In short: In Abdo v. Abdo (Fla. 2d DCA 2019), siblings claimed interests in websites their brother controlled and obtained a constructive trust and an appointed trustee. The court reversed both. The claim was derivative, so the company was the proper beneficiary; the court lacked jurisdiction over two foreign entities; the property wasn’t specifically identified; and the trustee was effectively a receiver appointed without due process.
A constructive trust is a powerful remedy: the court declares that property held by one person belongs in equity to another. It also has strict requirements.
The Facts
Three siblings claimed beneficial interests in six websites and their income, controlled by their brother through a company called Social Media, Inc. and related entities. They sued for a declaratory judgment and, derivatively for the company, for breach of fiduciary duty. The trial court imposed a constructive trust and later appointed a trustee.
The Decision
The Second District reversed both orders (Nos. 2D18-2270 & 2D18-2764, Aug. 7, 2019):
- Wrong beneficiary: the fiduciary duty claim was brought derivatively for the company, so the company, not the individual siblings, would be the proper beneficiary.
- Jurisdiction: the court had no personal jurisdiction over two foreign entities whose property was swept in.
- No specific property: a constructive trust must attach to identifiable, traceable property.
- A disguised receivership: appointing a trustee to control the businesses was effectively a receivership, entered without the notice, hearing, and findings a receivership requires.
Why It Matters for Estates and Trusts
Constructive trusts appear constantly in probate litigation: property taken from a parent before death, assets diverted by a fiduciary. The same rules apply. Identify the specific property, the right beneficiary, and the court’s jurisdiction, and ask for a receiver by name if control of a business is needed.
Lessons
- Plead direct and derivative claims carefully. They lead to different remedies.
- Trace the property.
- Emergency control of assets requires due process.
Source: Abdo v. Abdo, Nos. 2D18-2270 & 2D18-2764 (Fla. 2d DCA Aug. 7, 2019).
Watch the Oral Argument
This is the recording of the actual oral argument, posted on the channel. What lawyers and judges say at argument is not the ruling; the decision is summarized above.
Social Media Empire Torn Apart by Family Lawsuit — Constructive Trust Fight in Florida Court
Go Deeper
Frequently Asked Questions
What is a constructive trust in Florida?
An equitable remedy declaring that specific property held by one person belongs to another, usually to prevent unjust enrichment.
Why was the constructive trust reversed in Abdo v. Abdo?
It named the wrong beneficiary for a derivative claim, reached entities outside the court’s jurisdiction, didn’t identify specific property, and the trustee appointment was effectively a receivership without due process.
Can a court take control of a family business in a dispute?
Through a receivership, but only with notice, a hearing, and findings.
What is a derivative claim?
A claim brought on behalf of a company for harm to the company; any recovery belongs to the company.
Talk to a Florida litigation lawyer
Weidner Law, P.A. handles Florida probate litigation and appeals from St. Petersburg. If you need a probate appeal lawyer, call (727) 954-8752 or email weidner@mattweidnerlaw.com.
Read the law yourself, free: the full Florida Probate Code and Probate Rules and the Florida Trust Code are on floridarules.net.
This article is general information about Florida law, not legal advice about your situation. Reading it, watching the videos, or contacting the firm does not create an attorney-client relationship. Every case turns on its own facts, and past results do not guarantee a similar outcome. The hiring of a lawyer is an important decision that should not be based solely upon advertisements.
