Arrowhead Acceptance Corporation v. Missouri Department of Social Services

450 S.W.3d 466, 2014 Mo. App. LEXIS 1098, 2014 WL 4851280
CourtMissouri Court of Appeals
DecidedSeptember 30, 2014
DocketWD77203
StatusPublished

This text of 450 S.W.3d 466 (Arrowhead Acceptance Corporation v. Missouri Department of Social Services) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Arrowhead Acceptance Corporation v. Missouri Department of Social Services, 450 S.W.3d 466, 2014 Mo. App. LEXIS 1098, 2014 WL 4851280 (Mo. Ct. App. 2014).

Opinion

*467 JOSEPH M. ELLIS, Judge.

The Department of Social Services (“the Department”) appeals from a judgment entered by the Circuit Court of Jackson County ordering the Department to pay garnished funds in the amount of $5,769.92 into the court registry. The judgment further orders that such funds be paid to Respondent Arrowhead Acceptance Corporation. For the following reasons, the judgment is reversed, and the case is remanded for further proceedings consistent with this opinion.

In 2009, Respondent filed a petition against Lavinia Bryer (“Defendant”) in the Circuit Court of Jackson County. The trial court subsequently entered a default judgment in favor of Respondent for $4,014.02 plus costs and interest. In order to satisfy the judgment, Respondent sought to garnish Defendant’s wages. Thus, Respondent applied for and obtained a writ of garnishment against Defendant’s employer, Rean Johnson d/b/a Granny’s Pray and Play Child Care Center.

After Johnson failed to garnish Defendant’s wages, Respondent sought a judgment against Johnson. On July 22, 2010, the trial court entered a default judgment against Johnson for $4,105.02 plus court costs.

In 2013, Respondent sought to satisfy the judgment against Johnson by applying for a writ of garnishment against the Department. At the time, the Department had entered into an agreement with Johnson d/b/a Granny’s Pray and Play Child Care Center in which the Department agreed to pay Johnson for providing child care services to children eligible for state assistance. The garnishment application/order indicates that Respondent requested garnishment of Johnson’s “wages” and that the Department should attach all “payments” due to Johnson.

On July 15, 2013, the Department filed a motion to quash the writ of garnishment. In its motion, the Department asserted that the writ must be quashed because garnishment against the State is barred by sovereign immunity. Respondent opposed the motion, averring that the Department waived its sovereign immunity to garnishment pursuant to § 525.310. 1

On September 3, 2013, the trial court entered an order overruling the Department’s motion to quash garnishment. In doing so, the trial court found that “the interests of justice would best be served by denying the motion” because Johnson “is in essence an employee of the state whose salary, earnings, fees and wages are subject to garnishment pursuant to Mo. Rev.Stat. § 525.310.”

In November 2013, the Department answered the garnishee interrogatories attached to the writ of garnishment. In doing so, the Department maintained that it was immune from garnishment and that Johnson had never been an employee of the Department. Respondent then filed a motion to compel payment of the garnished funds into the court registry. The Department did not oppose the court ordering the funds be paid into the court registry; however, it requested that the court stay distribution of those funds to Respondent until the matter could be reviewed by this Court.

On December 5, 2013, the trial court sustained Respondent’s motion to compel payment of the funds into the court registry and ordered those funds be paid to Respondent. The Department filed a motion to reconsider in which it contended that, pursuant to Rule 90.10(b) and § 525.190, it was entitled to a trial on the *468 matter of whether Johnson is an employee of the Department. Alternatively, the Department requested that the trial court denote its December 5, 2013 order as a judgment.

On December 13, 2013, the trial court denied the Department’s request for a hearing; however, the trial court did order that its December 5, 2013 order be denoted as a judgment. It further noted that, pursuant to said judgment, the Department “shall pay into the Court Registry the sum of $5,769.92 as funds due on the garnishment and that such funds are to be paid to [Respondent].” 2

The Department now raises four points on appeal from the trial court’s judgment. Our review of this case is governed by the standard enunciated in Murphy v. Carron, 536 S.W.2d 30, 32 (Mo. banc 1976). Ohio v. Mo. State Treasurer, 130 S.W.3d 742, 743 (Mo.App.E.D.2004). Thus, “[w]e will uphold the judgment or decree of the trial court unless there is no substantial evidence to support it, it is against the weight of the evidence, it erroneously declares the law, or it erroneously applies the law.” Id. at 744.

In its second and third points, the Department challenges the trial court’s finding that Johnson is “in essence” an employee of the State. Our review of the record establishes that there is insufficient evidence to support the trial court’s finding.

First, “the garnishor has the burden of proving facts essential to the garnishee’s liability.” M.A.B. v. Nicely, 911 S.W.2d 313, 315 (Mo.App.W.D.1995). Respondent contends that the Department’s liability is established by § 525.310 in that Johnson is an employee of the Department and, therefore, her wages are subject to garnishment. Thus, Respondent bore the burden of proving that Johnson is an employee of the State.

Respondent, however, presented no evidence to the trial court establishing that Johnson is a state employee. At the hearing on the Department’s motion to quash, Respondent simply argued that Johnson is an employee of the State because she entered into a contract with the Department to provide child care services. Respondent offered no evidence in support of its argument at the hearing; nor did it attach any exhibits establishing Johnson’s status as a state employee to its suggestions in opposition to the Department’s motion to quash. In fact, Respondent never introduced into evidence the child care provider agreement between Johnson and the Department. Thus, the very agreement upon which Respondent relied to establish that Johnson is a state employee was not before the trial court prior to the court’s finding that Johnson is “in essence” a state employee.

It was not until the Department attached the agreement to one of its motions to reconsider that the child care provider agreement was before the trial court. The agreement constitutes the'only evidence in the record as to the relationship between Johnson and the Department. Nowhere in the agreement, however, is Johnson deemed an employee of the Department. Rather, the agreement states that “[t]his document is an offer to contract with the State of Missouri as a Child Care Provider to offer services to authorized clients of the Department of Social Services[.]” *469 Therefore, the agreement, in and of itself, is insufficient to establish Johnson as an employee of the State.

Accordingly, Respondent presented no evidence to the trial court regarding Johnson’s status as a state employee. And aside from the child care provider agreement, the record is devoid of any evidence to support the trial court’s finding that Johnson is “in essence” a state employee.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

State v. Missouri State Treasurer
130 S.W.3d 742 (Missouri Court of Appeals, 2004)
M.A.B. v. Nicely
911 S.W.2d 313 (Missouri Court of Appeals, 1995)
Murphy v. Carron
536 S.W.2d 30 (Supreme Court of Missouri, 1976)
Edgar v. Ruma
823 S.W.2d 59 (Missouri Court of Appeals, 1991)
Adelman-Adler v. Keathley
934 S.W.2d 611 (Missouri Court of Appeals, 1996)
Derleth v. Derleth
432 S.W.3d 771 (Missouri Court of Appeals, 2014)

Cite This Page — Counsel Stack

Bluebook (online)
450 S.W.3d 466, 2014 Mo. App. LEXIS 1098, 2014 WL 4851280, Counsel Stack Legal Research, https://law.counselstack.com/opinion/arrowhead-acceptance-corporation-v-missouri-department-of-social-services-moctapp-2014.