Bethenny, who resides in Rhode Island, breached a contract entered into in Florida with Geraldo. Geraldo successfully obtains a judgment against Bethenny for $150,000 in a Florida state court. Bethenny lives in a nice apartment in Rhode Island, and her only substantial asset is a vacation beach house in North Carolina. Which of the following is true regarding Geraldo's ability to obtain funds from a sale of the beach house?

A) Geraldo is only entitled to obtain funds from property located in Florida, the location of the lawsuit, and cannot benefit from the property in North Carolina.
B) Geraldo is only entitled to obtain funds from property located in Florida, the location of the lawsuit, or from Rhode Island, Bethenny's domicile, and cannot benefit from the property in North Carolina.
C) Geraldo will be able to obtain his judgment from the sale of the beach house in North Carolina through in rem jurisdiction, and he is entitled to keep any funds obtained in excess of amounts owed.
D) Geraldo will be able to obtain his judgment from the sale of the beach house in North Carolina through in rem jurisdiction, but he must return to Bethenny any funds obtained in excess of amounts owed.
E) Under federal law, Geraldo will only be able to obtain his judgment from the sale of the beach house through in rem jurisdiction if after two years Bethenny has failed to satisfy the judgment, and any sums received in excess of amounts owed to Geraldo go the Federal Housing Administration.

Question

Timika Rieves · Accepted Answer

Final Answer : D, Explanation :  Geraldo can enforce the judgment against Bethenny's property in North Carolina through in rem jurisdiction, which allows a court to exercise authority over property located within its jurisdiction. If the property is sold to satisfy the judgment, any excess funds after paying off the judgment and associated costs must be returned to Bethenny, the property owner. This principle ensures that the creditor receives the amount due under the judgment but does not unjustly enrich themselves at the debtor's expense.

Definitions

Learning Objectives

Learning Objectives

Related questions