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