339 So.3d 315
Fla.2022Background
- Creditors (Buechel and Pappas) obtained a Florida money judgment against debtor Shim and Cellumed.
- Post-judgment discovery showed Shim had about $4,000,000 in proceeds (a negotiable instrument) stored at his home in South Korea.
- Creditors moved under §56.29(6), Fla. Stat., to compel Shim to turn over those proceeds to satisfy the Florida judgment.
- The trial court denied relief, reasoning Florida courts lack in rem/quasi in rem jurisdiction over foreign property and could not compel turnover.
- The Fifth District reversed in Buechel, holding §56.29(6) allows a court with in personam jurisdiction over a defendant to order that defendant to act on foreign assets; the Fourth District’s Sargeant decision conflicted.
- The Florida Supreme Court approved the Fifth District, holding a trial court may order a defendant over whom it has personal jurisdiction to act on foreign property under §56.29(6), and disapproving Sargeant to the extent it held otherwise.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether §56.29(6) authorizes a Florida court to compel a judgment debtor to act regarding property located outside Florida | §56.29(6) plainly authorizes courts to levy any property of the judgment debtor, including foreign assets, when the court has in personam jurisdiction | Florida courts lack in rem or quasi in rem jurisdiction over foreign property; therefore they cannot compel turnover of property located abroad | Yes. A court with in personam jurisdiction may order a defendant to act on foreign property under §56.29(6); Sargeant is disapproved to the extent it holds otherwise |
| Whether policy/extraterritorial concerns preclude applying §56.29(6) to foreign property | The statute’s text is clear and controls; policy concerns cannot override an unambiguous statute | Policy arguments counsel against extraterritorial reach and limit application | Court relied on the statute’s plain meaning and controlling precedent on in personam power; extraterritorial application is permitted only when the court has personal jurisdiction over the defendant (and no broader extraterritorial reach is implied) |
Key Cases Cited
- Sargeant v. Al-Saleh, 137 So. 3d 432 (Fla. 4th DCA 2014) (held trial court lacked jurisdiction to compel turnover of property located outside Florida)
- Gen. Elec. Cap. Corp. v. Advance Petroleum, Inc., 660 So. 2d 1139 (Fla. 3d DCA 1995) (recognized that in personam jurisdiction can support orders that indirectly affect out-of-state property)
- Fall v. Eastin, 215 U.S. 1 (1909) (historic U.S. Supreme Court rule that courts may compel defendants to act concerning property outside the forum)
- Morrison v. Nat’l Austl. Bank Ltd., 561 U.S. 247 (2010) (statutes lacking a clear indication of extraterritorial application have none)
- State v. Peraza, 259 So. 3d 728 (Fla. 2018) (Florida Supreme Court principle that clear statutory text controls over policy considerations)
