Regions Bank v.Kaplan. Instances citing this instance

Regions Bank v.Kaplan. Instances citing this instance

III. MIKA’s obligation for MKI’s financial obligation

Trying to subject MIKA to obligation for MKI’s financial obligation, Regions claims “de facto merger,” “mere continuation,” and “fraud” under Florida law. These comparable and periodically overlapping claims ask in place whether an innovative new business replaced an adult, debt-laden organization. See, e.g., Lab Corp. of Am. v. Prof’l healing system, 813 So. 2d 266, 270 (Fla. fifth DCA). Success on any one of these three claims entitles Regions to get from MIKA the $1,505,145.93 judgment joined for areas and against MKI action.

Many times within the test, Marvin’s testimony proposed a flouting of, or neglect for, the form that is corporate. Describing the motion of cash from a single business he was able to another firm he handled, Marvin claimed: “You just take the funds from a entity and also you place it for which you require it to get, either whether it’s from your own individual account to your LLCs or even the LLCs to your account this is certainly personal. (Tr. Trans. at 339) Marvin states into the next breathing that he “trues up at the conclusion for the season,” however the documentary evidence belies the contention that Marvin “trued up” following the transfers to Kathryn and MIKA.

A. De facto merger

The Florida choices seem to require dissolution for the very first firm also in the event that organization not runs. As an example, Amjad Munim, M.D., P.A. v. Azar, 648 therefore. 2d 145, 153-54 (Fla. 4th DCA), generally seems to reject a de facto merger claim because “the technical dependence on dissolution of this predecessor business had not been founded,” also although the evidence advised that the initial company “essentially ceased operations.” Although dormant, MKI continues to be in presence, which under Florida legislation defeats the de facto merger claim.

B. Mere extension

If an organization just continues another organization’s company under a various title but with the exact same ownership, assets, and workers (among other items), Florida legislation subjects the successor business to obligation when it comes to previous business’s financial obligation. See, e.g., Centimark Corp. v. A to Z Coatings & Sons, Inc., 288 Fed.Appx. 610 (applying Florida legislation and collecting decisions). In this situation, Regions proved by (at least) a preponderance that MIKA just proceeded MKI’s company under a brand new guise. Marvin handled the 2 businesses, which both run from Marvin’s individual workplace and transact the business that is same. (Doc. 162 at 36) As explained somewhere else in this purchase, MIKA received and deployed MKI’s assets, and Marvin owned both businesses through the IRA. The provided assets, workplace, management, and ownership confirm areas’ claim that MIKA amounts to a “mere extension” of MKI under a name that is different.

Finally, Regions requests a statement that MIKA is absolutely nothing significantly more than an effort that is”fraudulent by MKI to hinder areas’ tries to fulfill the judgment action. In line with the testimony in addition to proof talked about somewhere else in this purchase, areas proved that MIKA more likely than perhaps perhaps perhaps not quantities to a fraudulent try to preclude areas’ gathering regarding the MKI judgment.

IV. Injunction

As explained throughout this purchase, the Kaplan events’ conduct shows a protracted pattern of evasion that demonstrates the need for the injunction under Section 726.108(c)(1) against another disposition by MKI or MIKA of a pastime in 785 Holdings. MK Investing and MIK Advanta, LLC, should never move a pursuit in 785 Holdings, LLC.

A legal remedy that forecloses the equitable remedy of an injunction if Kathryn, MKI, MIKA, or a Kaplan entity fraudulently transfers money to a third party, Regions can obtain a money judgment against the transferee. (Doc. 113 at 6)


At test, Marvin blamed their accountant, their attorneys, along with his IRA custodian for supposedly erroneous documents that largely supports areas’ claims. The valuations that Marvin verified, often under penalty of perjury at times, Marvin faulted Advanta for the allegedly inaccurate documents and claimed that Advanta forced Marvin to create MIKA and that Advanta invented from whole cloth. According to Marvin’s perplexing, implausible, and testimony that is often contradictory in line with the contemporaneous documents, that have been authorized as soon as the Kaplan events encountered no possibility of a detrimental judgment for the fraudulent transfer and which mainly refute the Kaplans’ assertions, we reject the Kaplan events’ defenses and conclude that areas proved the fraudulent-transfer claims (excepting the claim in line with the IRA’s transfer to MIKA of this $214,711.30 and excepting the de merger that is facto in count fourteen).

Although areas names Marvin being a defendant, the record reveals no reason to topic Marvin to liability when it comes to Kaplan entities’ transfers or even for MKI’s transfers to MIKA. Areas won a judgment action against MKI additionally the Kaplan entities, maybe maybe not against Marvin. Areas mentions purchase doubting the Kaplan parties’ movement to dismiss, which purchase observes that the “predominant fat of authority holds that a plaintiff can sue the beneficiary of the self-directed IRA when it comes to IRA’s so-called wrongdoing due to the fact self-directed IRA is certainly not a split entity that is legal its owner.” (Doc. 79 at 3 (interior quote omitted)) Although proper, the observation does not have application in this course of action because areas’ concession in footnote thirteen forecloses a fraudulent-transfer claim in line with the IRA’s transfer of cash to MIKA. The IRA owned units of MKI and MIKA, but an IRA’s ownership of an LLC provides no foundation for subjecting the IRA beneficiary to obligation for a transfer that is fraudulent or through the LLC. ——–

The clerk is directed to enter separately the following judgments:

(1) Judgment for Regions Bank and against Kathryn Kaplan within the number of $742,543.

(2) Judgment for areas Bank and against MIK Advanta, LLC, into the quantity of $1,505,145.93.

The clerk must close the case after entering judgment.

BOUGHT in Tampa, Florida.

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