A California resident's reported love for exercise helped dash his chance of escaping a nearly $2.2 million judgment against him, plaintiffs lawyer Michael Pike said.
The result was a landmark ruling against Florida's strong constitutional protections that protect homesteads against forced sale and typically make it difficult to foreclose liens on these properties.
Retired dentist Michael Motamed faced the multimillion-dollar judgment after a personal injury suit by Regina Marie Ramos, who claimed she was walking in a California suburb when Motamed hit her with his car, requiring her to have seven surgeries.
But in January 2015, right before the start of trial, Ramos' attorneys claim Motamed sought to shield his assets by purchasing a $1.6 million condominium on Ocean Drive in Palm Beach and took steps to declare the property his homestead but then returned immediately to California. They claimed he obtained a Florida driver's license, library card and voter's registration three pieces of identification required to prove residency when seeking homestead tax exemption but then reinstated his California ID.
"At the time of the deposition, Dr. Motamed took the staunch position he lived in Florida," Pike said. "At the time, I don't believe he knew we had the gym records" showing he worked out for 300 days in California during 2015.
Motamed's lawyer, Jupiter attorney Michael Knecht, confirmed Ramos' California attorney, Geoffrey Hickey, subpoenaed Motamed's records from Equinox gym.
That move bolstered Ramos' Florida case by showing Motamed checked in to exercise classes for most of the year in California, despite receiving the homestead protection reserved for Floridians.
"Big picture is this: Debtors cannot shelter money here in the state of Florida under the guise of homestead exemption," said Pike, who teamed with Talina Bidwell to bring Ramos' Florida claim. "You can't screw the property appraiser with lies."
On June 20, Acting Palm Beach Circuit Judge Edward Garrison signed an order eviscerating Motamed's homestead exemption, clearing the way for Ramos' lien foreclosure of the Palm Beach property.
"This is a great case because Florida is a debtor's haven. A lot of people who have debt, and creditors are after them, move here and purchase a homestead. They live here permanently because you can protect your homestead against forced sale if you make it your primary residence," Pike said. "The distinct difference in this case is Dr. Motamed never made this place his primary and sole residence."