### D ISTRICT 

### C OURT 

### O F 

### A PPEAL 

### O F 

### T HE 

### S TATE 

### O F 

### F LORIDA F OURTH D ISTRICT

JOHN A. KOSTOGLOU , Appellant,

v.

JOHN FORTUNA , Appellee

.

No. 4D 19

- 168

[ February 19, 2020 ]

Appeal from the Circuit Court for the Fifteenth Judicial Circuit, Palm Beach County ; Peter D. Blanc , Judge; L.T. Case No. 50

- 2018

- CA

- 000777

- XXXX

- MB

. Matthew B. Weissberg of the Law Office of Matthew B. Weissberg, P.A., West Palm Beach, for appellant.

Mark E. Pena of the Law Office of Mark E. Pena, P

. A

. , Tampa, for appellee.

D AMOORGIAN , J

. John A. Kostoglou (“ C reditor”) appeals an order granting him a charging order against John Fortuna’s (“ D ebtor”) interest in
, but precluding any distributions from
, a limited liability company (“LLC”)

. We affirm the order as to the granting of a charging order against Debtor’s interest without further comment

. However, w e reverse part of the order denying C reditor the right to receive D ebtor’s distributions from the LLC

. By way of background, C reditor obtained a judgment against D ebtor in Ohio. After domesticatin g the foreign judgment, C reditor sought to satisfy his judgment by obtain ing a charging order against D ebtor’s interest and rights to distributions in a multi

- mem ber LLC pursuant to section 605.0503, Florida Statutes

. Debtor holds a 5% interest in the LLC
, which entitles D ebtor to receive a 5% distribution of earnings subject to working capital from the LLC. T he court concluded that C reditor was entitled to a charging order against D ebtor’s interest in the LLC but not to the right to distribution of earnings. This appeal follows.2 Pursuant to section 605.0503(1), Florida Statutes , “ a charging order constitutes a lien upon a judgment d ebtor’s transferable interest and requires the limited liability company to pay over to the judgment creditor a distribution that would otherwise be paid to the judgment debtor .” § 605.0503(1), Fla. Stat. (2019) (emphasis added). This concept is further reiterated in the statute under section 605.0502(2), Florida Statutes
, which states that “[a] transferee has the right to receive, in accordance with the transfer, distributions to which the transferor would otherwise be entitled. ” § 605.0502(2), Fla. Sta t. (2019)

.

This C ourt has recognized that s ection 605.0503 , Florida Statutes
, authorizes the court to enter a charging order against a judgment debtor ’ s transferrable interest and require s an LLC to pay over to the judgment creditor any distribution that would otherwise be paid to the judgment debtor. See Panksy v. Barry S. Franklin & Ass o c s ., P.A. , 264 So. 3d 961, 96 2 (Fla. 4th DCA 2019 )

. Our sister courts have also held the same. See McClandon v. Dakem & Assocs., LLC , 219 So. 3d 269, 271 (Fla. 5th DCA 2017) (“Under . . . section 605.0503, the charging order entered by the court should have only directed the LLCs to divert [ the debtor’s] r ights to the LLCs’ profits and distributions to [ the creditor] .”); Capstone Bank v. Perry

- Clifton Enter s ., LLC , 230 So. 3d 970, 971 (Fla. 1st DCA 2017) ( “A charging order is ‘ a r e medy that a creditor of a member in an LLC . . . can receive from a court that instructs the entity to give the creditor any distributions that would otherwise be paid to the . . . member from the entity.’” ) (quoting Alan S. Gassman et al., After Olmstead: Will a Multiple

member LLC Continue to Have Charging Order Protecti on?
, F LA

. B.J.
, Dec. 2010, at 8, 8)

. Accordingly, we reverse in part the charging order to the extent that it denied C reditor’s claim to D ebtor’s share of distributions from the LLC and remand for entry of a charging order requir ing the LLC to pay over to C reditor any distribution that would otherwise be paid to D ebtor

. Affirmed in part, r evers ed in part, and remanded

.

G ROSS and K LINGENSMITH , JJ.
, concur.

* * *

Not final until disposition of timely filed motion for rehearing.