Navy Federal Credit Union v. Nicholas Financial, Inc. and Yvette N. Crawford

Summary

The Florida Fifth District Court of Appeal reversed a final judgment in garnishment ordering Navy Federal Credit Union to release funds held in an account belonging to the judgment debtor. The court held that the garnishee's unrebutted assertion that the account was located in Virginia established a lack of subject matter jurisdiction over the property, requiring reversal and discharge of the writ of garnishment.

Holdings

1. Because Navy Federal's amended answer alleged that Crawford's accounts were located outside Florida and Nicholas Financial did not reply, those allegations were deemed true. Florida courts lack jurisdiction over property located outside Florida; therefore, the trial court lacked subject matter jurisdiction to enter the final judgment of garnishment.

Questions Presented

1. Whether the trial court had subject matter jurisdiction over the garnished property when Navy Federal's amended answer alleged that Crawford's accounts were located outside Florida.
2. Whether the trial court could enter a final judgment of garnishment without resolving the jurisdictional issue raised in the amended answer.

Disposition

reversed