FIRST NATIONAL BANK OF LEESBURG, APPELLANT,
v.
HECTOR SUPPLY COMPANY, A FLORIDA CORPORATION, ET AL., APPELLEES
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First National Bank of Leesburg appeals a summary judgment allowing garnishment of a joint checking account held by Noah Peterson and his wife to satisfy Peterson's individual judgment debt. The court affirmed, holding that a joint checking account where either spouse can unilaterally withdraw funds does not constitute an estate by the entireties and is therefore subject to garnishment for an individual spouse's debts.
The joint checking account is not an estate by the entireties and is therefore subject to garnishment for Noah Peterson's individual debt. Because either joint depositor has the individual power to alienate the account by withdrawing its contents without the other's consent, the account cannot qualify as an estate by the entireties, which by definition is individually inalienable.
[1] A joint bank account where either depositor can withdraw funds without the other's consent does not constitute an estate by the entireties for the purpose of garnishment.
[2] The ability of either spouse to unilaterally alienate funds from a joint bank account is incompatible with the legal definition of an estate by the entireties.
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Join FLexlaw to unlock all legal intelligence“If the bank account is construed as an estate by the entireties the law is clear that it would not be subject to garnishment for the debt of the husband alone.”
Establishes the general rule that estates by the entireties are protected from individual spouse's debts
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Join FLexlaw to unlock all legal intelligenceHector Supply Company obtained a judgment against the partnership of Roher and Peterson. To collect this judgment, Hector Supply Company initiated gar…
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The appellee was the plaintiff in the original action, and prevailed in its law suit against the partnership of Roher and Peterson. Thus, the appellee became a judgment creditor and found it necessary to bring a garnishment action against the First National Bank of Leesburg, garnishee, to collect the judgment from the judgment debtor, appellee. The subject matter against which the garnishor proceeded was a bank account maintained by defendant Noah Peterson and Mayre Lou Peterson, his wife. The trial court entered summary judgment in favor of the appellee, holding that Peterson was liable to the appellee for the judgment debt, and further, that the bank account could be subjected to garnishment.
The issue on this appeal is whether the trial court was correct in holding that the bank account was subject to payment of the individual debts of Noah Peterson under the garnishment proceedings. We must agree with the trial court. The appellant argues that the bank account was held as an estate by the entireties, acquiring this characteristic by virtue of being held by both husband and wife. If the bank account is construed as an estate by the en-tireties the law is clear that it would not be subject to garnishment for the debt of the husband alone. Winters v. Parks, Fla.1956, 91 So.2d 649.
The bank account in question, being held by both husband and wife, entitles either party to exercise his or her power to completely withdraw the contents of the account without the consent of the other party. These rights are set forth in the application cards executed by the Petersons in connection with their opening the joint checking account at the First National Bank of Leesburg, garnishee.
In the case of Glasser v. Columbia Federal Savings & Loan Association, Fla.1967, 197 So.2d 6, at page 7, the court stated in a footnote that
“It seems clear that the right of a spouse to make a transfer of funds from a checking account held as an estate by entirety upon one signature is based upon express delegation of such agency in the creation of the account. Hagerty v. Hagerty, Fla. 1951, 52 So.2d 432. This case in fact involved only survivorship and not alienability. Cf. Rader v. First Nat’l Bank in Palm Beach, Fla.1949, 42 So.2d 1. Whether the existence of an individual power of alienation is inherently incompatible with this estate, which by definition is individually inalienable, is not treated at length in the opinions. The argument is quite strong for the conclusion that, at least as to property transferable by delivery of possession alone, the estate cannot exist because of incompatibility with the entireties’ doctrine. Holman v. Mays, 1936, 154 Or. 241, 59 P.2d 392, 395.”
It appears to us that the above authority supports the holding of the trial court that the legal effect of the Petersons’ maintenance of this joint checking account was not such as to create an estate by the en-tireties. Since either of the joint depos*206itors have the power to alienate the account by closing it out, and can achieve this alienation individually and without consent of the other, we cannot construe this particular type of personalty as an estate by the entireties.
Therefore, based upon the principle stated in Glasser, supra, we hereby affirm the order being appealed.
The appellant has also filed a motion for attorney fees in connection with this appeal. Section 77.18 Fla.Stat., F.S.A., contains no provision relating to attorney’s fees to be awarded to a garnishee who appeals a trial court’s judgment allowing garnishment of a defendant’s property. Therefore, the motion is denied.
Affirmed.
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Sheeler v. United States Bank OF Seminole, 283 So. 2d 566 (Fla. 4th DCA 1973)…ent (or execution) to pay the individual debt of one of the parties ? The answer is “no” and we so hold. The trial court had answered this question in the affirmative, relying upon First National Bank of Leesburg v. Hector Supply Co., Fla.App.1970, 236 So. 2d 204. Subsequently, as we discovered, the Supreme Court of Florida quashed and took the opposite tack in First National Bank of Leesburg v. Hector Supply Co., Fla.1971, 254 So. 2d 777. It is clear from the terms of the bank signature card that an estate…
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Snyder v. Dinardo, 700 So. 2d 726 (Fla. 2d DCA 1997)…es-crowed funds. The interpretation by the trial court of such a “requirement” by Hector Supply II is both strained and erroneous. Our supreme court in Hector Supply II had before it for review First National Bank of Leesburg v. Hector Supply Co., 236 So. 2d 204 (Fla. 3d DCA 1970) (Hector Supply I), that held that a joint bank account that provided for individual withdrawal may not be held as an estate by the entireties. The supreme court reversed and quashed the decision of the Third District, holding inst…
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First Nat'l Bank OF Leesburg v. Hector Supply Co., 257 So. 2d 83 (Fla. 3d DCA 1972)…PER CURIAM. Whereas, the judgment of this court was entered on June 2, 1970 (236 So. 2d 204) affirming the summary judgment of the Civil Court of Record for Dade County, Florida, in the above styled cause; and Whereas, on review of this court’s judgment, by certiorari, the Supreme Court of Florida, by its opinion and judgment filed Octobe…
Previewing 3 of 4 citing cases — full citator treatment, depth of discussion, and citing context are member features.
Join FLexlaw to unlock all legal intelligenceAuthorities Cited
- Hagerty v. Hagerty, 52 So. 2d 432 (Fla. 1951)
- Ila Winters v. Parks, 91 So. 2d 649 (Fla. 1956)
- Rhoda Glasser v. Columbia Fed. Sav. & Loan Ass'n of Miami Shores, 197 So. 2d 6 (Fla. 1967)
- Rader v. First Nat. Bank in Palm Beach, 42 So. 2d 1 (Fla. 1949)