Travis Bond v. Caresync, Inc.
CourtDistrict Court of Appeal of Florida
Date FiledMarch 10, 2021
Docket2D20-1510
StatusPublished
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Full Opinion
NOT FINAL UNTIL TIME EXPIRES TO FILE REHEARING
MOTION AND, IF FILED, DETERMINED
IN THE DISTRICT COURT OF APPEAL
OF FLORIDA
SECOND DISTRICT
TRAVIS BOND; LISA BOND; JOY )
POWELL; AMY GLEASON; KAREN )
GITTENS; ALLISON GULEY; ROBERT )
CRUTCHFIELD; JOHN TULLI; IAN )
SIGALOW; JOEL KRIKSTON; ASHOK )
SUBRAMANIAN; DOUGLAS FREE; )
DAVID FREE; DAVID LEFELL; RUBEN )
KING-SHAW; and MANO KALATHIL, )
)
Appellants, )
)
v. ) Case No. 2D20-1510
)
JOSEPH J. LUZINSKI, as Assignee )
for the Assignment for the Benefit of )
Creditors of CareSync, Inc., )
)
Appellee. )
)
Opinion filed March 10, 2021.
Appeal pursuant to Fla. R. App. P. 9.130
from the Circuit Court for Hillsborough
County; Steven Scott Stephens, Judge.
Scott A. Cole of Cole, Scott & Kissane,
P.A., Miami, for Appellants.
Jocelyn Ramos and Robin Taylor Symons
of Gordon Rees Scully Mansukhanis, Miami,
for Appellant, Mano Kalathil.
Brett M. Amron, Dana R. Quick and Peter J.
Klock, II, of Bast Amron LLP, Miami, for
Appellee.
SLEET, Judge.
Appellants were the officers and directors of CareSync, Inc. In 2018,
CareSync ceased all operations, and Joseph Luzinski was named its assignee. On
February 7, 2020, Luzinski filed the underlying breach of fiduciary duty action against
Appellants (collectively, the Officers and Directors). The Officers and Directors
subsequently filed their Motion to Dismiss for Improper Venue Based Upon a Mandatory
Forum Selection Clause. The Officers and Directors now challenge the trial court's
order denying that motion. Because Luzinski was acting within his authority as the
assignee when he filed suit in Hillsborough County, we affirm.
CareSync was incorporated in Delaware but operated out of Tampa. The
assignment document designated Luzinski as the assignee of all of CareSync's assets
and provided as follows:
The assignee shall take possession of, and protect
and preserve, all such assets and administer the estate in
accordance with the provisions of chapter 727, Florida
Statutes, and shall liquidate the assets of the estate with
reasonable dispatch and convert the estate into money,
collect all claims and demands hereby assigned as may be
collectible, and pay and discharge all reasonable expenses,
costs, and disbursements in connection with the execution
and administration of this assignment from the proceeds of
such liquidations and collections.
....
To accomplish the purposes of this assignment, the
assignor hereby appoints the assignee its true and lawful
attorney, irrevocable, with full power and authority to do all
acts and things which may be necessary to execute the
assignment hereby created; to demand and recover from all
persons all assets of the estate; to sue for the recovery of
such assets; to execute, acknowledge, and deliver all
necessary deeds, instruments, and conveyances; and to
appoint one or more attorneys under her or him to assist the
assignee in carrying out her or his duties hereunder.
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(Emphasis added.)
Pursuant to the assignment document, Luzinski petitioned the court for an
assignment for the benefit of creditors. And the trial court granted the assignment and
ultimately extended it pursuant to section 727.108(4), Florida Statutes (2018), finding
that "it is in the best interests of [CareSync]'s estate for [Luzinski] to operate
[CareSync]'s business for a period of time longer than the initial 45 calendar days
prescribed by statute" and authorizing Luzinski to "operate [CareSync]'s business
through December 5, 2018."
On February 7, 2020, Luzinski, "as Assignee . . . for the Assignment for
the Benefit of Creditors of Assignor CareSync," filed a complaint for breach of fiduciary
duty against the Officers and Directors. As to venue, Luzinski alleged that the suit
"stemm[ed] from actions that occurred in Hillsborough County," that several of the
Officers and Directors were residents of Hillsborough County, and that all of the Officers
and Directors had operated a business venture and committed tortious acts within the
State of Florida.
The Officers and Directors responded by filing a motion to dismiss for
improper venue, citing "the mandatory forum selection clause under Article TWELFTH
of CareSync Inc.'s Revised Articles of Incorporation." That article provides as follows:
Unless the Corporation consents in writing to the selection of
an alternative forum, the Court of Chancery in the State of
Delaware shall be the sole and exclusive forum for (i) any
derivative action or proceeding brought on behalf of the
Corporation[;] (ii) any action asserting a claim of breach of
fiduciary duty owed by any director, officer or other
employee of the Corporation to the Corporation or the
Corporation's stockholders[;] (iii) any action asserting a claim
arising pursuant to any provision of the General Corporation
Law, this Restated Certificate[,] or the Bylaws[;] or (iv) any
action asserting a claim governed by the internal affairs
doctrine . . . .
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Following a hearing, the trial court denied the Officers and Directors'
motion, concluding that the right to consent to suit being brought in a venue other than
Delaware was not a "general corporate operation" but rather was part of the rights
assigned to Luzinski.
On appeal, the Officers and Directors challenge this ruling, first arguing
that Luzinski did not have the authority to file this lawsuit, let alone consent to
jurisdiction outside of Delaware, because doing so amounted to the performance of the
general corporate operations of CareSync and his authority to perform general
corporate operations expired as of December 6, 2018, per order of the court. While we
agree that Luzinski did not have authority to conduct the business of CareSync after
December 5, 2018, we cannot agree that the filing of the instant lawsuit fell under the
general corporate operations of CareSync.
Section 727.108(1)-(13) sets forth the duties of an assignee. Subsection
(4) states that the assignee shall "[c]onduct the business of the assignor for a limited
period not to exceed 45 calendar days, if doing so is in the best interest of the estate."
Subsection (4) also states that the court may extend the assignee's authorization to
conduct the business of the assignor. Here, the court did just that in an order that
extended Luzinski's authority to conduct the business operations of CareSync through
December 5, 2018.
But section 727.108(4) lists only one of the duties of the assignee; the
remainder of the statute enumerates twelve others. Specifically, subsection (1) states
that "[t]he assignee shall . . . [c]ollect and reduce to money the assets of the estate,
whether by suit in any court of competent jurisdiction or by public or private sale."
Luzinski's filing of the instant breach of fiduciary duty suit does not fall under his
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subsection (4) duty of conducting the general business operations of CareSync but
rather is part of Luzinski's subsection (1) duty to collect the assets of CareSync and
reduce them to money.
Furthermore, the time limit applied to the duty to conduct the business of
the assignor in subsection (4) of the statute—seemingly to prevent the assignee from
continuing to operate the defunct corporation as a going concern—is not found in any
other subsection of section 727.108. By its plain language, section 727.108(1) does not
limit the time within which an assignee must collect and reduce to money the assets of
the assignor. Accordingly, at the time Luzinski filed the complaint, he was acting within
his statutory authority to bring suit to recover the assets of the estate.
The Officers and Directors also argue that even if Luzinski had the
authority to bring the suit, the provision naming Delaware as the choice of forum in the
CareSync's Twelfth Article of Incorporation is a mandatory provision that precludes him
from filing this suit in Hillsborough County. Again, we must disagree. " 'Generally, a
forum selection clause is mandatory where the plain language used by the parties
indicates "exclusivity." ' Absent words of exclusivity, a forum selection clause will be
deemed permissive." Michaluk v. Credorax (USA), Inc., 164 So. 3d 719, 722 (Fla. 3d
DCA 2015) (citation omitted) (quoting Espresso Disposition Corp. 1 v. Santana Sales &
Mktg. Grp., 105 So. 3d 592, 595 (Fla. 3d DCA 2013)). The provision at issue here
states that Delaware is the forum of choice "[u]nless the Corporation consents in writing
to the selection of an alternative forum." This qualifying language refutes the Officers
and Directors' claim that the plain language of the provision designates Delaware as the
exclusive forum and renders the provision permissive rather than mandatory. And
"[p]ermissive clauses constitute nothing more than a consent to jurisdiction and venue in
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the named forum and do not exclude jurisdiction or venue in any other forum." Id.
(quoting Quinones v. Swiss Bank Corp. (Overseas), S.A., 509 So. 2d 273, 274-75 (Fla.
1987)).
Finally, we note that for purposes of the instant lawsuit, as the assignee,
Luzinski stands in the shoes of CareSync, the assignor. See Akin Bay Co. v. Von
Kahle, 180 So. 3d 1180, 1182 (Fla. 3d DCA 2015) ("The assignee is . . . charged with
the obligation to '[c]ollect and reduce to money the assets of the estate, whether by suit
in any court of competent jurisdiction, or by public or private sale . . . .' § 727.108(1).
The assignee stands in the shoes of the assignor for this purpose." (alteration in
original) (emphasis added) (footnote omitted)). Thus, in bringing suit against the
Officers and Directors for breach of fiduciary duty, Luzinski assumed all the rights
CareSync would have had as the plaintiff in that suit—including the right to consent to a
forum other than Delaware as a litigation strategy.
The question then becomes whether the mere act of filing the written
complaint alleging venue is proper in Hillsborough County satisfies the requirement of
the provision that consent "to the selection of an alternative forum" be in writing. We
conclude that by filing a written complaint in Hillsborough County alleging venue is
proper in Hillsborough County, Luzinski has complied with the dictates of the provision.
Accordingly, we affirm.
Affirmed.
LaROSE and SMITH, JJ., Concur.
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