Historical case note, updated with current-law context. On June 24, 2010, the Florida Supreme Court decided Olmstead v. Federal Trade Commission. The opinion addressed creditor remedies against interests in single-member Florida LLCs under the statute then in effect.
What the Decision Established
The court’s opinion held that the former charging-order provision did not prevent execution against the debtor’s full single-member LLC interest. The case involved an FTC judgment following an advance-fee credit-card scheme.
The ruling did not establish that all LLCs fail to protect owners, or that a firm’s clients are automatically insulated from future decisions. It highlighted the importance of reviewing the precise statute, ownership arrangement, and creditor remedy.
What to Use for Planning Today
Florida’s current section 605.0503 expressly distinguishes single-member and multi-member LLCs, and preserves specified exceptions. Read our updated Florida charging-order guide for those rules.
A Strong Plan Needs Ongoing Review
Appropriate entities, insurance, exemptions, and trust arrangements may provide strong protection together. The plan must fit the assets, ownership, governing law, and foreseeable obligations.
Foreign planning can add another layer in suitable circumstances, but it does not eliminate U.S. court authority or guarantee a result. Review an existing plan with counsel as circumstances change, and obtain advice before moving assets when a claim is known or anticipated.
Comments (2)
[…] order only” remedy and directly reach LLC assets to satisfy a creditor. One example was the Olmstead Case in FL, where the court determined that since the LLC was single member, there was no harm in accessing […]
Quote: Courts have a habit of manipulating the law to fit what they want.. and disregard established case law, or even statutory construction… Unquote
That’s so darned true and we’re seeing it in spades at the US government level. What’s next?!