– Florida’s Uniform Fraudulent Transfer Act (FUFTA) provides remedies for creditors, including avoidance of the transfer, attachment or provisional remedy against the assets, injunctive relief, appointment of a receiver, and levy and execution.
– Under Florida Statute § 726.109, creditors may recover judgment for the value of the asset transferred or the amount necessary to satisfy the creditor’s claim, whichever is less.
– The statute does not specifically mention punitive damages, but allows for “any other relief the circumstances require” which could potentially include punitive damages. – Florida Statute § 726.109(3) states that if a judgment is based on the value of a transferred asset, it must be for an amount equal to the value of the asset at the time of the transfer, subject to adjustments as necessary.
– Creditors seeking relief under Chapter 726 in Florida have the option to choose their remedy, either avoiding a transfer and seeking recovery against the fraudulently transferred asset or receiving a money judgment against the transferee based on the lesser of the value of the asset or the amount of the creditor’s claim.
– Florida law favors a limited interpretation of the catchall provision in the context of the Florida Uniform Fraudulent Transfer Act (FUFTA), and it is uncertain whether punitive damages can be recovered under FUFTA. 1. Missouri, Ohio, and Utah courts allow punitive damages under their respective versions of UFTA.
2. Connecticut, Colorado, and Illinois courts do not allow punitive damages under their UFTA statutes.
3. Wisconsin courts have ruled that remedies under the state’s UFTA are exclusive and punitive damages are not available.
4. Florida case law has not addressed whether FUFTA allows for punitive damages.
5. Courts should construe the FUFTA statute to give effect to legislative intent and begin with the actual language of the statute, as determined primarily from the statute’s text.
6. The FUFTA statute is unambiguous. 1. Punitive damages are not allowed under the catchall provision for money damages in the Florida Uniform Fraudulent Transfer Act (FUFTA).
2. The money judgment is limited to the value of the asset at the time of the transfer or the amount needed to satisfy the creditor’s claim, whichever is less.
3. There is no ambiguity that the measure of damages is determined by the value of the asset or the creditor’s claim, and does not include punitive damages.
4. Allowing punitive damages would go against the intent of the legislature and would convert FUFTA from a statute with express limitations on recovery into a statute designed to punish debtors and transferees.
https://www.jimersonfirm.com/blog/2017/08/punitive-damages-available-fraudulent-transfers-florida/
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