establishes liability only as claimed and set forth in the pleading of the party seeking affirmative relief. Defaults operate to admit only well pleaded allegations which would support the relief requested. A default does not admit or establish facts not pleaded, not properly pleaded, or conclusions as opposed to facts. See N. Am. Accident Ins. Co. v. Moreland, 60 Fla. 153, 53 So. 635, 637 (1910); Bd. of Regents v. Stinson-Head, Inc., 504 So.2d 1374, 1375 (Fla. 4th DCA 1987); Williams v. Williams, 227 So.2d 746, 748 (Fla. 2d DCA 1969). The failure to state a cause of action is not a mere formality or technical problem. Even if the allegations of a complaint are taken as true in a default, there is no basis for relief to be granted if a cause of action is not set forth in the pleading. Se. Land Developers, Inc. v. All
For example, one may complain and allege that the moon is made of cheese and little green men are looking down, for which the complaining party under these allegations would be entitled to a default judgment which would support affirmative monetary relief if an answer was not timely filed. I think it is dangerous precedent to utilize only the General Rules of Pleading Rule 1.110 and Defenses Rule 1.140, Florida Rules of Civil Procedure, in addressing the issues before us today. I would quash the decision of the Fourth District below and hold that a default admits or establishes only the properly pleaded allegations in the complaint and if these allegations as admitted based on the default do not state a cause of action for which relief can be granted, any subsequent judgment based on such non-existent cause of action is void.