ROSE R. SWARTZ, APPELLANT,
v.
ANNA LIPSKY, APPELLEE
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The court held that the trial court misapplied Fla. Stat. § 56.29(6)(a) by vacating its order finding a fraudulent transfer based solely on the transfer occurring more than a year before the judgment.
[1] A statute imposing a burden of proof on a defendant to establish the legitimacy of a transfer of property to a relative or person on confidential terms applies only when…
[2] A statute that shifts the burden of proof to a defendant to demonstrate a transfer was not fraudulent does not exempt transfers made more than one year prior to execution…
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Join FLexlaw to unlock all legal intelligencePlaintiff obtained a judgment against defendant, and in supplementary proceedings, the court found defendant fraudulently transferred $37,000 to her d…
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The appellant Rose R. Swartz, who was the plaintiff below, obtained a judgment against the appellee-defendant Anna Lip-sky on March 25, 1969, in the amount of $4,800 plus $138.65 costs. In supplementary proceedings under § 56.29 Fla.Stat., F.S.A., an order was entered on June 10, 1969, in which the trial court found the defendant had made a fraudulent transfer of $37,000 to her non-resident daughter,1 and found that notwithstanding the defendant had made advance payment of a year’s rent in a hotel in Dade County, upon learning service upon her was being sought in said proceedings she had departed this state to avoid service and was residing with her *449non-resident daughter. The order concluded by holding the defendant in contempt and imposing a 30-day jail penalty, with leave to purge the contempt by payment of the judgment within 14 days.
A petition for rehearing filed by the defendant was granted, by an order in which the defendant was directed to appear before the court at a stated time to be examined in the pending proceedings under § 56.29. Upon the subsequent hearing the court entered an order on January 22, 1970, from which the plaintiff filed this appeal. Therein the court held that the previously determined fraudulent transfer was “legal and protected” because it was shown to have been made more than a year prior to the judgment.2
The provision of the statute upon which that order was based, § 56.29(6) (a) Fla. Stat., F.S.A., provides:
“When defendant has had title to or paid the purchase price of any personal property within one year before issuance of execution to which his wife or any relative or any person on confidential terms with defendant claims title and right of possession at the time of examination, the defendant has the burden of proof to establish that such transfer or gift from him was not made to delay, hinder or defraud creditors.”
The appellant contends, and correctly so, that the order appealed from represents a misapplication of the statutory provision in question. Subsection (6) (a) of section 56.29 does not operate to exempt fraudulent transfers of personal property which are made more than a year prior to execution. Its effect is to impose upon the defendant a burden of proof, as to personal property owned or paid for by the defendant within a year prior to execution the title or right to possession of which is claimed at the time of examination by a spouse or a relative or one on confidential terms with the defendant, to establish that such transfer or gift was not made to delay, hinder or defraud creditors. Where that situation exists as to personal property prior to but not within that one year period, the defendant does not have such burden to show propriety, but the plaintiff may show fraudulent transfer was made thereof.
Accordingly, the order appealed from is reversed, and the cause is remanded for further proceedings.
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Ball v. Balint Papp, 317 So. 2d 801 (Fla. 4th DCA 1975)…or to the service of process upon the defendant. These factors being present, the plaintiff in execution has the burden of proof to establish the alleged fraudulent conveyance. Tischler v. Robinson, 79 Fla. 638, 84 So. 914 (1920); Swartz v. Lipsky, 241 So. 2d 448 (3d DCA Fla.1970); 37 Am.Jur.2d, Fraudulent Conveyances, § 216 (1968). The Trial Court heard the testimony of the plaintiff in execution, the im-pleaded third party wife, and another witness (daughter of the plaintiff), and an examination of the tr…