Desak v. Vanlandingham
98 So. 3d 710
Fla. Dist. Ct. App.2012Background
- Wilma Desak, as personal representative of Helen Desak's estate, sues Vanlandingham Farms, Inc. under the Uniform Fraudulent Transfer Act to recover from a 2003 transfer alleged to defraud the estate.
- The transfer allegedly occurred when Lawrence Taylor conveyed lands in Gadsden County to VLFI, recorded February 19, 2003 (OR Book 560 Page 976, Instrument No. 0301849).
- The second amended complaint (Aug. 16, 2010) asserts the transfer was made with actual intent to defraud the estate, which would become a future creditor through the wrongful death action.
- VLFI moved to dismiss under § 726.110(1), arguing the action is untimely because the one-year discovery savings period began when the deed was recorded.
- The trial court dismissed the fraudulent transfer claim with prejudice, holding the claim barred as a matter of law.
- On appeal, the court held that recording alone does not as a matter of law start the savings period and reversed/remanded for factual development.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether discovery could reasonably have occurred within 1 year after transfer | Desak contends discovery is a factual question; the one-year period could extend if discovery was reasonably possible within that year. | VLFI contends the savings clause began when the deed was recorded, foreclosing any later discovery-based extension. | Issue resolved in favor of remand; facts must determine discovery timing. |
| Whether recording a deed starts the savings period under §726.110(1) | Desak argues recording alone does not trigger the one-year clock for discovery. | VLFI argues recording provides constructive notice and starts the savings period. | Recording does not by itself start the savings period. |
| Whether the discovery rule applies to fraudulent transfers absent third-party notice | Desak asserts no need to monitor multi-county records; lack of notice should prevent bar. | VLFI asserts standard notice rules apply and recording suffices to begin awareness. | Court remands to develop facts; not resolved on record. |
| Whether the complaint adequately alleges facts to trigger the discovery clock | Desak alleges facts that should show discovery within a year if reasonable diligence is applied. | VLFI argues there are no pleaded facts showing notice within one year of the transfer. | Remand to determine whether pleadings support discovery-based extension. |
Key Cases Cited
- Winn-Dixie Stores, Inc. v. Dolgencorp, Inc., 964 So.2d 261 (Fla. 4th DCA 2007) (notice and discovery concepts, recording effects described)
- Freligh v. Maurer, 111 So.2d 712 (Fla. 2d DCA 1959) (recording as notice concept discussed)
- Bakalarz v. Luskin, 560 So.2d 283 (Fla. 4th DCA 1990) (recording provides constructive notice in Florida context)
- Townsend v. Morton, 36 So.3d 865 (Fla. 5th DCA 2010) (recording statute and notice considerations)
- Sweat v. Yates, 463 So.2d 306 (Fla. 1st DCA 1984) (recording statute primarily protects bona fide purchasers and creditors)
- Segal v. Rhumbline International, Inc., 688 So.2d 397 (Fla. 4th DCA 1997) (four-year vs discovery period; issue of discovery within statute)
- Budhu v. Budhu, N.Y.S.2d 694 (N.Y. Sup. Ct. 2011) (recording alone not sufficient to alert reasonably diligent person)
- Bueneman v. Zykan, 181 S.W.3d 105 (Mo. Ct. App. 2005) (recording does not unilaterally commence limitations period)
- Crescent v. White, 493 P.2d 1323 (Nev. 1972) (recording statute notice limitations for subsequent purchasers)
- Villa Nat'l Bank v. Green, 478 P.2d 681 (Colo. Ct. App. 1970) (creditor notice threshold linked to recorded interest)
- Elliott v. Goss, 108 S.E.2d 475 (N.C. 1959) (fraud accrues upon discovery of fraud, not mere recording)
- Hair v. Schellenberger, 966 N.E.2d 693 (Ind. Ct. App. 2012) (recording date may be relevant but not controlling)
- Curd v. Mosaic Fertilizer, LLC, 39 So.3d 1216 (Fla. 2010) (treats complaint truth for purposes of dismissal)
