THE HONORABLE JEFFREY H. ATWATER CHIEF FINANCIAL OFFICER AND STATE OF FLORIDA DEPARTMENT OF FINANCIAL SERVICES, PETITIONERS,
v.
CITIBANK FEDERAL SAVINGS BANK, JORGE MARTIN, LOURDES MARTIN, AND NATIONAL EQUITY RECOVERY SERVICES, INC., RESPONDENTS

Fla. 3d DCA | 2012-08-15
No. 3D12-1057
Before SUAREZ and FERNANDEZ, JJ., and SCHWARTZ, Senior Judge.
96 So. 3d 1000 Florida District Court of Appeal, Third District (2012) Positive Treatment
Cited by 2 cases

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Synopsis

The Florida Chief Financial Officer sought a writ of prohibition to prevent a circuit court from ordering the Department of Financial Services to disburse unclaimed property funds from the State Treasury. The court granted the petition, holding that the circuit court lacked jurisdiction to compel disbursement without the Department first determining the claimant's entitlement to the funds through administrative remedies.


Holding

The court held that the circuit court lacks jurisdiction to compel disbursement of unclaimed funds without the Department first determining the claimant's entitlement. The trial court's order to show cause and sanctions were unauthorized because claimants must exhaust administrative remedies by filing a claim with the Department of Financial Services before pursuing judicial remedies.


Headnotes

[1] Unclaimed funds deposited with the Chief Financial Officer pursuant to section 43.19, Florida Statutes, are subject to the procedures for claiming and disbursement outlin…

[2] The Chief Financial Officer has exclusive authority to examine and approve claims for unclaimed funds under chapter 717, Florida Statutes.

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Key Quotes

“The trial court is without jurisdiction to compel the Department to disburse funds without the Department first having determined the entitlement of the claimant to the funds held by the Department.”

Establishes the core holding that the circuit court lacked jurisdiction to order disbursement without prior administrative determination of entitlement.

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Facts & Procedural History

The circuit court issued an order to show cause directing the Chief Financial Officer to appear and explain why unclaimed funds held by the Department…

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Opinion of the Court
SUAREZ, J.

SUAREZ, J.

Jeffrey H. Atwater, Chief Financial Officer of the State of Florida (“Chief Financial Officer”) petitions this Court for a writ of prohibition directed to the circuit court to prevent it from enforcing an order to show cause issued for the Chief Financial Officer to appear before the circuit court, and to prevent disbursement of funds being held in the Treasury of the State of *1001Florida as unclaimed property by the Department of Financial Services (“the Department”). Further, the Chief Financial Officer petitions to prohibit the lower court from enforcing its order directing the Chief Financial Officer to remit the unclaimed funds being held by the Department for deposit into the State Treasury for the use of the State School Fund. We grant the petition for writ of prohibition.

First, upon request of the trial court, this Court relinquished jurisdiction to the lower tribunal to vacate its order to show cause entered on March 21, 2012. The trial court vacated the order to show cause; therefore, the contempt issue of the Chief Financial Officer’s failure to appear is now moot. The sanctions ordered by the trial court were unauthorized pursuant to section 43.19, Florida Statutes (2011). The trial court is without jurisdiction to compel the Department to disburse funds without the Department first having determined the entitlement of the claimant to the funds held by the Department. See O’Connor v. Zane, 79 So.3d 105 (Fla. 1st DCA 2012) (holding that petitioner failed to exhaust administrative remedies by first filing claim for unclaimed property with Department of Financial Services to obtain a determination of entitlement to the unclaimed funds prior to pursuing judicial remedies).

The Department of Financial Services is vested with the sole authority to make financial determinations as to unclaimed funds. See Art. IV, § 4(c), Fla. Const, (conferring upon the State’s chief fiscal officer exclusive authority to examine and approve all claims against the state for unclaimed funds); § 43.19, Fla. Stat. (2011) (“In every case in which the right to withdraw money deposited as hereinbefore provided has been adjudicated or is not in dispute and the money has remained so deposited for 5 years or more unclaimed by the person, firm, or corporation entitled thereto, on or before December 1 of each year the judge, or one of the judges, of the court shall direct that the money be deposited with the Chief Financial Officer to the credit of the State School Fund ....) (emphasis added); § 215.965, Fla. Stat. (2011) (“[A]ll moneys in the State Treasury shall be disbursed by state warrant, drawn by the Chief Financial Officer upon the State Treasury and payable to the ultimate beneficiary.”); § 716.07(1), Fla. Stat. (2012) (“Any person who claims any property, funds, or money delivered to the Treasurer or Chief Financial Officer ... shall, ... file a verified claim with the Chief Financial Officer, setting forth the facts upon which the party claims to be entitled to recover the money or property.”); § 716.07(2), Fla. Stat. (2011) (“The Chief Financial Officer shall approve or disapprove the claim.”); § 717.1244, Fla. Stat. (2011) (stating that the Department determines the merits of all claims pursuant to applicable statutory, regulatory, common, and case law in accordance with the Florida Disposition of Unclaimed Property Act); see also § 717.126, Fla. Stat. (2011) (providing that the burden shall be upon the claimant to establish with the Department of Financial Services entitlement to the unclaimed property by a preponderance of evidence, and “[ujnless otherwise agreed by the parties, venue shall be in Tallahassee, Leon County, Florida”).

Prohibition granted.


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Citator

Cited By

  • Yergin v. Georgopolos, 217 So. 3d 155 (Fla. 3d DCA 2017)
    …n for an administrative hearing under the Florida Administrative Procedures Act. Id. § 717.126(1). Only after a claimant has exhausted these administrative procedures may she seek relief in the circuit court. See Atwater v. Citibank Fed. Sav. Bank, 96 So. 3d 1000, 1001 (Fla. 3d DCA 2012) (“The trial court is without jurisdiction to compel the Department to disburse funds without [*158] the Department first having determined the entitlement of the claimant to the funds held by the Department.”); O’Connor v. Z…

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