Opinion ID: 75842
Heading Depth: 1
Heading Rank: 3

Heading: Remittitur of Nippon Funds Held Pursuant to the Achievers Defendants Security Interest

Text: 56 The Achievers Appellants argue that the district court erred by dismissing the action as to them and distributing the proceeds to Nippon. They claim that they were entitled to a jury trial on Nippon's fraudulent conveyance claim. Nippon responds that the Achievers Defendants' claim was extinguished by operation of law. 57 The PFH note was governed by Florida law. In Florida, where notes secured by a mortgage come into possession of the maker, such notes and pro tanto the mortgage securing them are regarded as thereby extinguished as to third persons, no matter what would be the effect of the reissue of the notes between the maker and a second holder. Walter J. Dolan Prop., Inc. v. Vonnegut, 133 Fla. 854, 184 So. 757, 762 (Fla.1938). In Georgia, an alter ego is shown where the corporation and its owners have such unity of interest and ownership that they lack separate personalities. United States v. Fidelity Capital Corp., 920 F.2d 827, 837 (11th Cir. 1991). The effect of disregarding the corporate entity is that the corporation and the [entity] who dominates it are treated as one person, so that any act committed by one is attributed to both, and if either is bound, ... both are equally bound. Id. at 838 n. 37. 58 The note was transferred from Elizabeth Connelly to MFIP, and from MFIP to Achievers, via a collateral assignment. The Achievers Defendants admitted that MFIP and PFH were alter egos of Matthews. R1-1-11 at ¶ 43; R4-69-2 at ¶ 1. The assignment of the note and mortgage to MFIP upon express instructions from Matthews was effectively a transfer to PFH, and thus extinguished the obligations of the note. Further, under the terms of the Settlement Agreement, the Achievers Defendants released their rights under the PFH notes. Based on the merger of the note, the Achievers Appellants rights were extinguished. The district court did not err in disbursing the Release Funds.