Susan S. Kennedy v. RES-GA Lake Shadow, LLC, Lake Shadow etc.
224 So. 3d 931
| Fla. Dist. Ct. App. | 2017Background
- RES-GA obtained a $5 million Georgia judgment against William G. Kennedy in Feb. 2014 and domesticated it in Florida.
- William and Susan Kennedy divorced in Alabama in Sept. 2014; the divorce decree awarded the Sandestin condominium to Susan (the wife).
- RES-GA initiated supplementary execution proceedings in Florida targeting assets of William, asserting the divorce left the condo as a tenancy in common (one-half interest for William).
- The trial court converted the condo to tenancy in common, issued a writ of execution, and a sheriff’s deed conveying RES-GA William’s asserted one-half interest—without impleading or notifying Susan.
- Susan intervened after the sheriff’s deed sale seeking to vacate the writ and deed; the trial court denied relief, and Susan appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether third-party interest-holders must be impleaded in supplementary execution proceedings before orders affecting their property issue | Kennedy: She was entitled to notice and to be impleaded because the divorce decree awarded her the condo outright | RES-GA: The foreign divorce decree and statute meant the property became tenancy in common, permitting levy on William’s supposed half-interest without impleading Susan | Court: Reversed—third-party owners must be impleaded and given a full opportunity to be heard; Susan should have been brought into the proceeding |
Key Cases Cited
- Biel Reo, LLC v. Barefoot Cottages Dev. Co., LLC, 156 So. 3d 506 (Fla. 1st DCA 2014) (supplementary execution proceedings are equitable and require protecting third-party rights)
- Ferguson v. State Exch. Bank, 264 So. 2d 867 (Fla. 1st DCA 1972) (background on equitable nature of supplementary proceedings)
- Sanchez v. Century Everglades, LLC, 946 So. 2d 563 (Fla. 3d DCA 2006) (party with adverse claim must be brought in as third-party defendant)
- Ryan’s Furniture Exchange, Inc. v. McNair, 162 So. 483 (Fla. 1935) (requiring impleader of adverse claimants in supplementary proceedings)
- State v. Viney, 163 So. 57 (Fla. 1935) (orders in supplementary proceedings cannot affect third-party rights unless they are impleaded and heard)
- Farley v. Farley, 790 So. 2d 574 (Fla. 4th DCA 2001) (foreign judgments are typically entitled to full faith and credit)