Last Summer the Florida Supreme Court created a legal Tsunami that washed over the legal community when it handed down it’s opinion in Olmstead v. FTC. In that case, the FTC had obtained a judgment for more than $10 million against Olmstead for operating a credit card scam. The FTC obtained an order requiring the Olmstead to hand over his single member LLC to the FTC (Olmstead’s LLC held several million dollars in cash).
Understandably, Olmstead was not pleased with this order and hence appealed the decision arguing that the only remedy available against his ownership interest in his single-member LLCs was a charging order per the Florida Statutes which provide:
On application to a court of competent jurisdiction by any judgment creditor of a member, the court may charge the limited liability company membership interest of the member with payment of the unsatisfied amount of the judgment with interest. To the extent so charged, the judgment creditor has only the rights of an assignee of such interest. This chapter does not deprive any member of the benefit of any exemption laws applicable to the member’s interest. FL Statue 608.433
Continue reading the remainder of my post here on BiggerPockets…