Business and Casel Law Update for February 5, 2011 (Volume IV, Issue 6)

Manuel Farach

Debtor-creditor cases, including mortgage foreclosures, dominate this week’s Update. First, the Florida Supreme Court, upon a certified question from the Eleventh Circuit Court of Appeals, held that a bankruptcy debtor who waives the benefits of the homestead protections of Article X, Section 4 of the Florida Constitution, can increase their personal property exemption up to $4,000. This decision resolves a dispute amongst several bankruptcy courts. Osborne v. Dumoulin, — So.3d —-, 2011 WL 320986 (Fla. 2011). Then, the Florida Supreme Court held that state law claims are tolled during bankruptcy irrespective of whether the claim was dismissed for lack of jurisdiction in bankruptcy court. Krause v. Textron Financial Corp., — So.3d —-, 2011 WL 320989 (Fla. 2011).

The Fourth District Court of Appeal also issued two opinions of particular note, beginning with a decision which held that a court may not strike a notice of voluntary dismissal, even in the face of allegations there was fraud on the court, unless the defendant is seriously harmed by the notice of voluntary dismissal. Pino v. Bank of New York Mellon, — So.3d —-, 2011 WL 309441 (Fla. 4th DCA 2011). The court also held that arbitration cannot be compelled if doing so impacts the determination of remedial statutes such as the Florida Deceptive and Unfair Trade Practices Act. McKenzie v. Betts, — So.3d —-, 2011 WL 309318 (Fla. 4th DCA 2011).

This week’s Update can be found here: Issue 6