Pb Real Estate, Inc. v. Dem Ii Properties

719 A.2d 73 (1998)

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Nature of the Case

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Facts

P obtained a deficiency judgment from a mortgage foreclosure against Botwick, Kurzawa, and DEM II Properties. P applied for a charging order directed to Botwick & Kurzawa LLC, a limited liability company engaged in the practice of law. P wanted to satisfy its judgment from any payments coming due to the LLC as both individual defendants each owned half of the LLC. The application was granted and directed the LLC to pay to P present and future shares of any and all distributions, credits, drawings, or payments due to Ds until the judgment was satisfied in full. The LLC was ordered to furnish P a copy of the LLC agreement and various financial information. P then applied for a turnover order claiming that the LLC had not complied with the charging order. The trial court granted the order, and the LLC appealed. The court rejected the LLC's claim that the payments to Ds were similar to wages paid other employees of the firm. However, the payments to Ds were not shown in the salary column of the LLC business records. Individual tax records confirmed that Ds received no salaries and ruled that the payments were distributions and were subject to the charging order. LLC appealed.