Abukasis v. Mtm Finest, Ltd.
199 So. 3d 421
| Fla. Dist. Ct. App. | 2016Background
- MTM Finest, Ltd. obtained a final money judgment against Eliahu Abukasis for unpaid loan/auto purchase obligations; judgment stated "for which let execution issue."
- Five years after the final judgment, MTM filed a Notice to Produce in Aid of Execution seeking Abukasis’s membership interest in A & E Two Associates, LLC and threatened a judicial transfer if he failed to appear.
- At a hearing on the notice (Abukasis absent and unrepresented), the trial court ordered Abukasis’s LLC membership interest transferred to MTM with full ownership rights, citing Fla. Stat. § 605.0503 and § 726.108.
- Abukasis, who had not participated in the case since 2009, retained counsel after the transfer order and moved for rehearing, arguing the court lacked jurisdiction to enforce the judgment and that the transfer was unauthorized.
- The trial court denied rehearing; Abukasis appealed. The appellate court upheld jurisdiction to enforce the final judgment but reversed the transfer order for failing to comply with statutory procedures governing remedies against LLC membership interests.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Court’s jurisdiction to enforce final judgment | MTM: judgment allowed execution; court can enforce and execute. | Abukasis: trial court lacked jurisdiction because it had not reserved post-judgment enforcement jurisdiction. | Court: Jurisdiction existed; final judgment included “for which let execution issue.” |
| Authority to transfer LLC membership interest to satisfy judgment | MTM: could judicially transfer membership interest pursuant to Fla. Stat. § 605.0503 (and § 726.108). | Abukasis: statutory scheme limits creditor remedies to charging orders and prescribed foreclosure process; direct transfer to creditor is unauthorized. | Court: Reversed transfer; process did not conform to § 605.0503 and exclusive remedies for judgment creditors. |
| Use of fraudulent-transfer statute to obtain membership interest | MTM: § 726.108 supports transfer as avoidance of fraudulent transfers or to reach the interest. | Abukasis: § 726.108 is inapplicable; creditor remedies against LLC interests are governed by § 605.0503 and related LLC law. | Court: Application of § 726.108 was flawed; creditor must follow LLC statute remedies (charging order/foreclosure). |
Key Cases Cited
- DuBreuil v. Regnvall, 527 So. 2d 249 (Fla. 3d DCA 1988) (traditional rule that wording “for which let execution issue” supports writ of execution)
- Olmstead v. Fed. Trade Comm’n, 44 So. 3d 76 (Fla. 2010) (discussing charging orders as the remedy against LLC membership interests)
- Friedman v. Friedman, 825 So. 2d 1010 (Fla. 4th DCA 2002) (language about execution not essential to finality of judgment)
- Chan v. Brunswick Corp., 388 So. 2d 274 (Fla. 4th DCA 1980) (no statutory requirement that final judgment expressly refer to execution)
- Landing Grp. of Tampa, Inc. v. Kifner, 951 So. 2d 1014 (Fla. 5th DCA 2007) (test for finality: whether judicial labor is complete)
- Pruitt v. Brock, 437 So. 2d 768 (Fla. 1st DCA 1983) (finality test regarding termination of judicial labor)