CARMEL LEE LABELLE, APPELLANT/CROSS-APPELLEE,
v.
RUPERT C. LABELLE, APPELLEE/CROSS-APPELLANT

Fla. 5th DCA | 1993-08-27
No. 92-2989
THOMPSON, J., and HAUSER, J.C., Associate Judge, concur.
624 So. 2d 741 Florida District Court of Appeal, Fifth District (1993) Positive Treatment
Cited by 6 cases

AI-generated. These summaries, headnotes, and key points are machine-generated and may contain errors or omissions. Always verify against the full opinion text below. Not legal advice.

Synopsis

In this Florida dissolution proceeding appeal, the court addressed whether an ex-wife could intervene as a judgment creditor in her ex-husband's divorce and whether she could recover a joint judgment against both the ex-husband and his current wife for fraud. The court affirmed the intervention and constructive trusts imposed on fraudulently obtained property, but reversed the portion holding the current wife jointly liable for debts not attributable to her.


Holding

The court held that the ex-wife's intervention was proper and timely consented to by the ex-husband. Constructive trusts imposed on properties purchased with fraudulently obtained proceeds are not protected by Florida's homestead exemption. However, the current wife cannot be held as a joint and several obligor for debts not attributable to her, even if those debts arose from fraud, because the judgment against her lacked sufficient basis in the pleadings and facts specific to her.


Headnotes

[1] A party who consents to another party's intervention in a legal action cannot later object to that intervention on appeal.

[2] Homestead and exemption protections do not apply to properties purchased with fraudulently obtained, traceable proceeds subject to a constructive trust.

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Key Quotes

“These protections do not apply to properties which are purchased with fraudulently obtained, traceable proceeds and which are, therefore, subject to the imposition of a constructive trust.”

Establishes that homestead exemptions do not shield property purchased with fraudulent proceeds from constructive trust remedies.

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Facts & Procedural History

Rupert LaBelle was involved in a dissolution proceeding with his current wife, Carmel LaBelle. His ex-wife, Dorothy LaBelle, intervened in the proceed…

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Opinion of the Court
COBB, Judge.

COBB, Judge.

The core issue of this appeal is the propriety of an ex-wife’s intervention, as a judgment creditor, in a dissolution proceeding between her ex-husband and his current wife — resulting in a final judgment which, inter alia, awarded the ex-wife a joint judgment for $92,500.00 against both of the other parties. Rupert LaBelle and his current wife, Carmel LaBelle, have appealed that judgment and the order allowing the intervention of the ex-wife, Dorothy LaBelle. We consider their appellate arguments seriatim.

First, it should be noted that Rupert LaBelle consented to Dorothy’s intervention in the action below. He cannot now raise an untimely objection thereto, and the intervention did not constitute fundamental error. See Castor v. State, 365 So. 2d 701, 703 (Fla.1978). We also reject Rupert’s argument that, despite his fraudulent use of Dorothy’s funds, he is entitled to the protection afforded by Article X, Section 4 of the Florida Constitution in respect to realty in Citrus County and $1,000.00 of designated personal property. These protections do not apply to properties which are purchased with fraudulently obtained, traceable proceeds and which are, therefore, subject to the imposition. of a constructive trust. See Mayer v. Cianciolo, 463 So. 2d 1219 (Fla. 3d DCA 1985). Moreover, we find no suggestion in the record before us that Rupert LaBelle properly preserved this issue for appeal.

In respect to the appeal of Carmel La-Belle, we note that she also failed to raise any objection to the intervention of Dorothy LaBelle in the trial below. We, therefore, reject Carmel’s argument in this regard. Her other contentions are that the trial court erred in (1) its failure to make an equitable distribution of property between herself and Rupert; and (2) entering a money judgment against herself based upon fraud, particularly when that judgment was not supported by the pleadings of the intervenor. We cannot agree that the trial court erred in failing to equitably distribute properties between Rupert and Carmel for the simple reason that, given the constructive trusts imposed in favor of the intervenor, there were no marital assets remaining to distribute. There is sufficient record evidence to support the imposition of constructive trusts on various properties held by Rupert and Carmel based on fraud committed by them against Dorothy LaBelle.1

We do agree, however, with Carmel that she cannot be included as a joint and several obligor in the $92,500.00 judgment entered below. This is so because that judgment arises from debts (a Connecticut judgment against Rupert and subsequent support delinquencies) not attributable to Carmel. Consequently, it was error for the trial court to include Carmel in the monetary judgment, and we reverse in that respect.

AFFIRMED IN PART, REVERSED IN PART, AND REMANDED FOR FURTHER PROCEEDINGS CONSISTENT WITH THIS OPINION.

THOMPSON, J., and HAUSER, J.C., Associate Judge, concur. . We note that the efficacy of the judgment’s purported self-execution in respect to the convey-anee of legal title to real property situated in Massachusetts has not been raised by this appeal.


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Cited By

  • Johnee Ann Alle Hirchert v. Hirchert Fam. Tr., 988 So. 2d 63 (Fla. 5th DCA 2008)
    …t may be that at a later point when, and if, there is an attempt to convey the property an issue may arise as to the validity of the Homestead status based, in part, on the source of the funds used to purchase the property. LaBelle v. LeBelle, [sic] 624 So. 2d 741 (Fla. 5th DCA 1993)[.] That issue is one for another day and another court.…
  • Hirchert Fam. Tr. v. Johnee Ann Alle Hirchert, 65 So. 3d 548 (Fla. 5th DCA 2011)
    …ead exemption. The courts recognize an exception to the homestead protection if the property was acquired with funds generated by fraudulent activity and a constructive trust is necessary to prevent unjust enrichment. See, e.g., LaBelle v. LaBelle, 624 So. 2d 741, 742 (Fla. 5th DCA 1993) (stating, “[T]he protection[s] afforded by Article X, Section 4 of the Florida Constitution ... do not apply to properties which are purchased with fraudulently obtained, traceable proceeds and which are, therefore, subject…
  • Stanley v. Stanley, 811 So. 2d 861 (Fla. 5th DCA 2002)
    …ring was held. Because the husband did not object, but rather agreed below to the entry of this injunction, this issue cannot be raised for the first time on appeal. See Carnell v. Carnell, 398 So. 2d 503 (Fla. 5th DCA 1981); cf. LaBelle v. LaBelle, 624 So. 2d 741, 742 (Fla. 5th DCA 1993)(holding where husband in trial court consented to intervention of third-party in his dissolution case, he cannot object on appeal to that party’s intervention). AFFIRMED. PETERSON and PLEUS, JJ., concur.…

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