FINAL UNTIL TIME EXPIRES TO FILE MOTION FOR REHEARING AND
DISPOSITION THEREOF IF FILED
appeal from the Circuit Court for Okaloosa County. Terrance
R. Ketchel, Judge.
E. Harper III, Darryl Steve Traylor, Jr., and T. A. Borowski,
Jr., Borowski & Traylor, P.A., Pensacola, for Appellant.
A. Dibert, Matthews & Jones, LLP, Crestview, for Appellee
Winsouth Credit Union.
case arises from competing monetary claims to the respective
membership interests of John Eric Richards and Christopher L.
Richards in a Florida limited liability company. Capstone
Bank challenges the trial court's determination that
WinSouth Credit Union's charging order has priority over
Capstone Bank's charging order. We reverse because
WinSouth's charging order was entered on an Alabama
judgment that was not properly domesticated as to John and
Christopher. WinSouth obtained a final judgment in Alabama
against Richards Motors, Inc., John Eric Richards, and
Christopher L. Richards, but it only recorded the certificate
of judgment against Richards Motors, Inc. in the public
records of Florida. Nowhere on that recorded judgment is it
apparent that WinSouth also obtained a judgment against John
or Christopher. Since the Alabama court issued three separate
certificates of judgments in favor of WinSouth, domestication
was required as to each. WinSouth's recording of its
judgment against Richards Motors, Inc. did not serve to
domesticate its judgment against John and Christopher
notwithstanding there is joint and several liability.
See § 55.503(1), Fla. Stat. (2015) (requiring
that the judgment sought to be domesticated must be recorded
in order for it to be enforced as a judgment of the state).
Because domestication was not established, it was error to
accord relief to WinSouth. Accordingly, we reverse and remand
for proceedings consistent with this opinion.
and RAY, JJ., CONCUR. MAKAR, J. CONCURS IN RESULT WITH
J., concurring in result.
single two-page judgment against three defendants holding
them jointly and severally liable was entered in Alabama. A
certified copy of that judgment, along with only one of the
certificates of authentication (as to corporate defendant
Richards Motors) and a required affidavit, was filed with the
clerk in Okaloosa County by WinSouth Credit Union, which
sought to impose a charging lien. Certificates as to
co-defendants Christopher Richards and John Eric Richards
were not filed, but statutory notice was filed and provided
to all affected persons including all three judgment debtors.
Under these circumstances, where no discernable prejudice
appears, domestication of the collective judgment as to the
three defendants was established.
the Alabama judgments had not been domesticated, however,
reversal is warranted as to the trial court's
determination as to priority, the record showing that
Capstone Bank applied for and obtained its perfected charging
order prior to that of WinSouth.
charging order is "a remedy that a creditor of a member
in an LLC (or of a partner in a limited partnership) can
receive from a court that instructs the entity to give the
creditor any distributions that would otherwise be paid to
the partner or member from the entity." Alan S. Gassman,
After Olmstead: Will a Multiple-member LLC Continue to
Have Charging Order Protection?, 84 Fla. B.J. 10,
(December 2010); see also Krauth v. First Cont'l
Dev-Con, Inc., 351 So.2d 1106, 1108 (Fla. 4th DCA 1977)
("The charging order is a flexible court-supervised
substitute for the more disruptive process of execution by
competing judgment creditors, the first to obtain an
enforceable charging order has priority. See In re
Jaffe, 235 B.R. 490, 492 (Bankr. S.D. Fla. 1999)
("[A]n application for a charging order starts the
judicial process for perfecting a lien against a partnership
interest. Perfection of the lien, however, does not occur
until a court actually enters a charging order.");
but see Krauth, 351 So.2d at 1108 (providing that
"where unsecured judgment creditors are concerned, the
first to apply to a court of proper jurisdiction for a [ ]
charging order has priority").
a charging order "constitutes a lien on the judgment
debtor's limited liability company interest or assignee
rights, " Young v. Levy, 140 So.3d 1109, 1111
(Fla. 4th DCA 2014), issuance of an enforceable charging
order requires domestication of the foreign judgment. See
Michael v. Valley Trucking Co., Inc., 832 So.2d 213, 215
(Fla. 4th DCA 2002) (explaining that, prior to Florida's
adoption of the Florida Enforcement of Foreign Judgments Act
("FEFJA"), "creditors with foreign judgments
had to file an action to ...