Florida Supreme Court rules debtor may not use single-member LLC to shield assets from judgment creditor

In a much anticipated decision, the Florida Supreme Court closed a statutory loophole that permitted debtors to use a wholly owned limited liability company (LLC) to put their assets beyond the reach of their judgment creditors. In Olmstead v. FTC, Case No. SC08-1009 (Fla. June 24, 2010), the Florida Supreme Court ruled that a court may order a judgment debtor to surrender all right, title, and interest in the debtor's single-member Florida limited liability company to satisfy an outstanding judgment.

Filed under:
USA, Florida, Insolvency & Restructuring, Litigation, Foley & Lardner LLP, Debtor, Interest, Limited liability company, Debt, Commercial law, Exclusive jurisdiction, Federal Trade Commission (USA), Supreme Court of the United States, Florida Supreme Court
Authors:
Stephen A. (Steve) Crane , Gardner F. Davis , Mary F. Kendrick , William J. McKenna
Location:
USA
Firm:
Foley & Lardner LLP