CMR DISTRIBUTORS, INC., A FLORIDA CORPORATION, CARLOS RODRIGUEZ, AND ROSA RODRIGUEZ, APPELLANTS,
v.
THE RESOLUTION TRUST CORPORATION, AS CONSERVATOR FOR PROFESSIONAL FEDERAL SAVINGS BANK, APPELLEE
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A taxpayer realizes a deductible loss on an exchange of mortgage participation interests if the interests represent legally distinct entitlements, and early withdrawal penalties on CDs do not constitute income from the discharge of indebtedness under § 108.
[1] An order requiring the deposit of funds into the registry of the court prior to judgment is considered an injunction and is reviewable as an interlocutory order.
[2] In an action at law for money damages, there is no judicial authority for an order requiring the deposit of the amount in controversy into the registry of the court prior…
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Join FLexlaw to unlock all legal intelligenceCentennial Savings Bank exchanged mortgage participation interests with FNMA, claiming a deductible loss. It also collected early withdrawal penalties…
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JORGENSON, Judge.
Carios and Rosa Rodriguez appeal from a nonfinal order denying their motion to dismiss an interpleader action. Because the order is injunctive in nature and because the trial court effectively seized and froze the Rodriguez’ assets prior to judgment, we reverse.
The Resolution Trust Corporation [RTC], as conservator for Professional Savings Bank, sued CMR Distributors, Inc., on a promissory note. The Rodriguezes were sued as guarantors. In a renewal note, the guarantors had given to the bank the right to set off, against the amount owed, any deposits they had with the bank. The renewal note specified that the right to set off did not apply to any IRA account or other tax deferred retirement account. The Rodriguezes are fiduciaries for the participants in the CMR Distributors, Inc. Profit Sharing Plan; the res of the plan consists of two certificates of deposit.
RTC sought to have the proceeds of the plan deposited into the registry of the court, questioning the tax exempt status of the plan. RTC expressed concern that the res of the plan would be withdrawn by the participants before judgment, destroying the right of set-off. The trial court denied the motion.
CMR then declared bankruptcy. RTC filed an amended complaint that included a count for interpleader of the certificates of deposit that comprised the res of the pension plan. As a basis for the interpleader action, RTC alleged that because CMR had filed for bankruptcy, the trustee in bankruptcy had a potential claim to the certificates of deposit and that competing claims to the same fund therefore existed. The Rodriguezes immediately moved to dismiss the interpleader action. The trial court denied the motion and ordered the proceeds of the pension fund deposited into the registry of the court. The Rodriguezes appeal the order denying their motion to dismiss.
We have jurisdiction to review the order pursuant to Fla.R.App.P. 9.130(a)(3)(B), which allows review of nonfi-nal orders that “grant, continue, modify, deny or dissolve injunctions.” We recognize that, as a general rule, this court has no jurisdiction to entertain an appeal from an order denying a motion to dismiss a complaint. Fineman v. Greenberg, 575 So. 2d 1310 (Fla. 3d DCA 1991).
However, even though the order on appeal denies a motion to dismiss, it effectively restrains, prior to the entry of judgment, the funds of the guarantors. An order requiring the deposit of funds into the registry of the court prior to judgment is, in effect, an order granting an injunction and is thus reviewable under Fla.R.App. P. 9.130(a)(3)(B). Konover Realty Assoc. v. Mladen, 511 So. 2d 705 (Fla. 3d DCA 1987). The order on appeal is thus reviewable as an interlocutory order. See e.g., Hernandez v. Travelers Ins. Co., 356 So. 2d 1342 (Fla. 3d DCA 1978) (district court of appeal entertained, without discussion of jurisdiction, appeal from order denying motion to dismiss interpleader).
The trial court erred in requiring the deposit of the pension fund into the registry of the court. “It is entirely settled by a long and unbroken line of Florida cases that in an action at law for money damages, there is simply no judicial authority for an order requiring the deposit of the amount in controversy into the registry of the court ... or indeed for any restraint upon the use of a defendant’s unrestricted assets prior to the entry of judgment.” Konover Realty Assoc., 511 So. 2d at 706. See also, Oxford Int’l Bank & Trust, Ltd. v. Merrill Lynch, Pierce, Fenner & Smith, Inc., 374 So. 2d 54, 56 (Fla. 3d DCA 1979) (injunction improperly froze proceeds of bank account pending outcome of suit for money damages; “contingent, unproven, and disputed claim” not sufficient to satisfy “clear legal right or interest requirement” for obtaining injunctive relief), cert. dismissed, 383 So. 2d 1199 (Fla.1980).
The RTC’s suit on the promissory notes and the guarantees remains pending; the count for interpleader in the amended complaint was clearly an improper attempt to secure a prejudgment attachment following its unsuccessful motion to have the pension funds deposited into the court’s registry. The RTC’s assertion that its right to set-off would be compromised by a release of the pension funds is not sufficient to justify a restraint of those funds and “confuses the question of the ability to obtain a judgment with the question of the ability to satisfy a judgment.” Oxford Int’l Bank & Trust, Ltd., 374 So. 2d at 56.
Reversed and remanded with directions to dismiss the count for interpleader and release the fund from the court’s registry.
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Minty v. Meister Financialgroup, Inc., 97 So. 3d 926 (Fla. 4th DCA 2012)…unt into the court registry was, in effect, an order granting a temporary injunction and is thus reviewable under Florida Rule of Appellate Procedure 9.130(a)(3)(B) (2011) as an interlocutory order. See CMR Distribs., Inc. v. Resolution Trust Corp., 593 So. 2d 593, 594 (Fla. 3d DCA 1992) (“An order requiring the deposit of funds into the registry of the court prior to judgment is, in effect, an order granting an injunction and is thus reviewable under [Florida Rule of Appellate Procedure] 9.130(a)(3)(B) ... a…
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Hughes v. First Fed. Sav. & Loan Ass'n, 621 So. 2d 557 (Fla. 4th DCA 1993)…ules of Appellate Procedure. The order in question requires appellants to deposit mortgage payments into the registry of the court as they accrue and is reviewable as an order granting an injunction. CMR Distributors, Inc. v. Resolution Trust Corp., 593 So. 2d 593 (Fla. 3d DCA 1992). Appellee sued to foreclose its mortgage on appellants’ property alleging that appellants were delinquent since June 1992. By way of answer and affirmative defenses [*558] appellants sought rescission of the mortgage transaction…
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Rosasco v. Rosasco, 641 So. 2d 493 (Fla. 1st DCA 1994)…ing certain funds in an escrow account and thereby lose control and use of the funds pending the resolution of this litigation, the trial court’s order is in the nature [*495] of an injunction. CMR Distributors, Inc. v. Resolution Trust Corporation, 593 So. 2d 593 (Fla. 3d DCA 1992); Konover Realty Associates, Ltd. v. Mladen, 511 So. 2d 705 (Fla. 3d DCA 1987). As such, it was incumbent upon the wife to show: (1) irreparable harm; (2) no adequate remedy at law; (3) a clear legal right to relief; and (4) that t…1 / 2
Previewing 3 of 15 citing cases — full citator treatment, depth of discussion, and citing context are member features.
Join FLexlaw to unlock all legal intelligenceAuthorities Cited
- Oxford Int'l Bank & Tr., Ltd. v. Merrill Lynch, 374 So. 2d 54 (Fla. 3d DCA 1979)
- Harris v. Fla. Dep't OF Labor & Emp. Sec., 374 So. 2d 54 (Fla. 3d DCA 1979)
- Konover Realty Assocs., Ltd. v. Mladen, 511 So. 2d 705 (Fla. 3d DCA 1987)
- Fineman v. Greenberg, 575 So. 2d 1310 (Fla. 3d DCA 1991)
- Delida Hernandez and Matias Hernandez v. Travelers Ins. Co., 356 So. 2d 1342 (Fla. 3d DCA 1978)