Death to Olmstead?
House Bill 253 is awaiting Governor Scott’s signature to help deal with the Olmstead problem. On June 24, 2010, the Florida Supreme Court ruled that a judgment creditor may foreclose on an LLC member’s interest to enforce its judgment.
House Bill 253 would change the current law, although it says that it is just clarifying current law, so that a judgment creditor could only obtain a charging order against a member in a multi-member LLC and could only foreclose upon a single member LLC if certain procedures were followed. Remember, a charging order only gives the judgment creditor the right to any distributions made from the LLC but gives them no management or voting privileges.
I will let you know once Governor Scott has signed the bill into law as it will give legal practitioners some comfort that the multi-member LLC is again safe from creditors.
To learn more about what business entity may be right for you, please contact the law firm of Wood, Atter & Wolf, P.A. to set up a consultation.
