MICHAEL LABATO, APPELLANT,
v.
KATHRYN B. LABATO, APPELLEE
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In a marital dissolution case, the trial court impressed an equitable lien on the marital home in favor of the wife's parents to secure loans they had made to the parties. The appellate court reversed this portion of the judgment, holding that trial courts lack jurisdiction to adjudicate property rights of non-parties to the litigation, though the parents may pursue a separate action.
The trial court lacked jurisdiction to adjudicate the property rights of non-parties and therefore erred in impressing an equitable lien in favor of the wife's parents. However, the parents retain the right to institute a separate action to vindicate their claims.
[1] A trial court lacks jurisdiction to adjudicate property rights of non-parties in a dissolution action.
[2] An equitable lien may not be impressed upon marital property in favor of individuals who are not parties to the litigation.
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Join FLexlaw to unlock all legal intelligence“it does not have jurisdiction to adjudicate property rights of non-parties”
States the core holding that trial courts lack authority to bind non-parties to dissolution proceedings
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Join FLexlaw to unlock all legal intelligenceDuring a marriage dissolution, the wife claimed special equity based on loans from her parents that were allegedly used to improve homes owned by the …
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HURLEY, Judge.
The principal issue on appeal is whether the trial court erred by impressing an equitable lien on the marital home in favor of the wife’s parents who were not parties to the litigation. We answer in the affirmative and reverse.
In the dissolution action below, the wife claimed entitlement to a special equity because of several loans from her parents. She claimed that the loan proceeds had been used to improve various homes owned by the parties during their marriage. The trial court credited this testimony and awarded the wife a $25,500.00 special equity.1 Subsequently on rehearing, the trial court was advised that a loan to both parties could not support a special equity in favor of one party.2 Therefore, the court amended the final judgment and impressed an equitable lien in the amount of $25,-500.00 on the marital home in favor of the wife’s parents.
Although it is true that under extraordinary circumstances a trial court may exercise its jurisdictional power to make special provisions limiting the use of property held in common by the parties, see, e.g., Blunnie v. Blunnie, 415 So. 2d 156 (Fla. 4th DCA 1982), it does not have jurisdiction to adjudicate property rights of non-parties. Accord McCready v. McCready, 356 So. 2d 337 (Fla. 4th DCA), cert. denied, 364 So. 2d 887 (Fla.1978); Art Advertising Co. v. Associated Press, 340 So. 2d 1291 (Fla. 2d DCA 1977). Thus, we are compelled to reverse the finding of an equitable lien. Our action, however, is without prejudice to the right of the wife’s parents to institute a separate action.
With respect to the other matters on appeal, we affirm the trial court’s finding of a $5,000.00 special equity in favor of the wife. See Marsh v. Marsh, 419 So. 2d 629 (Fla.1982). Furthermore, we affirm the trial court’s decision to hold the husband solely responsible for the maintenance of the marital home prior to its sale. See Canakaris v. Canakaris, 382 So. 2d 1197 (Fla.1980). Finally, we find no abuse of discretion and, therefore, affirm the trial court’s decision not to reopen the case upon the husband’s allegation of newly discovered evidence. See Dade National Bank of Mi ami v. Kay, 131 So. 2d 24 (Fla.3d DCA), cert. denied, 135 So. 2d 746 (Fla.1961).
Affirmed in part and reversed in part.
ANSTEAD, J., and SHAHOOD, GEORGE A., Associate Judge, concur. . This was one of two special equities awarded to the wife. The second, for $5,000, is mentioned hereafter. . McCready v. McCready, 356 So. 2d 337 (Fla. 4th DCA), cert. denied, 364 So. 2d 887 (Fla.1978); Howard v. Howard, 310 So. 2d 430 (Fla. 4th DCA 1975).
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Citator
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RAY v. RAY, 624 So. 2d 1146 (Fla. 1st DCA 1993)…non-marital property the former husband owns with his brother and mother for the purpose of securing the $70,000 debt. The rule is clear that the trial court does not have jurisdiction to adjudicate property rights of non-parties. Labato v. Labato, 433 So. 2d 620 (Fla. 4th DCA 1983); McCready v. McCready, 356 So. 2d 337 (Fla. 4th DCA), cert. denied, 364 So. 2d 887 (Fla.1978). As for Mrs. Ray’s cross-appeal, there was no dispute that the marital home, which was acquired by gift to both spouses from Mr. Ray’s…
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HUA v. Dennis H.L. Tsung, 222 So. 3d 584 (Fla. 4th DCA 2017)…o allow the father to secure repayment of the loan. The court thus converted him from an unsecured creditor into a secured one. On remand, the father can only pursue the debt, if he so chooses, by instituting a separate action. See Lobato v. Lobato, 433 So. 2d 620, 621 (Fla. 4th DCA 1983) (holding the trial court impermissibly imposed an equitable lien on the property by adjudicating the rights of non-parties, but reversing without prejudice to allow the non-parties to institute a separate action). D, Attorn…
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Juliano v. August B. Juliano, 991 So. 2d 394 (Fla. 4th DCA 2008)…s father that was used to purchase the couple’s boat). However, a trial court cannot, in a dissolution proceeding, “adjudicate property rights of a non-party.” Barabas v. Barabas, 923 So. 2d 588, 590 (Fla. 5th DCA 2006); see, e.g., Lobato v. Lobato, 433 So. 2d 620, 621 (Fla. 4th DCA 1983) (trial court erred in placing lien on marital home in dissolution action in favor of former wife’s parents to satisfy a loan they had given the couple to improve their home). In this case, as in Lobato, the trial court erre…
Authorities Cited
- Canakaris v. Canakaris, 382 So. 2d 1197 (Fla. 1980)
- Marsh v. Laurel J. Ising Marsh, 419 So. 2d 629 (Fla. 1982)
- Dade Nat'l Bank OF Miami v. KAY, 131 So. 2d 24 (Fla. 3d DCA 1961)
- ART Advertising Co., Inc. v. The Associated Press, 340 So. 2d 1291 (Fla. 2d DCA 1977)
- Gideon v. Cochran, 135 So. 2d 746 (Fla. 1961)
- KAY v. Dade Nat'l Bank of Miami, 135 So. 2d 746 (Fla. 1961)
- Howard v. Howard, 310 So. 2d 430 (Fla. 4th DCA 1975)
- Blunnie v. Blunnie, 415 So. 2d 156 (Fla. 4th DCA 1982)
- Colonnades Beach Hotel v. Williams, 356 So. 2d 337 (Fla. 4th DCA 1978)
- McCREADY v. McCREADY, 356 So. 2d 337 (Fla. 4th DCA 1978)