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A case that could have an impact on thousands of Floridians facing foreclosure is in the hands of the Florida Supreme Court. As Whitney Ray tells us, a Palm Beach County man is fighting his bank, after they tried to foreclose using fraudulent documents.

Florida’s housing crisis took center stage at the Florida Supreme Court Thursday, in a case challenging robo-signing. Amanda Lundergan is representing Roman Pino. In 2008, Pino’s bank filed for foreclosure, and used fraudulent, robo-signed documents against him. Once the bank got caught they dropped their suit then filed a new one, with new paperwork.

“Mr. Pino was denied the opportunity to have the case dismissed with prejudice right then and there,” said Lundergan.

Lundergan told the justices, the bank shouldn’t have been allowed to drop the suit just because it was caught using forged documents.

“It sets up a system were by every litigant who comes before our courts, has not only been condoned, but encouraged to lie, cheat, to steal,” said Lundergan.

The case could have statewide implications. If the court decides lenders can’t back out of lawsuits just because they’ve been caught robo-signing forged documents, then the scales of justice could tip in favor of the borrowers.

Kenneth McLane is one of those borrowers. Two years ago his bank tried to foreclosure on his home using robo-signed documents.

“Essentially it’s just a huge Ponzi scheme and it’s starting to come out now,” said McLane.

McLane, hopes the Palm Beach case leads to harsher penalties for robo-signing and a level playing field for people facing foreclosure. As for Pino, he entered into a secret settlement with his bank last year that allows him to keep his home. In Florida, the nation’s largest banks have agreed to stop robo-signing as part of a multi-billion dollar settlement.