Capstone Bank v. Perry-Clifton Enterprises, LLC

Capstone Bank challenges the trial court’s order finding that an Alabama divorce judgment obtained by former wife Christy Richards constitutes a charging order that has priority over the charging order issued to Capstone Bank in this proceeding, each regarding the former husband’s membership interest in Perry-Clifton Enterprises, LLC, a Florida limited liability company.

A charging order is “a remedy that a creditor of a member in an LLC (or of a partner in a limited partnership) can receive from a court that instincts the entity to give the creditor any distributions that would otherwise be…