Florida Statute 605.0503 | Lawyer Caselaw & Research

The 2024 Florida Statutes

Title XXXVI
BUSINESS ORGANIZATIONS

Chapter 605
FLORIDA REVISED LIMITED LIABILITY COMPANY ACT

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F.S. 605.0503

605.0503 Charging order.—

(1) On application to a court of competent jurisdiction by a judgment creditor of a member or a transferee, the court may enter a charging order against the transferable interest of the member or transferee for payment of the unsatisfied amount of the judgment with interest. Except as provided in subsection (5), a charging order constitutes a lien upon a judgment debtor’s transferable interest and requires the limited liability company to pay over to the judgment creditor a distribution that would otherwise be paid to the judgment debtor.

(2) This chapter does not deprive a member or transferee of the benefit of any exemption law applicable to the transferable interest of the member or transferee.

(3) Except as provided in subsections (4) and (5), a charging order is the sole and exclusive remedy by which a judgment creditor of a member or member’s transferee may satisfy a judgment from the judgment debtor’s interest in a limited liability company or rights to distributions from the limited liability company.

(4) In the case of a limited liability company that has only one member, if a judgment creditor of a member or member’s transferee establishes to the satisfaction of a court of competent jurisdiction that distributions under a charging order will not satisfy the judgment within a reasonable time, a charging order is not the sole and exclusive remedy by which the judgment creditor may satisfy the judgment against a judgment debtor who is the sole member of a limited liability company or the transferee of the sole member, and upon such showing, the court may order the sale of that interest in the limited liability company pursuant to a foreclosure sale. A judgment creditor may make a showing to the court that distributions under a charging order will not satisfy the judgment within a reasonable time at any time after the entry of the judgment and may do so at the same time that the judgment creditor applies for the entry of a charging order.

(5) If a limited liability company has only one member and the court orders a foreclosure sale of a judgment debtor’s interest in the limited liability company or of a charging order lien against the sole member of the limited liability company pursuant to subsection (4):

(a) The purchaser at the court-ordered foreclosure sale obtains the member’s entire limited liability company interest, not merely the rights of a transferee;

(b) The purchaser at the sale becomes the member of the limited liability company; and

(c) The person whose limited liability company interest is sold pursuant to the foreclosure sale or is the subject of the foreclosed charging order ceases to be a member of the limited liability company.

(6) In the case of a limited liability company that has more than one member, the remedy of foreclosure on a judgment debtor’s interest in the limited liability company or against rights to distribution from the limited liability company is not available to a judgment creditor attempting to satisfy the judgment and may not be ordered by a court.

(7) This section does not limit any of the following:

(a) The rights of a creditor who has been granted a consensual security interest in a limited liability company interest to pursue the remedies available to the secured creditor under other law applicable to secured creditors.

(b) The principles of law and equity which affect fraudulent transfers.

(c) The availability of the equitable principles of alter ego, equitable lien, or constructive trust or other equitable principles not inconsistent with this section.

(d) The continuing jurisdiction of the court to enforce its charging order in a manner consistent with this section.

History.—s. 2, ch. 2013-180.

F.S. 605.0503 on Google Scholar

F.S. 605.0503 on Casetext

Amendments to 605.0503

Arrestable Offenses / Crimes under Fla. Stat. 605.0503

Level: Degree
Misdemeanor/Felony: First/Second/Third

Current data shows no reason an arrest or criminal charge should have occurred directly under Florida Statute 605.0503.

Annotations, Discussions, Cases:

Cases Citing Statute 605.0503

Total Results: 7

ALVARO GORRIN RAMOS v. MISSISSIPPI REAL ESTATE DISPOSITIONS LLC

Court: Fla. Dist. Ct. App. | Date Filed: 2021-01-12T23:53:00-08:00

Snippet: judgment debtor.” § 605.0503(1), Fla. Stat. (2019). Critically, subsection 605.0503(3) further provides… Section 605.0503(3) plainly states that the charging lien provided for in section 605.0503(1) is a judgment…Mississippi with a remedy not authorized by section 605.0503 of the Florida Statutes. I. Facts … the express limitations set forth in section 605.0503, which governs a judgment creditor’s rights with…limited by the specific provisions of section 605.0503. 6 5 We review a question of law arising from

JOHN A. KOSTOGLOU v. JOHN FORTUNA

Court: Fla. Dist. Ct. App. | Date Filed: 2020-02-18T23:53:00-08:00

Snippet: distributions in a multi-member LLC pursuant to section 605.0503, Florida Statutes. Debtor holds a 5% interest …. This appeal follows. Pursuant to section 605.0503(1), Florida Statutes, “a charging order constitutes…would otherwise be paid to the judgment debtor.” § 605.0503(1), Fla. Stat. (2019) (emphasis added). This concept…2019). This Court has recognized that section 605.0503, Florida Statutes, authorizes the court to enter… 271 (Fla. 5th DCA 2017) (“Under . . . section 605.0503, the charging order entered by the court should

DANIEL PANSKY v. VICTORIA PANSKY

Court: Fla. Dist. Ct. App. | Date Filed: 2019-02-12T23:53:00-08:00

Snippet: exceeded its statutory authority pursuant to section 605.0503, Florida Statutes (2016), when it transferred …from this order that Pansky appeals. Section 605.0503(3), Florida Statutes, provides that “a charging…would otherwise be paid to the judgment debtor.” § 605.0503(1), Fla. Stat. (alterations added). For single-member…judgment creditor may satisfy the judgment. . . .” § 605.0503(4), Fla. Stat. (emphasis added). In the case of…even the most rudimentary requirements of section 605.0503[.]” Id. at 423; see also McClandon v. Dakem &

Gorrin Jr. v. Poker Run Acquisitions, Inc.

Court: Fla. Dist. Ct. App. | Date Filed: 2018-01-31T00:00:00-08:00

Citation: 237 So. 3d 1149

Snippet: remedy as Lacross is a multiple member LLC. See § 605.0503, Fla. Stat. (2015).7 Relying on Olmstead v. F.… Procedure 1.510(c), in the motion). 7 Section 605.0503(1) provides: “On application to a court of competent…against Lacross and beyond that allowed by section 605.0503. We agree. In Abukasis v. MTM Finest, Ltd…-judgment order, entered pursuant to sections 605.0503(7)(b), (c) and 726.108(1)(c)(3), Florida Statutes…which explained that amendments to former section 605.0503, previously numbered 608.433, were brought on

Capstone Bank v. Perry-Clifton Enterprises, LLC

Court: Fla. Dist. Ct. App. | Date Filed: 2017-11-30T00:00:00-08:00

Citation: 230 So. 3d 970

Snippet: application to a court for its issuance. Section 605.0503(1), Florida Statutes (2014)r provides: “On application…multiple-member LLCs, the so-called Olmstead patch. § 605.0503(3), Fla. Stat. (2014) (emphasis added).1 Accordingly…against a limited liability company of this type. § 605.0503(3), Fla. Stat. Because Christy Richards did not…amended Sec, 608.433, Fla. Stat. [replaced by § 605.0503) to clarify the exclusive remedies available to…608.433 was repealed in 2015 and became section 605.0503. See Historical and Statutory Notes, § 608.433

McClandon v. Dakem & Associates, LLC

Court: Fla. Dist. Ct. App. | Date Filed: 2017-05-26T00:00:00-07:00

Citation: 219 So. 3d 269, 2017 WL 2298443, 2017 Fla. App. LEXIS 7666

Snippet: appointing a receiver. She argues that section 605.0503, Florida Statutes (2015), permits a charging order… to appoint a receiver pursuant to subsections 605.0503(7)(c) and (d). We agree with the trial court in…which culminated in the order at issue. Section 605.0503 permits the court to enter a charging order against…distributions from the limited liability company.” § 605.0503(3), Fla. Stat. (2015). That being said, subsection…a manner consistent with this section. §§ 605.0503(7)(c)-(d). It is clear' to this Court that

Abukasis v. Mtm Finest, Ltd.

Court: Fla. Dist. Ct. App. | Date Filed: 2016-08-24T00:00:00-07:00

Citation: 199 So. 3d 421, 2016 Fla. App. LEXIS 12750, 2016 WL 4446010

Snippet: motion [sic] is granted and pursuant to Fla. Stat. 605.0503(7)(b) [and](c) and Fla. Stat. 726.108[ (l)(c)3…even the most rudimentary requirements of section 605.0503 of the Florida Statutes (2015). See Olmstead…2015) (discussing amendments to former section 605.0503 then numbered section 608.433, which were brought