Brundage Law P.A.

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Florida Federal District Court Rules on Statute of Limitations to Collect Judgment

On Behalf of | Nov 8, 2017 | Firm News |

In a case of first impression, Judge Mark Walker, United States District Judge, Northern District of Florida, ruled recently that a judgment creditor seeking to recover assets to reduce an outstanding judgment has 20 years to bring fraudulent transfer claims against third parties. The Court reconciled the 4- year statute of repose that governs fraudulent transfer claims under Florida law generally with the 20-year time period within which one can collect a judgment.  The Court found that in a proceeding supplementary to execution (an ancillary proceeding to assist in collecting the judgment) filed by a judgment creditor, the creditor may pursue fraudulent transfer claims to pay or reduce the judgment according to the 20-year statute of limitations that pertains to judgments, as opposed to the 4-year statute of limitations that pertains to fraudulent transfer claims not involving the collection of a judgment.

The Court’s ruling has clarified a muddled issue and is a victory for parties holding uncollected judgments. The case is SE Property Holdings, LLC v. McElheney, United States District Court, Northern District of Florida, Panama City Division, case 12-164.

Please call Brundage Law, P.A. 727-250-2488 with any questions about the ruling.