Art Advertising Co., Inc. v. Associated Press
| Decision Date | 05 January 1977 |
| Docket Number | No. 75--1797,75--1797 |
| Court | Florida District Court of Appeals |
| Parties | ART ADVERTISING CO., INC., a corporation, Appellant, v. The ASSOCIATED PRESS, a corporation, Appellee. |
Michael D. Martin, or Martin & Martin, Lakeland, for appellant.
Lester Bales, Jr., Zephyrhills, for appellee.
This is an appeal from an order entered in connection with supplemental proceedings directing a levy upon certain joint accounts.
Appellee (Associated Press) obtained a judgment against appellant, Art Advertising Co., Inc. (Art Advertising), for $3,500.70 plus costs. Upon the return of an unsatisfied execution against Art Advertising, Associated Press obtained an order appointing a special master and requiring Robert A. Artabasy, the former president of Art Advertising, to appear before the special master and give testimony in supplementary proceedings pertaining to the business and property of Art Advertising.
The special master held a hearing at which Mr. Artabasy gave testimony. The special master then entered an order finding that subsequent to the entry of the judgment, Art Advertising sold its property, to wit: a radio station, without execution of a Bulk Sales Law affidavit and immediately commenced proceedings for dissolution of the corporation. The master further found that the proceeds of the sale were placed in the trust account of Art Advertising's attorney and then turned over to Mr. Artabasy who placed them in a joint bank account with his wife in a Dade City bank. Finally, the master found that Mr. Artabasy then paid off certain corporate expenses as well as some ostensible debts of the corporation to his relatives. The balance of the funds were transferred to two joint accounts in the Exchange Bank of Winter Haven and a joint account in Winter Haven Federal Savings & Loan Association. The master recommended that Mr. Artabasy be held personally liable for the judgment.
Pursuant to the motion of Associated Press, the court then entered an order approving the master's report and directing the levy upon the three joint accounts of Robert A. Artabasy and Phyllis Artabasy, his wife, for the amount owing to Associated Press. While not parties to the suit, Robert A. Artabasy and Phyllis Artabasy joined Art Advertising in an appeal from this order.
We are compelled to reverse because the joint accounts of Mr. and Mrs. Artabasy are being subjected to levy by virtue of a proceeding in which neither of them has ever been joined as parties. Section 56.29, Florida Statutes (1975), specifically authorizes the court to require Mr. Artabasy to appear before a special master to give testimony concerning the corporation's property. However, when it was developed that the corporation's property had been transferred to third parties, it became necessary to join those third parties in the proceeding.
The case of Meyer v. Faust, 83 So.2d 847 (Fla.1955), is precisely on point. There, the plaintiff obtained a judgment against Meyer. Upon return of execution Nulla bona, supplementary proceedings were instituted whereby Meyer and his wife were directed to be examined concerning the property of Meyer. After hearing the testimony, the court concluded that Meyer's investment of certain funds into property held by Meyer and his wife as tenants by the entireties was fraudulent as to the plaintiff. The court entered an order permitting Meyer's...
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