THE MARINE BANK OF MONROE COUNTY, APPELLANT,
v.
RICHARD C. MILSTEIN, GUARDIAN AD LITEM IN THE GUARDIANSHIP OF MADELINE LAUGHEAD, INCOMPETENT, APPELLEE
AI-generated. These summaries, headnotes, and key points are machine-generated and may contain errors or omissions. Always verify against the full opinion text below. Not legal advice.
Marine Bank of Monroe County violated a court order freezing the assets of an incompetent ward by unilaterally setting off unpaid loans against the ward's account and initiating foreclosure proceedings on her homestead. The trial court found the bank in civil contempt and ordered return of the appropriated funds and cessation of foreclosure; this appeal affirms that judgment.
The bank violated the order freezing assets and was properly found in civil contempt. The trial court correctly directed the bank to return the funds it unilaterally appropriated and enjoined it from proceeding with homestead foreclosure. However, the bank retains its right as a creditor to pursue the ward's assets through proper legal channels with notice to the guardian.
[1] A bank that has been ordered by a court to freeze a depositor's assets may be held in civil contempt for unilaterally setting off unmatured loans against those frozen ass…
[2] A bank may be enjoined from proceeding with foreclosure on a ward's homestead when it possesses sufficient funds to satisfy delinquent mortgage payments and refuses to pe…
Previewing 2 of 5 headnotes on this case. FLexlaw’s editorially structured points of law — every proposition, pinpointed — are reserved for members.
Join FLexlaw to unlock all legal intelligence“This injunctive order was recognized by the bank when it acknowledged on several occasions that it was holding funds of Madeline Laughead 'pending further order of court', that the accounts were 'frozen.'”
Establishes the bank had clear notice of the freezing order and acknowledged its obligation to comply.
Previewing 1 of 3 key quotes on this case — the court’s exact language, pinpointed for members.
Join FLexlaw to unlock all legal intelligenceMadeline Laughead suffered a stroke and was hospitalized. A petition for incompetency was filed, and the court issued an order freezing her assets at …
The full statement of facts, procedural history, and disposition for this case are member content.
Join FLexlaw to unlock all legal intelligence© FLexlaw, Inc. — AI-generated enrichments are proprietary. All rights reserved.
Explore caselaw by topic → Browse Injunctive Order cases and more on FLexlaw
[*892] PER CURIAM.
Following a stroke, Madeline Laughead was hospitalized in the South Miami Hospital. A petition to have her declared incompetent was filed pursuant to Section 744.-331, Florida Statutes (1987). Pending determination of competency, her assets in the Marine Bank of Monroe County were “frozen” pending further order of the court. This injunctive order was recognized by the bank when it acknowledged on several occasions that it was holding funds of Madeline Laughead “pending further order of court”, that the accounts were “frozen.” Thereafter, the court ordered that the funds be transferred to First Federal Savings & Loan Association of the Florida Keys, a depository for the ward’s account.1
At the time Marine Bank received notice of the depository order, it set off two un-matured loans against the ward’s account and commenced foreclosure proceedings against the ward’s homestead for failure to pay two monthly installments, even though the bank had in its possession sufficient funds to satisfy these installment payments. The bank also refused to permit the guardian to reinstate the mortgage by tendering the delinquent payments. A rule to show cause was issued for failure to comply with the order freezing assets. The trial judge found the bank in civil contempt and directed it return the funds that it unilaterally appropriated and enjoin the bank from proceeding with the homestead foreclosure. We find no error and affirm. Wilson v. Sandstrom, 317 So. 2d 732, 741 (Fla.1975), cert, denied, 423 U.S. 1053, 96 S.Ct. 782, 46 L.Ed.2d 642 (1976); Savage v. Winfield, 152 Fla. 165, 11 So. 2d 302 (Fla.1943); Thebault v. Canova, 11 Fla. 143 (1867); 60 C.J.S. Motions & Orders § 65 (1969); Compare Pascal v. George Davis & Co., 170 So. 2d 466 (Fla. 3d DCA 1965).
Of course, after the funds are returned, the bank would continue to have its right, as any other creditor, to pursue the assets of the wards for collection of its due obligations upon proper notice and petition, to the guardian.
AFFIRMED.
. Madeline Laughead was declared incompetent and a guardian for her property and person was duly appointed prior to entry of the depository order.
Cases With Similar Vibessemantic neighbors from the corpus
Citator
Authorities Cited
- Wilson v. Sandstrom, 317 So. 2d 732 (Fla. 1975)
- Terminal Flour Mills Co. v. Helix Milling Co., 423 U.S. 1053 (U.S. 1976)
- A/S Arcadia v. Gulf Ins. Co., 423 U.S. 1053 (U.S. 1976)
- Bartolo Thebaut and Franklin Glazier v. Canova, 11 Fla. 143 (Fla. 1867)
- Savage v. Winfield, 152 Fla. 165 (Fla. 1943)
- Montalvo v. State, 170 So. 2d 466 (Fla. 3d DCA 1965)
- Jules Pascul v. George Davis & Co., 170 So. 2d 466 (Fla. 3d DCA 1965)