Storey Mountain v. Del Amo (In re: Del Amo)
- Summarized by David Treacy , U.S. Bankruptcy Court, Eastern District of Kentucky
- 3 months 2 weeks ago
- Case Type:
- Consumer
- Case Status:
- Affirmed
- Citation:
- 24-13216 (11th Circuit, Nov 10,2025) Published
- Tag(s):
-
- Ruling:
- The U.S. Court of Appeals for the Eleventh Circuit affirmed a bankruptcy court's order finding a bank account held by the chapter 7 debtor and his non-debtor spouse was exempt property. In Florida, creditors can garnish joint tenant accounts but not entireties property. Applying a state statute codifying and expanding common law, the court held that, while the account's signature card stated “[j]oint accounts are owned as joint tenants with right of survivorship[,]” the spouses held the account as tenants by the entirety as they hadn't expressly disclaimed that form of ownership in writing.
- Procedural context:
- Neither the debtor nor the chapter 7 trustee, both named as appellees in this Eleventh Circuit appeal, filed a brief. Given that the amount at issue was $7,270, and that Debtor's total scheduled assets exceeded $4 million, it's possible neither felt participating in this particular appeal would be money well spent. The Eleventh Circuit "sua sponte appointed amicus curiae counsel to defend the district court’s judgment." The circuit court rendered its decision "[a]fter careful review, and with the benefit of oral argument," and noted "[a]micus counsel ably discharged their duties in this appeal." The opinion then traces the development of Florida law on this issue. The opinion first explains the common law as established in Beal Bank, SSB v. Almand and Associates, 780 So. 2d 45 (Fla. 2001) (creating a presumption that bank accounts owned by spouses are held as tenants by the entirety if "the six unities" are found). Next, it discusses the codification of the common law in 2008 (Fla. Stat. § 655.79). Then, it notes that, under Florida law, the common law continues to govern unless a statute explicitly and clearly abrogates the common law principle. Finally, and in the absence of a Florida Supreme Court decision interpreting the Florida statute, the opinion discusses state intermediate appellate court decisions discussing the statute in light of the Beal Bank decision.
- Facts:
- Debtor Carlos Del Amo and his wife opened a joint checking account in 2019. In doing so, they signed a "signature card" naming both as the title owners. Written in small print on the card was this sentence: “Joint accounts are owned as joint tenants with right of survivorship.” In 2022, Debtor filed a chapter 7 petition in the U.S. Bankruptcy Court for the Southern District of Florida. In his amended schedules, he listed the account as an asset--at that time, it contained $7,270--and exempted the account pursuant to 11 U.S.C. § 522(b)(3)(B), "which exempts property the debtor holds 'as a tenant by the entirety or joint tenant to the extent that such interest . . . is exempt from process under applicable nonbankruptcy law.'” Creditor Storey Mountain objected to this exemption claim, arguing Debtor and his wife did not hold the account in a tenancy by the entirety given the language on the signature card. Creditor cited Fla. Stat. § 655.79(1) to support its position, which states: “Any deposit or account made in the name of two persons who are husband and wife shall be considered a tenancy by the entirety unless otherwise specified in writing.” To support the exemption claim, Debtor cited Beal Bank, SSB v. Almand and Associates, 780 So. 2d 45 (Fla. 2001), in which the Florida Supreme Court "held that when a husband and wife share a bank account, they hold it as a 'tenancy by the entireties' unless there is 'an express disclaimer that a tenancy by the entireties was not intended.'” Debtor contended the signature card's plain language did not constitute a disclaimer of a tenancy by the entireties. After a hearing, the bankruptcy court concluded the Florida statute does not clearly explain "what count[s] as 'otherwise specified in writing,'" and relied on the Beal Bank decision to overrule the objection to the exemption because the express language on the signature card did not disclaim tenancy by the entirety status for the account. Creditor appealed to the U.S. District Court for the Southern District of Florida, which affirmed. Creditor then took a further appeal to the Eleventh Circuit.
- Judge(s):
- Jill Pryor, Luck, and Hull
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