October 6, 2014 – In an effort to keep clients and firm contacts abreast of recent changes in Florida law, Ellison Lazenby, PLLC would like to pass along important information regarding a recent changes in creditors’ rights law that could affect all creditors seeking to enforce judgments in Florida. Specifically, a recent change in Florida law that provides judgment creditors a new collection tool. Many jurisdictions have subscribed to the Uniform Fraudulent Transfer Act, which allows for property which is fraudulently transferred by a judgment debtor to another person to be recovered by the judgment creditor through instituting a legal proceeding against the transferee of such property. A question arose when the transferred asset was disposed, destroyed, devalued, or was otherwise not able to be recovered. Could a new money judgment be entered against a transferee, or was the judgment creditor stuck with yet another worthless piece of paper?
The Florida legislature has clarified existing Florida law finding that, through a proceedings supplementary to execution, a judgment creditor may obtain a money judgment against any initial or subsequent transferees of property found to be a fraudulent transfer under Florida’s version of the Uniform Fraudulent Transfer Act. Such remedy is available to a judgment creditor irrespective of whether the transferee has retained the fraudulently transferred property.
In step with this change, Florida is also looking to further amend its Proceedings Supplementary statute. Jason Ellison is currently involved in a joint task force which has been charged with proposing modifications and additional clarifications to this developing area of the law. As the law continues to develop, the attorneys of Ellison Lazenby, PLLC will continue to monitor and pass along important changes as they are made. If you have any questions related to this, or any other creditors’ rights issues, please do not hesitate to contact either William Lazenby or Jason Ellison.