Cadle Co. v. Jay

907 So. 2d 634, 2005 Fla. App. LEXIS 11972, 2005 WL 1761985
CourtDistrict Court of Appeal of Florida
DecidedJuly 27, 2005
DocketNo. 3D03-2142
StatusPublished
Cited by1 cases

This text of 907 So. 2d 634 (Cadle Co. v. Jay) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cadle Co. v. Jay, 907 So. 2d 634, 2005 Fla. App. LEXIS 11972, 2005 WL 1761985 (Fla. Ct. App. 2005).

Opinions

GREEN, J.

The Cadle Company (“Cadle”), purchaser and holder of a New York judgment1 [635]*635against appellees Barry and Ronnay Jay, appeals a final judgment declaring this foreign judgment to be unenforceable in the State of Florida due to a lack of personal jurisdiction. We conclude that the trial court erred in its determination that this foreign judgment was not entitled to be domesticated and given full faith and credit in Florida. Accordingly, we reverse.

I. NEW YORK LITIGATION

The underlying New York litigation, which resulted in the foreign judgment at issue, arose as a result of a $350,000 commercial note and letter of guaranty executed by the Jays in favor of Connecticut Bank and Trust Company, N.A. (“CBT”). Pure Perfection, Ltd., a New York Corporation owned by the Jays, was also an obligor on the note. Eventually, the Jays defaulted on the note.

The New Connecticut Bank and Trust Company (“NCBT”), as successor in interest to CBT, filed suit on the note and guaranty against the Jays and Pure Perfection. After suit was filed, NCBT went into receivership and the Federal Deposit Insurance Corporation (“FDIC”) was appointed as its receiver. Efforts were made, to no avail, to have the Jays personally served with the complaint and summons.

Following these efforts, FDIC made application for entry of an order directing an alternative manner of service of the summons and complaint pursuant to section 308(5), New York Civil Practice Law and Rules (1991).2 The court denied this request, without prejudice, observing in pertinent part that,

... while plaintiffs [sic] papers set forth certain efforts to locate defendants neither the telephone company or [sic] the Department of Motor Vehicles have been contacted.

FDIC subsequently renewed its application for alternative service upon the Jays3 [636]*636pursuant to section 308(5). In support of this renewed application, FDIC presented its attorney’s affidavit detailing attempts to personally serve the Jays.

In particular, the attorney averred that a local process server had been sent to personally serve the Jays at their New York residence. The server reported that the Jays had moved and sold their home. A copy of the recorded deed to the home was presented to confirm that the home had been sold. The deed also reflected that the Jays had been represented by counsel in the real estate transaction. This counsel, however, had refused to accept service of process on behalf of the Jays or to reveal their whereabouts. Through a subsequent inquiry, the attorney averred that he learned that the Jays were receiving mail at a New York post office box address. Service was attempted on the Jays at that address. Those mailings were not acknowledged by the Jays nor was that process returned by the post office. A postal trace and computer database search tracked the Jays to an Arizona address. However, when a Tucson process server attempted to serve the Jays at this address, it was learned that it was a private post office box inside a “Mail Boxes Etc.” Although the Jays were reportedly receiving mail at that location, the process server was unable to effectuate service upon them.

In response to the court’s prior order that the plaintiff had not contacted the telephone company or the Department of Motor Vehicles in its efforts to locate the Jays, the affidavit asserted that the attorney had, in fact, called directory assistance in both the New York and Arizona areas, but neither had any listing for the Jays. Additionally, the affidavit attached the results of motor vehicle searches conducted in both states. The Arizona search revealed no listing for the Jays, while the New York search showed them still residing at their former residence.

Based upon this affidavit, FDIC requested an order directing alternative service upon the Jays. Specifically, it was requested that the Court authorize service of the summons and complaint by mail to the New York and Arizona post office box addresses where the Jays appeared to have been receiving their mail, as well as by publication in the local New York and Arizona newspapers.

The trial court granted this motion for alternative service of process.4 Service of process was thereafter effectuated as described above. When there was no timely response, the New York trial court, on July 1, 1992, entered a final default judgment against the Jays.5

Thereafter, Cadle purchased this New York judgment. Cadle eventually located the Jays in Florida and on August 5, 2002, recorded the New York judgment in Miami-Dade County pursuant to the Florida Enforcement of Foreign Judgments Act.6 Notice of the recordation was given to the Jays by the Clerk of Court.

II. FLORIDA LITIGATION

After Cadle commenced domestication and enforcement proceedings in Florida, the Jays moved to quash the notice of recording foreign judgment pursuant to [637]*637section 55.509(1), Florida Statutes. The trial court conducted a hearing, at which Mr. Jay admitted that he had learned of this foreign judgment as early as 1999, but took no steps to challenge it in New York prior to the commencement of Cadle’s action in Florida. Despite this admission, the court below granted Cadle’s motion to quash based upon its conclusion that under the applicable New York law, the New York court lacked personal jurisdiction to enter a final default judgment against the Jays.

Essentially, the lower court found that, contrary to the representations made to the New York judge, Cadle’s predecessor in interest never contacted the telephone company or Department of Motor Vehicles. Rather, based solely upon representations made by the Jays’ counsel, the trial court found that FDIC’s investigator had consulted with a local police department in New York State and that this police inquiry failed to disclose that Mr. Jay had surrendered his New York driver’s license to authorities in Florida. Had FDIC made inquiry with the New York police department, the trial court concluded that it would have been on notice to inquire into Florida’s motor vehicle registrations to learn of the Jays’ residential address.7 Accordingly, the trial court quashed Ca-dle’s Notice of Recording of Foreign Judgment on grounds that Cadle’s attorneys had not been diligent enough in its efforts to personally locate the Jays.

Cadle timely took the instant appeal, and argues that because this foreign judgment was facially valid on its record, it was entitled to be given full faith and credit and that the Florida trial court improperly “second guessed” the New York court’s finding as to its jurisdiction under New York law. We agree.

III. LAW

The Full Faith and Credit Clause of the United States Constitution requires that foreign judgments be recognized. See U.S. Const. art. IV, § 1; Nichols v. Nichols, 613 So.2d 137, 139 (Fla. 4th DCA 1993). Such judgments may be collaterally attacked for either lack of jurisdiction or extrinsic fraud. Id. at 139; Hinchee v. Golden Oak Bank, 540 So.2d 262 (Fla. 2d DCA 1989); see also § 55.509(1), Fla. Stat. (2001).

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Bluebook (online)
907 So. 2d 634, 2005 Fla. App. LEXIS 11972, 2005 WL 1761985, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cadle-co-v-jay-fladistctapp-2005.