In short: A judgment creditor argued that insiders used a mortgage foreclosure to strip the debtor’s only asset, and asked the court in proceedings supplementary to hold the new company liable. The trial court declined. On July 25, 2012, the Third District affirmed in a one-word per curiam decision with no written opinion.
The Facts
Because the Third District affirmed without an opinion, the facts here come from the arguments presented on appeal, not from findings written by the appellate court. A condominium sales company obtained a judgment for unpaid sales commissions against a development entity. According to the creditor, the developer’s only real asset was the condo project itself.
The creditor argued that investors connected to the developer, who already held a second mortgage on the project, formed a new company. That company took an assignment of the first mortgage, foreclosed it, and bought the property at the foreclosure sale. The developer was left with nothing a creditor could reach.
The creditor then used proceedings supplementary in Miami-Dade circuit court to try to make the new company answer for the judgment. It argued the new company was a mere continuation of the debtor and that the transaction showed the badges of fraud listed in Florida’s fraudulent transfer statute. The new company argued the creditor had notice through the recorded lis pendens, failed to intervene in the foreclosure within the time the lis pendens statute allows, and that a public foreclosure sale is not a fraudulent transfer. The trial court declined to hold the new company liable.
The Decision
The Third District affirmed on July 25, 2012, in a per curiam decision that consists of one word: affirmed. A PCA like this tells you the trial court’s ruling stands, but it does not tell you why. The appellate court may have agreed with any one of the new company’s arguments, or simply found no reversible error on the record. A PCA is not precedent and cannot be cited as authority for any of the legal theories argued.
The Law
Proceedings supplementary under section 56.29 let a judgment creditor bring third parties into the original case when they may hold property that belongs to the debtor. The statute now also lets the court hear fraudulent transfer claims under chapter 726 and enter money judgments against transferees, but those claims must be raised by a supplemental complaint. The badges of fraud are listed in section 726.105.
The lis pendens statute, section 48.23, is the other half of this story. Someone with an unrecorded interest who does not intervene in a foreclosure within 30 days after the lis pendens is recorded generally loses the ability to enforce that interest against the property. That rule protects buyers at foreclosure sales and is a major hurdle for creditors who wait until after the sale to act.
Current law (2026): Section 56.29 was substantially rewritten in 2014 (ch. 2014-117) and amended again in 2016 and 2023; it now expressly allows chapter 726 claims against transferees by supplemental complaint. The 2011 trial-court proceedings predate those changes.
Lessons
- If you hold a judgment against a company whose main asset is real estate, watch the public records for any foreclosure on that property and act while the case is pending.
- A foreclosure brought by insiders is not automatically a fraudulent transfer. The creditor still has to prove the claim, and a public sale makes that harder.
- Proceedings supplementary are a powerful tool, but fraudulent transfer theories must be pleaded properly under the current version of section 56.29.
- A PCA ends the appeal but says nothing about the law. Do not rely on it as a holding either way.
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.
Proceedings Supplementary: Did Insiders Use a Foreclosure to Wipe Out a Judgment Creditor? | Real Estate Sales Force v. Mutual Reliance
Go Deeper
- The Florida Foreclosure Sale: Timing, Redemption, Surplus Funds, and When You Have to Move
- Someone Who Owed You Money Died. How to Collect From an Estate in Florida
- How Appeals Work in Florida: The 30-Day Deadline, Costs, and What a PCA Means
Frequently Asked Questions
What are proceedings supplementary in Florida?
They are a post-judgment procedure under section 56.29 that lets a judgment creditor bring in third parties who may hold the debtor’s property or owe the debtor money. The court can order that property applied to the judgment and, in some cases, enter money judgments against people who received fraudulent transfers.
Can a foreclosure sale be a fraudulent transfer in Florida?
Creditors sometimes argue that insiders used a foreclosure to move assets out of reach. Courts are generally reluctant to undo a public foreclosure sale on that theory, and the creditor must prove actual or constructive fraud under chapter 726. In this case the trial court refused to impose liability and the appeal was affirmed without opinion, so the court never explained which argument it accepted.
What happens if I don't intervene after a lis pendens is recorded?
Under section 48.23, a person holding an unrecorded interest in the property who does not intervene within 30 days after a lis pendens is recorded generally cannot enforce that interest against the property after the sale. A creditor who waits may lose the chance to protect its position after the sale.
What does a PCA mean in a Florida appeal?
A PCA, or per curiam affirmance, means the appellate court affirmed the trial court without writing an opinion. The losing side usually cannot seek review in the Florida Supreme Court, and the decision has no value as precedent for the arguments raised. The trial court ruling stands.
Talk to a Florida foreclosure defense lawyer
Weidner Law, P.A. has defended Florida homeowners in foreclosure and foreclosure appeals for more than 25 years. If you need a foreclosure defense lawyer, call (727) 954-8752 or email weidner@mattweidnerlaw.com.
Read the law yourself, free: every Florida statute and court rule is 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.
