In a setback for mortgage lenders, the Florida Supreme Court on Thursday ruled the Bank of New York Mellon Corp. waited too long to try to vacate an adverse judgment in a title dispute following foreclosure.

The case pitted BNY Mellon against Condominium Association of La Mer Estates Inc. and raised the question of whether a judgment becomes void—treated as if it never existed—or is voidable if based on a complaint with no cause of action.