PETER THOMAS STAVROU, ALEXANDRA STAVROU, AND BESSY STAVROU, APPELLANTS,
v.
DESTINATION BOAT CLUBS, INC.; AND ISLAND BREEZE BOAT CLUB AND RENTAL, INC., APPELLEES

Fla. 2d DCA | 2017-05-31
No. Case No. 2D16-390
WALLACE and ROTHSTEIN-YOUAKIM, JJ., Concur.
226 So. 3d 293 Florida District Court of Appeal, Second District (2017) Positive Treatment
Cited by 2 cases

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Holding

The court held that a judgment in supplementary proceedings cannot exceed the unpaid amount of the underlying judgment, but affirmed the portion of the judgment against Alexandra and Bessy.


Headnotes

[1] A judgment in an ancillary proceeding should not exceed the unpaid amount of the underlying judgment.

[2] A creditor may recover judgment for the value of an asset transferred fraudulently, or the amount necessary to satisfy the creditor's claim.

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Facts & Procedural History

Destination Boat Clubs obtained a judgment against Island Breeze, whose sole officer was Peter Stavrou. Destination then initiated supplementary proce…

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Opinion of the Court
MORRIS, Judge.

MORRIS, Judge.

Peter Thomas Stavrou, Alexandra Stav-rou, and Bessy Stavrou appeal from a final judgment upon impleader wherein the circuit court awarded Destination Boat Clubs, Inc. (Destination), a total of $59,900 in proceedings supplementary. For the reasons explained herein, we affirm in part and reverse in part.

The proceedings supplementary award was based on the final judgment entered in a breach of contract action between Destination and Island Breeze Boat Club and Rental, Inc. (Island Breeze). Peter Stavrou was the sole officer and shareholder of Island Breeze. Judgment was rendered in favor of Destination in the breach of contract action, and the circuit court awarded $10,000 (the equivalent of Destination’s escrow deposit) plus an award of attorneys’ fees and costs in the amount of $36,552.90. Destination thereafter impleaded the three Stavrous individually and initiated the proceedings supplementary, arguing that Peter improperly withheld the escrow deposit as well as $23,000 that Island Breeze earned from boat sales and that Peter improperly transferred $26,900 from Island Breeze’s bank account to a joint bank account shared by the three Stavrous. Ultimately, the circuit court entered the order on appeal, concluding (1) that Peter violated his fiduciary duties by keeping the $10,000 escrow deposit, thereby preventing Destination from recovering at least a portion of the final judgment, (2) that Peter engaged in fraudulent transfers of the $10,000 deposit, the $23,000 earned from the boat sales, and the $26,900 that was moved from the Island Breeze bank account to the Stavrous’ joint bank account, and (3) that Peter’s actions justified piercing the corporate veil. The effect of the circuit court’s order was to award all of the improperly transferred monies to Destination. Peter was held liable for the entire amount of the judgment while Alexandra and Bessy were held jointly and severally liable only for the $26,900.

On appeal, the Stavrous first argue that the circuit court erred by rendering a judgment against Peter in an amount that exceeded the amount that was owed to Destination under the original final judgment, and Destination concedes error on this point. A judgment in an ancillary proceeding1 should not be entered in excess of the unpaid amount of the underlying judgment. See § 726.109(2), Fla. Stat. (2015) (explaining that “to the extent a [fraudulent] transfer is voidable in an action by a creditor under s. 726.108(l)(a), the creditor may recover judgment for the value of the asset transferred ... or the amount necessary to satisfy the creditor’s claim” (emphasis added)); Mansolillo v. Parties by Lynn, Inc., 753 So.2d 637, 640 (Fla. 3d DCA 2000) (applying section 726.109(2) to a judgment rendered in proceedings supplementary); cf. Sec. Bank, N.A. v. BellSouth Advert. & Publ’g Corp., 679 So.2d 795, 800 (Fla. 3d DCA 1996) (quoting Henry P. Trawick, Jr., Trawick’s Florida Practice and Procedure § 33-6, at 559 (1995 ed.), for the proposition that a *295judgment should not be entered against a garnishee in excess of the unpaid amount on the judgment against a garnishment defendant “or in excess of the garnishee’s liability to the garnishment defendant” (emphasis omitted)). And here, the underlying judgment was for $46,552.90 ($10,000 for the escrow deposit plus $36,552.90 for attorneys’ fees and costs). However, we agree that Destination is entitled to recover prejudgment interest running from the date of loss. See Argonaut Ins. Co. v. May Plumbing Co., 474 So.2d 212, 215 (Fla. 1985); Mansolillo, 753 So.2d at 640. Consequently, we reverse the final judgment upon impleader in part as against Peter. We affirm the final judgment upon im-pleader as against Alexandra and Bessy.2 On remand, the circuit court should enter an amended final judgment upon impleader that reflects a judgment against Peter in an amount of $46,552.90 plus any prejudgment interest that has accrued fern the various dates of loss. The judgment against Alexandra and Bessy jointly and severally for $26,900 should remain unchanged. We find no merit in the other two points raised by the Stavrous in this appeal.

Affirmed in part, reversed in part, and remanded for proceedings in conformance herewith.

WALLACE and ROTHSTEIN-YOUAKIM, JJ., Concur.


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Cited By

  • …fers undone. This court affirmed that order on appeal, reversing only to the extent that the judgment entered against Peter Stavrou exceeded the amount of the judgment against Island Breeze. See Stavrou v. Destination Boat Clubs, Inc., No. 2D16-390, 226 So. 3d 293, 2017 WL 2373446 (Fla. 2d DCA May 31, 2017). Destination sought fees and costs generated during the proceedings supplementary against Island Breeze and Peter Stav-rou. There is no transcript of the hearing on this motion, but Destination provided a…

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