LOUIS A. CAGGIANO, APPELLANT,
v.
ROBERT A. BUTTERWORTH, ATTORNEY GENERAL OF THE STATE OF FLORIDA, APPELLEE
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The Second District Court of Appeal reversed a trial court's forfeiture of the appellant's homestead property under Florida's RICO Act, holding that Article X, Section 4 of the Florida Constitution protects homestead property from forfeiture even when used in criminal enterprise, and certified a question to the Florida Supreme Court regarding this constitutional protection.
Homestead property is constitutionally protected from forfeiture under the RICO Act. Article X, Section 4 of the Florida Constitution provides absolute protection to homestead property except for three enumerated exceptions (taxes, obligations for purchase/improvement/repair, and labor performed), and forfeiture based on criminal use does not fall within any of these exceptions.
[1] Homestead property is constitutionally protected from forced sale or any court judgment acting as a lien, absent specific exceptions.
[2] Forfeiture of homestead property resulting from its use in a criminal enterprise is not an exception to constitutional homestead protections.
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Join FLexlaw to unlock all legal intelligence“Article X, section 4 of the Florida Constitution provides homestead property will not be subject to forced sale or any court judgment that acts as a lien on such property.”
Establishes the constitutional foundation for homestead protection that the court found violated by RICO forfeiture
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Join FLexlaw to unlock all legal intelligenceLouis Caggiano was convicted of one count of racketeering and sixteen counts of bookmaking. Three bookmaking incidents occurred at his personal reside…
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HALL, Judge.
The appellant presents six issues for review; however, since we find merit in his argument regarding the constitutional protection afforded homestead and that issue is dispositive of the case, we do not reach the other issues.
The appellant was convicted of one count of racketeering and sixteen counts of bookmaking. Three of the bookmaking incidents for which the appellant was convicted took place at his personal residence. Consequently, the state sought forfeiture of the appellant’s homestead pursuant to section 895.05(2)(a), Florida Statutes (1989), on grounds the property was “used in the course of, intended for use in the course of, derived from, or realized through conduct in violation of” chapter 895, Florida Statutes, the Florida RICO Act. After striking the appellant’s homestead defense, among others, the trial court entered a final summary judgment of forfeiture in favor of the state. The' appellant contends the trial court erred in striking his homestead defense and finding, pursuant to DeRuyter v. State, 521 So. 2d 135 (Fla. 5th DCA 1988), that homestead property is subject to forfeiture under the RICO Act. We agree.
Article X, section 4 of the Florida Constitution provides homestead property will not be subject to forced sale or any court judgment that acts as a lien on such property. In the instant case, a forfeiture is certainly a judgment that acts as a lien on homestead property and, as the court impliedly held in DeRuyter v. State, a forced sale.
The state does not dispute that the property at issue is homestead property; however, it asserts DeRuyter as authority for the proposition that there is an exception to homestead protection in instances where the homestead is used in a criminal enterprise. The state therefore asks us to agree with the DeRuyter court and hold that the purpose of the homestead provision is to protect such property from forced sale for the debts of the owner and not to immunize real property for use in a criminal enterprise.
Florida homestead exemption laws have always been liberally construed in favor of the claim in order to acknowledge the beneficial purpose for which those laws were created, i.e., to preserve home and shelter for the family, so as to prevent the family from becoming public charge. In the Matter of Hersch, 23 B.R. 42 (M.D.Fla.1982). See also Deem v. Shinn, 297 So. 2d 611 (Fla. 4th DCA 1974).
Article X, section 4 provides three exceptions to the protection of homestead property. Those exceptions relate only to: (1) taxes and assessments on the property; (2) obligations for the purchase, improvement, or repair of the property; and (3) labor performed on the property.
Based on the foregoing authority, we cannot agree with the holding of our sister court in DeRuyter. In addition to stating the purpose of the homestead exemption too narrowly, DeRuyter fails to reconcile that forfeiture of homestead as a result of criminal enterprise does not fall within any of the exceptions enumerated in our constitution.
Since we note conflict with the Fifth District’s holding in DeRuyter, we certify the following question to the supreme court:
WHETHER FORFEITURE OF HOMESTEAD UNDER THE RICO ACT IS
FORBIDDEN BY ARTICLE X, SECTION 4 OF THE FLORIDA CONSTITUTION?
Accordingly, we reverse the trial court’s entry of summary judgment in favor of the state and remand the cause for further proceedings consistent herewith.
DANAHY, A.C.J., and LEHAN, J., concur.
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Butterworth v. Caggiano, 605 So. 2d 56 (Fla. 1992)…BARKETT, Chief Justice. We have for review Caggiano v. Butterworth, 583 So. 2d 347, 348 (Fla. 2d DCA 1991), in which the district court certified the following question of great public importance: 1 Whether forfeiture of homestead under the RICO Act is forbidden by article X, section 4 of the Florida Constitution? We answer the…
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Fishbein v. Palm Beach Sav. & Loan Ass'n, 585 So. 2d 1052 (Fla. 4th DCA 1991)…he Palm Beach property. But, because the basis of the judgment, the loan to Mr. Fishbein, did not fall within any of the exceptions enumerated in our state constitution the Bank cannot execute on the Palm Beach property. See Caggiano v. Butterworth, 583 So. 2d 347 (Fla. 2d DCA 1991) (criminal enterprise forfeiture judgment not one of the constitutional exceptions to homestead exemption).2 The fact [*1055] that Mr. Fishbein used the proceeds to pay off existing mortgages and back property taxes did not change…
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Prieto v. E. Nat'l Bank, 719 So. 2d 1264 (Fla. 3d DCA 1998)…y the judgment creditor from operating as a lien on such property. See Demura v. County of Volusia, 618 So. 2d 764, 755 (Fla. 5th DCA 1993) (lien by county code enforcement board may not serve as lien on homestead property); Caggiano v. Butterworth, 583 So. 2d 347, 348 (Fla. 2d DCA 1991) (forfeiture of homestead property pursuant to Racketeer Influenced and Corrupt Organizations Act is prohibited by state constitution); Volpitta v. Fields, 369 So. 2d 367, 369 (Fla. 4th DCA 1979) (“Although money judgments are…
Authorities Cited
- In re the Est. of Frank C. Deem v. Shinn, 297 So. 2d 611 (Fla. 4th DCA 1974)
- DeRUYTER v. State, 521 So. 2d 135 (Fla. 5th DCA 1988)