Capstead Mortgage Corp. v. Sun America Mortgage Corp.
Capstead Mortgage Corporation challenged a summary judgment ruling which denied its claims against Sun America Mortgage Corporation. Capstead had purchased mortgage loans from Sun America, including one where Kadeem Omari defaulted, leading Capstead to demand repurchase and subsequently foreclose on the property. The trial court granted summary judgment in favor of Sun America based on the doctrine of election of remedies. The appellate court affirmed this decision, ruling that Capstead's action of bidding the entire balance at the foreclosure sale and taking title to the property constituted an election of remedies. Furthermore, the court found that the mortgage loan ceased to exist upon foreclosure, thus extinguishing Sun America's warranties and representations.