SUSAN S. KENNEDY, Appellant,
RES-GA LAKE SHADOW, LLC, LAKE SHADOW LIMITED, LLC, AND WILLIAM G. KENNEDY, Appellees.
FINAL UNTIL TIME EXPIRES TO FILE MOTION FOR REHEARING AND
DISPOSITION THEREOF IF FILED
appeal from the Circuit Court for Walton County. Thomas R.
E. McGill, III, of Robert E. McGill, III, P.A., Destin, for
S. Bauman and Jeffrey L. Burns of Anchors Smith Grimsley,
Fort Walton Beach, for Appellee RES-GA Lake Shadow, LLC.
appearance for Appellees Lake Shadow Limited, LLC, and
William G. Kennedy.
APPELLEE'S MOTION FOR REHEARING AND CLARIFICATION We
grant in part Appellee RES-GA Lake Shadow, LLC's Motion
for Rehearing and Clarification, withdraw our previous
opinion issued on June 23, 2017, and substitute the following
opinion in its place.
S. Kennedy appeals an order denying her motion to vacate a
writ of execution and sheriff's deed issued on her
Panhandle condominium. RES-GA Lake Shadow, LLC (RES-GA),
brought proceedings supplementary to execution related to a
money judgment against Ms. Kennedy's former husband.
Without impleading Ms. Kennedy into the case, RES-GA received
a writ of execution and sheriff's deed giving it a
one-half interest in a condominium that Ms. Kennedy had
previously been awarded in the divorce. We reverse for due
February 2014, RES-GA received a $5 million judgment in
Georgia against William G. Kennedy. At the time, Mr. Kennedy
was married to the Appellant Ms. Kennedy, but they divorced
in Alabama seven months later in September 2014. RES-GA moved
to domesticate its Georgia judgment against Mr. Kennedy in
Florida. And it also instituted supplementary execution
proceedings directed at Mr. Kennedy's interests in
Florida, including a Sandestin condominium that he had
previously owned with his wife Ms. Kennedy as tenants by the
entirety. In the divorce, however, the final decree awarded
Ms. Kennedy the condo as part of its wider distribution of
ten real property interests that the Kennedys had owned.
January 2015, after a hearing in the supplementary execution
proceedings, the trial court approved RES-GA's request to
consider Mr. Kennedy as part owner of the Sandestin condo.
RES-GA's argument pointed to the Kennedys' final
divorce decree as the basis for claiming that Mr. Kennedy
still possessed a one-half interest in the property as
tenants in common with Ms. Kennedy. The court agreed with
RES-GA, converted the property to a tenancy in common, and
permitted RES-GA to levy on Mr. Kennedy's apparent
one-half interest in the condo. In April 2015, the court
issued a writ of execution and authorized a sheriff's
deed sale that ultimately conveyed RES-GA a right, title, and
interest in the condo. Through all of this, Ms. Kennedy
wasn't made a party to the supplementary execution
proceedings or provided notice of it, even though the divorce
awarded her the condo and she possessed a substantial
interest in the property.
month after the sheriff's deed sale, Ms. Kennedy
intervened to set aside the writ of execution and vacate the
deed. She appealed after the court denied her request for
Kennedy argues on appeal that she should have been notified
and impleaded into the supplementary execution proceeding
before the trial court issued the writ of execution and
sheriff's deed affecting the title to her condo. She is
correct. Supplementary execution proceedings are designed to
be "equitable in nature." BielReo,
LLC v. Barefoot Cottages Dev. Co., LLC, 156 So.3d 506,
508 (Fla. 1st DCA 2014) (citing Ferguson v. State Exch.
Bank, 264 So.2d 867, 868 (Fla. 1st DCA 1972)). After a
party initiates proceedings supplementary, a creditor may
pursue assets held by the debtor, assets of the debtor held
by another, or assets that have been fraudulently transferred
to another. See § 56.29, Fla. Stat. But the
rights of any third party interest-holders must be accounted
for by impleading them into the proceeding and allowing them
to defend their interests. Biel Reo, 156 So.3d at
509. "It is well-settled that a party holding a claim
adverse to both plaintiff and defendant must be brought into
supplementary execution proceedings as a third-party