The Palm Beach appeals court was in the middle of the adult entertainment industry– sort of. …. And a family fight after dad died: over a business with, who else, right?….. the widow, stepmother & stepchildren. Control. Money. Lawsuits. Enter the Florida estate litigators.
July 23, 2014 4th DCA Opinion on Personal Jurisdiction & Injunction
- The Appeals court for Palm Beach and Broward Counties is Florida’s 4th District Court of Appeal
- The 4th DCA is located in West Palm Beach and hears probate appeals as well as appeals of injunctions and legal battles over family-owned businesses
- An opinion issued just 3 days ago by the 4th DCA dealt with a family owned and operated adult entertainment establishment in Michigan
- There was a Family Voting Trust which owned the businesses
- Each beneficiary of the family voting trust was given a 1/5 interest in shares of stock
- The father = managing trustee
Father Dies in 2010 — Stepmother & Stepson Sign Stock Purchase Agreement
- The father died in 2010
- The stepmother (and surviving spouse) became the managing trustee
- The stepmother and widow also inherited the deceased father’s 1/5 interest
- She controlled the bank accounts
- It took 2/3 vote to remove the trustee
- A stepson and the stepmother agree to buy the stepson’s interest
- They sign a stock purchase agreement and Florida law applies
- Venue = Broward County, Florida
Stepchildren Remove Stepmother as Trustee
- The step children removed the stepmother as the trustee
- The remaining beneficiaries seized control of the family business
- At the heart of the family business lawsuit were allegations that unlawfully opening bank accounts and illegally diverting profits away from the stepmother
Stepmother Sues in Ft. Lauderdale (Broward County)
- In the Ft. Lauderdale lawsuit over the family owned business
- A stepson filed a motion to dismiss for lack of personal jurisdiction
- The stepmother filed a motion for a temporary injunction
- The stepson lost his motion to dismiss: the trial court found that it had personal jurisdiction over him
- The stepmother won the temporary injunction
- The 4th DCA reversed
Q: Who should read this opinion issued just days ago by the Palm Beach Appeals Court?
Answer: Anyone who is involved with
- stock purchase agreements
- trusts
- contracts
- forum selection clauses– (which can NOT operate as the sole basis for Florida to exercise jurisdiction over an objecting non resident Defendant)
- Florida choice of law or governing law clauses
- temporary injunctions
Here’s the link to read the entire opinion for free: http://4dca.org/opinions/July%202014/07-23-14/4D14-37.op.pdf