In an issue without prior precedent in the Florida courts, the 2d District Court of Appeal addressed an important question regarding the amount of time a party has to challenge a fraudulent transfer. In the recently decided case, the court ruled that a creditor waited too long because the period for filing claims started when the creditor learned of the existence of the allegedly fraudulent transfer, not when it discovered that the transfer was a fraudulent one.
The origin of the business relationship between a St. Petersburg-based landlord, F/R 550, LLC and F/R 3329, LLC, and its tenant, National Auto Service Centers, Inc., was the execution of two 30-year leases in 2005. National, which was in the auto repair business, ran two of its repair shops at a pair of properties owned by the F/R companies. Two years later, National sold off some of its locations, including both of the shops located in the F/R-owned properties. The buyers executed promissory notes to National, which it subsequently assigned to its parent company. By late 2008, nobody was making rent payments to F/R. The landlord sued and obtained a $2.1 million judgment.