A Miami appellate court on Wednesday reversed a summary judgment against the yacht broker-son of a Don Pan bakery chain co-founder, finding the trial court was too quick to decide an asset transfer was fraudulent.

Miami-Dade Circuit Judge Jennifer Bailey initially ruled Alvaro Gorrin Jr. had fraudulent intent when he transferred his 95 percent stake in Lacross Marina LLC, which owns the Key Largo Harbor Marina, to a family trust months after being held liable for a $19 million debt.

But the Third District Court of Appeal ruled Gorrin's intent was not clear-cut enough to be decided at the summary judgment stage, reversing Bailey's decision to void the transfer and freeze the Lacross company's assets.

“The case involves some rather novel issues concerning limited liability companies and what is permissible under the law to execute on the assets of the limited liability company,” said Gorrin's attorney, Sergio Mendez of the Mendez & Mendez Law Offices in Miami. “The court's decision made it clear that the trial judge had exceeded her authority in granting the relief that she did.”

The underlying litigation spans a decade and has now gone up on appeal four times. Gorrin and his father were sued for allegedly breaching guaranties on a loan made by Ocean Bank to finance two condominium conversion projects.

Poker Run Acquisitions Inc. acquired the loan from the bank and filed the 2008 litigation, securing a $19 million judgment in May 2009. In August of that year, Gorrin transferred his Lacross ownership to a newly created trust that named his mother and brother as trustees and his wife and children as beneficiaries, according to the court record.

When Poker Run sought to void the transfer, Gorrin argued the company was moved to the trust for estate planning purposes.

“This fails to establish innocence of motive because by transferring the asset as a matter of estate planning it shields the asset from collection by creditors,” Bailey wrote in the 2015 summary judgment order. “The timing of this sudden post-judgment impulse at estate planning for a wife and children who were in existence at the time of the initial filing of this action is an indicator of fraudulent intent,”

She also ruled Gorrin's statement that he did not manage the Lacross company was false based on testimony from the owner of the remaining 5 percent stake, who said he managed the company but “could not answer the most basic financial questions regarding the LLC's balance sheet,” according to Bailey.

The appellate panel reversed the trial judge, finding the estate planning and witness credibility issues were both questions for later stages of the litigation.

“On a motion for summary judgment, it is well-established that the trial court may not adjudge the credibility of witnesses or weigh the evidence,” wrote Third DCA Judge Norma Lindsey, with Judges Thomas Logue and Edwin Scales concurring. “If believed by the trier of fact, Gorrin's evidence that the transfer was made for estate planning purposes, pursuant to a promise that he had made to his wife and without the intent to defraud any creditor, could rebut the presumption of fraud.”

The issue was remanded to the trial court.

Mendez, who worked on the case with his son and law partner Daniel Mendez, said the underlying litigation “apparently does not have any end in sight.” (After the appellate court reversed two other summary judgment orders in the case, Bailey held a 2013 bench trial and awarded Poker Run $30 million. That judgment was appealed and affirmed.)

“It's been a trying experience for my client since 2008, and it's taken a toll on the Gorrin family,” Sergio Mendez said. “Hopefully we can move forward from this.”

Poker Run was represented by Jose Loredo and Steven Blickensderfer of Carlton Fields in Miami. Loredo declined to comment.