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Edwards v. Airline Support Group, Inc.
138 So. 3d 1209
Fla. Dist. Ct. App.
2014
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Background

  • Edwards appeals a non-final order denying his motion to dismiss for lack of personal jurisdiction in a Florida fraud-transfer suit under §726.108.
  • ASG, a Florida corporation, sued DAE1 (Indiana) and DAE2 (Kentucky); Edwards is an Indiana resident and alleged affiliate/insider of DAE1.
  • ASG alleges Edwards received or is receiving distribution of sale proceeds from transfers of DAE1 assets.
  • The action concerns fraudulent transfers; Edwards is challenged as a transferee, not a transferor.
  • ASG's third amended complaint and the record lack proof of where the alleged transfer occurred in Florida, raising specific-jurisdiction concerns.
  • The court held that a fraudulent transfer is not a tortious act under the Florida long-arm statute and reversed the order denying dismissal.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Is a fraudulent transfer a tortious act for long-arm purposes? ASG argues transfers fall within long-arm reach as a tortuous act. Edwards contends transfers are not tortious acts under §48.193(1)(a)(2). Not a tortious act; long-arm unavailable.
Do allegations specify where the transfer occurred to support specific jurisdiction? ASG contends Florida-based implications justify jurisdiction. Edwards argues transfer location is unspecified, defeating specific jurisdiction. Allegations lack where the transfer occurred; no jurisdictional basis shown.

Key Cases Cited

  • Brown v. Nova Info. Sys., Inc., 903 So.2d 968 (Fla. 5th DCA 2005) (fraudulent transfer not a tortious act for long-arm purposes)
  • Beta Real Corp. v. Graham, 839 So.2d 890 (Fla. 3d DCA 2003) (fraudulent transfer not a tortious act)
  • Dinn v. Haynes, 705 So.2d 686 (Fla. 4th DCA 1998) (majority view that fraudulent transfers are not tortious acts)
  • Friedman v. Heart Inst, of Port St. Lucie, Inc., 863 So.2d 189 (Fla. 2003) (long-arm analysis under 726.108; breadth of relief against transferee)
Read the full case

Case Details

Case Name: Edwards v. Airline Support Group, Inc.
Court Name: District Court of Appeal of Florida
Date Published: May 28, 2014
Citation: 138 So. 3d 1209
Docket Number: No. 4D13-1068
Court Abbreviation: Fla. Dist. Ct. App.