{"id":3744,"date":"2010-06-24T09:39:36","date_gmt":"2010-06-24T16:39:36","guid":{"rendered":"http:\/\/www.keytlaw.com\/azllclaw\/?p=3744"},"modified":"2016-11-16T08:23:56","modified_gmt":"2016-11-16T15:23:56","slug":"olmstead-vs-ftc","status":"publish","type":"post","link":"https:\/\/www.keytlaw.com\/azllclaw\/2010\/06\/olmstead-vs-ftc\/","title":{"rendered":"Olmstead vs. Federal Trade Commission"},"content":{"rendered":"

This Florida Supreme Court case<\/a> involved the attempt by the Federal Trade Commission to enforce collection of a $10 million judgment it got against Shaun Olmstead and Julie Connell for their involvement with entities that operated an advance-fee credit card scam. The issue before the court was:<\/p>\n

“Whether, pursuant to Fla. Stat. \u00a7 608.433(4), a court may order a judgment-debtor to surrender all, ‘right, title, and interest’ in the debtor\u2018s single-member limited liability company to satisfy an outstanding judgment.”<\/p><\/blockquote>\n

Olmstead argued that the issue should be answered in the negative because the only remedy available to a creditor who has a judgment against a member of a Florida single-member LLC is a charging order.\u00a0 The court said:<\/p>\n

“we rephrase the certified question as follows: \u2015Whether Florida law permits a court to order a judgment debtor to surrender all right, title, and interest in the debtor\u2018s single-member limited liability company to satisfy an outstanding judgment. We answer the rephrased question in the affirmative.”<\/p><\/blockquote>\n

The reason the court allowed the creditor to get to the assets of the single member Florida LLCs is because the court ruled:<\/p>\n

“that there is no reasonable basis for inferring that the provision authorizing the use of charging orders under section 608.433(4) establishes the sole remedy for a judgment creditor against a judgment debtor\u2018s interest in single-member LLC.<\/p><\/blockquote>\n

Arizona LLC law is different from Florida’s LLC law.\u00a0 Arizona’s LLC member charging order protection is contained in Arizona Revised Statutes Section 29-655 which states:<\/p>\n

“A. On application to a court of competent jurisdiction by any judgment creditor of a member, the court may charge the member\u2019s interest in the limited liability company with payment of the unsatisfied amount of the judgment plus interest. To the extent so charged, the judgment creditor has only the rights of an assignee of the member\u2019s interest.<\/p>\n

B. This chapter does not deprive any member of the benefit of any exemption laws applicable to his interest in the limited liability company.<\/p>\n

C. This section provides the exclusive remedy by which a judgment creditor of a member may satisfy a judgment out of the judgment debtor\u2019s interest in the limited liability company<\/strong><\/span>.”<\/p><\/blockquote>\n

Because of this statute, an Arizona court should not reach the result of the Florida Supreme Court in Olmstead vs. FTC.\u00a0 See “Olmstead Decision Does Not Make All Single Member LLCs Useless<\/a>.”<\/p>\n","protected":false},"excerpt":{"rendered":"

This Florida Supreme Court case involved the attempt by the Federal Trade Commission to enforce collection of a $10 million judgment it got against Shaun Olmstead and Julie Connell for their involvement with entities that operated an advance-fee credit card scam. The issue before the court was: “Whether, pursuant to Fla. Stat. \u00a7 608.433(4), a court may order a judgment-debtor to surrender all, ‘right, title, and interest’ in the debtor\u2018s single-member limited liability company to satisfy an outstanding judgment.” Olmstead argued that the issue should be answered in the negative because the only remedy available to a creditor who has a judgment against a member of a Florida single-member LLC is a charging order.\u00a0 The court said: “we rephrase the certified question as follows: \u2015Whether Florida law permits a court to order a judgment debtor to surrender all right, title, and interest in the debtor\u2018s single-member limited liability company to satisfy an outstanding judgment. We answer the rephrased question in the affirmative.” The reason the court allowed the creditor to get to the assets of the single member Florida LLCs is because the court ruled: “that there is no reasonable basis for inferring that the provision authorizing the use of charging orders under section 608.433(4) establishes the sole remedy for a judgment creditor against a judgment debtor\u2018s interest in single-member LLC. Arizona LLC law is different from Florida’s LLC law.\u00a0 Arizona’s LLC member charging order protection is contained in Arizona Revised Statutes Section 29-655 which states: “A. On application to a court of competent jurisdiction by any judgment creditor of a member, the court may charge the member\u2019s interest in the limited liability company with payment of the unsatisfied amount of the judgment plus interest. […]<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"footnotes":""},"categories":[31,63,6],"tags":[58],"class_list":["post-3744","post","type-post","status-publish","format-standard","hentry","category-asset-protection","category-charging-orders","category-lawsuits","tag-charging-order"],"yoast_head":"\nOlmstead vs. Federal Trade Commission<\/title>\n<meta name=\"description\" content=\"Arizona LLC attorney Richard Keyt discusses the single member LLC case of Olmstead vs. FTC and why it should not affect Arizona LLCs - single or multimember.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.keytlaw.com\/azllclaw\/2010\/06\/olmstead-vs-ftc\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Olmstead vs. Federal Trade Commission\" \/>\n<meta property=\"og:description\" content=\"Arizona LLC attorney Richard Keyt discusses the single member LLC case of Olmstead vs. FTC and why it should not affect Arizona LLCs - 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