United States District Court, M.D. Florida, Jacksonville Division
RICHARD ARROWSMITH, as Liquidating Trustee of the HDL Liquidating Trust, Plaintiff,
MAGNOLIA ADULT, LLC, Defendant.
REPORT AND RECOMMENDATION 
R. KLINDT UNITED STATES MAGISTRATE JUDGE.
cause is before the Court on Plaintiff's Unopposed Motion
for Final Judgment of Garnishment as to First Federal Bank of
Florida (Doc. No. 12; “Motion”), filed June 24,
2019. As the Motion states, a judgment
(“the Judgment”) was entered on August 5, 2018 in
the United States Bankruptcy Court for the Eastern District
of Virginia in favor of Richard Arrowsmith, as Liquidating
Trustee of the HDL Liquidating Trust
(“Plaintiff”), and against Magnolia Adult, LLC
(“Defendant”), Bilal Khodr, and Ira D. Lee, Jr.,
jointly and severally, for the sum of $9, 960.00 plus
attorney's fees and expenses of $1, 000.00, for a total
of $10, 960.00. Motion at 1 ¶ 1; see Doc. No.
1-1 (Bankruptcy Court's Order). The Judgment was
registered in this Court on February 11, 2019. See
Certification of Judgment for Registration in Another
District (Doc. No. 1); see also 28 U.S.C. § 1963
(providing that “[a] judgment in an action for the
recovery of money or property entered in any . . . bankruptcy
court . . . may be registered by filing a certified copy of
the judgment in any other district” and when
registered, “shall have the same effect as a judgment
of the district court of the district where registered and
may be enforced in like manner”).
69(a)(1), Federal Rules of Civil Procedure, provides as
A money judgment is enforced by a writ of execution, unless
the court directs otherwise. The procedure on execution-and
in proceedings supplementary to and in aid of judgment or
execution-must accord with the procedure of the state where
the court is located, but a federal statute governs to the
extent it applies.
Fed. R. Civ. P. 69(a)(1); see also Fed.R.Civ.P. 64.
Because this district is in the State of Florida, Florida law
applies in executing the Judgment and in garnishment
February 27, 2019, Plaintiff requested the issuance of a writ
of garnishment directed toward First Federal Bank of Florida
(“Garnishee”) in accordance with Fla. Stat.
§ 77.03. See Ex-Parte Motion for Issuance of a
Writ of Garnishment to First Federal Bank of Florida (Doc.
No. S-2; “Motion for Writ of Garnishment”). On
April 12, 2019, the Court entered an Order (Doc. No. 3)
granting that request (“Order Issuing Writ”), and
a writ of garnishment (Doc. No. S-4) was issued on April 15,
2019. The writ of garnishment was later amended at the
direction of the Court. See Order (Doc. No. 5;
“Order Directing Amendment of Writ”), entered
April 16, 2019; Amended Writ of Garnishment (Doc. No. 6;
“Writ of Garnishment”), entered April 17,
2019. On April 22, 2019, Plaintiff served
Garnishee with a copy of the Writ of Garnishment.
See Notice of Service of Writ of Garnishment (Doc.
No. 7), filed April 25, 2019. In compliance with Fla. Stat.
§ 77.041, Plaintiff mailed to Defendant, by first class,
copies of the Writ of Garnishment, the Motion for Writ of
Garnishment, and the “Notice to Defendant” on
April 25, 2019. See Notice of Service of Writ of
3, 2019, Garnishee filed its Answer (Doc. No. 8-1) to the
Amended Writ of Garnishment, in which it represents that it
has $25, 768.18 of Defendant's funds. Answer at 1 ¶
1, 3 (showing certificate of service). Garnishee also
states in the Answer that “under the terms of . . .
certain Promissory Note[s] executed by Defendant . . . in
favor of Garnishee, the Garnishee has a contractual right of
setoff and hereby claims this right against all funds
maintained in the referenced accounts.” Id. at
4 ¶ 4. Plaintiff did not serve a reply to the Answer
under Fla. Stat. § 77.061. On May 3, 2019, pursuant to
Fla. Stat. § 77.055, Plaintiff served Defendant with
Garnishee's Answer and a notice advising Defendant that
it must move to dissolve the Writ of Garnishment within
twenty days after the date indicated on the certificate of
service of the notice if any allegation in the Motion for
Writ of Garnishment is untrue. See Plaintiff's
Notice to Defendant of Answer by First Federal Bank of
Florida (Doc. No. 8). Defendant did not move to dissolve the
writ of garnishment.
11, 2019, Plaintiff filed a Motion for Final Judgment of
Garnishment as to First Federal Bank of Florida (Doc. No. 9;
“First Motion”), which Garnishee opposed.
See Garnishee's Response to Plaintiff's
Motion for Entry of Final Judgment of Garnishment (Doc. No.
10; “Response to First Motion”), filed June 17,
2019. Garnishee stated that it “asserted in its answer
that [Garnishee] was entitled to the funds, [and] when
Plaintiff failed to contest that allegation, the funds were
established as belonging to [Garnishee].” Response to
First Motion at 2. Thereafter, the instant Motion was filed.
In the Motion, Plaintiff represents that “the setoff
issue has been resolved” and that Garnishee does not
oppose the entry of final judgment of garnishment in the
amount of $10, 960.00. Motion at 2 ¶ 12.
did not serve a reply under Fla. Stat. § 77.061; thus,
the allegations in the Answer are taken as true. See
Fla. Stat. § 77.061. Accordingly, judgment in favor of
Plaintiff and against Garnishee is due to be entered, in the
amount of $10, 960.00. See Fla. Stat. § 77.083.
on the foregoing, it is
1. That Plaintiffs Unopposed Motion for Final Judgment of
Garnishment as to First Federal Bank of Florida (Doc. No. 12)
2. That final judgment of garnishment be entered by the Clerk
of Court in favor of Richard Arrowsmith, Liquidating Trustee
of the HDL Liquidating Trust (“Plaintiff), directing
Garnishee, First Federal Bank of Florida, to pay Plaintiff
$10, 960.00 by check payable to Richard Arrowsmith,
Liquidating Trustee of the HDL Liquidating Trust. The check
shall be delivered to Jones Walker LLP, c/o Barry Turner, 201
S. Biscayne Blvd., Suite 2600, Miami, FL 33131.
3. That upon the payment of $10, 960.00, the Garnishee, First
Federal Bank of Florida, be discharged from further liability