July 25, 2019

Contact:Eric W. Boyer, Esq.
Managing Partner
305.670.1101 Ext. 1023


Ownership of Funds Litigation

Reginald J. Clyne

Reginald J. Clyne

Michelle D. Cofiño

Michelle D. Cofiño

BROWARD COUNTY, Fla. ― Quintairos, Prieto, Wood & Boyer, P.A., Miami office partners Michelle D. Cofiño and Reginald J. Clyne represented Dennis Stoutenburgh an officer of ILD Corporation (“ILD”) and got a dismissal with prejudice on a billing collection claim and outstanding accounts receivable plaintiff claimed belonged to him. The funds, reserved under a controlled ILD account, were pending final distribution which ILD would draw their fee at distribution but ILD experienced financial issues with its lender – Bank of America (“BOA”).  Plaintiff maintained BOA exercised control over ILD’s bank accounts, including the Reserve Account and that any money from ILD held in the Reserve Account is plaintiff’s property.  ILD filed for bankruptcy protection and BOA received approximately one-million dollars ($1,000,000.00) from the Reserve Account.
On July 5, 2018 the U.S. Bankruptcy Court Middle District of Florida entered an Order Approving Debtors’ (ILD) Modified Amended Joint Disclosure Statement and Confirmation of Debtors’ Modified Amended Plan of Reorganization (“July 5 Order”) outlining the schedule of liabilities listing plaintiffs as creditors; in addition, the Order reflects that plaintiff filed a proof of claim.
Plaintiff filed a complaint against defendants alleging 10 causes of actions among them, civil theft, conversion, aiding and abetting, intentional interference with contractual and economic relations, fraudulent misrepresentation, unjust enrichment and accounting against defendants BOA, and ILD Officers including Dennis Stoutenburgh.
The defense asserted that ILD was always the owner of the Customer Funds; further, the July 5 Order concluded that the Customer Funds and the Reserve Account were property of the bankruptcy estate and therefore the trial court lacked jurisdiction to hear any claims asserted against the defendants. The defense maintained that plaintiffs – as creditors in the bankruptcy proceeding – were bound by the July 5 Order regardless of their support or opposition to it.
Motion to Dismiss with Prejudice was Ordered and Granted to all collective defendants.

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About QPWB
Michelle D. Cofiño, a partner in the Miami office, practices in state and federal courts on a wide range of complex litigation matters.  Her practices includes business entity formation, corporate contracts, and IRS tax controversies.  She represents clients in matters involving wills, trusts and estate planning, asset protection, wealth preservation, probate and guardianship administration and litigation, and elder law. Ms. Cofiño’s practice also encompasses commercial disputes, construction defect claims, mechanic’s liens, professional liability, general real estate matters, insurance defense, and suspected fraud claims. She is recognized in Super Lawyers® Florida list of “Rising Stars” as a top rated attorney in general litigation. She received her law degree from St. Thomas University School of Law in 2006 and is a member of the Florida Bar. Ms. Cofiño is fluent in Spanish.
Reginald J. Clyne, a partner in the Miami office and Chair of the Employment Practice Group, practices in state and federal courts focusing on commercial litigation. His practice is emphasized in the areas of automobile negligence, construction litigation, contract disputes, Dram Shop Act, Title VII, Section 1983, whistleblower acts, non-compete violations, product liability, resort and tour accident, and toxic tort litigation.  He serves as an arbitrator for the American Arbitration Association on the Employment and Commercial Law Panel.  Mr. Clyne received the AV® Preeminent™ designation rating from Martindale Hubbell Law Directory and is included in the annual listings of Top Lawyers in South Florida, Top Lawyers in Florida, and Super Lawyers®.  He received his law degree from Duke University School of Law and a Master of Public Policy from the Sanford School of Public Policy at Duke University in 1986. He is admitted to practice in Florida.  Mr. Clyne has lived in Africa, Brazil, Honduras and Nicaragua; he is fluent in Spanish and has a knowledge of Portuguese.
Quintairos, Prieto, Wood & Boyer, P.A., is the largest minority and women owned law firm in the nation with more than 400 lawyers serving clients from 23 offices in the United States and abroad across a spectrum of industries in over 40 areas of practice. Our lawyers provide representation in litigation, business, real estate and governmental law.

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