McClandon v. Dakem & Associates, LLC

219 So. 3d 269 (2017)

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McClandon v. Dakem & Associates, LLC

Florida District Court of Appeal
219 So. 3d 269 (2017)

  • Written by Rose VanHofwegen, JD

Facts

Dakem and Associates, LLC (Dakem) (plaintiff) was attempting to collect a 12-year-old judgment against Joeann McClandon (defendant), who owned controlling interests in 11 limited-liability companies (LLCs). To satisfy the judgment, Dakem filed supplementary proceedings to reach distributions to McClandon from her LLCs. The trial court granted Dakem a charging order against McClandon’s transferable interests in the LLCs, appointed a receiver to take control of four of her LLCs’ finances as acting chief financial officer, and authorized the receiver to make financial-management decisions. McClandon appealed.

Rule of Law

Issue

Holding and Reasoning (Per curiam)

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Casebooks

Business Associations

Key Terms

  • Limited-Liability CompanyAlso known as an "LLC," generally, a popular type of business association that affords its equity owners not only the same limited-liability protections as a corporation, but also operational and organizational flexibility similar to the general partnership. Generally, the company is treated as a separate entity from its equity owners. However, for tax purposes, the company is usually disregarded as a separate entity, such that its income, deductions, profits, losses, asset basis, and other items are typically allocated to its individual equity owners, in proportion to their ownership interests.
  • Judgment CreditorPrevailing party in a lawsuit who is entitled to receive money in satisfaction of his judgment.
  • Judgment debtorA person against whom a monetary judgment has been rendered.
  • Charging OrderA lien on a judgment debtor's transferable interest. A judgment creditor may foreclose on an interest subject to a charging order to satisfy an unpaid judgment.

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