Bank of Italy v. Welsh

182 N.W. 6, 213 Mich. 286, 1921 Mich. LEXIS 558
CourtMichigan Supreme Court
DecidedMarch 30, 1921
DocketDocket No. 58
StatusPublished
Cited by2 cases

This text of 182 N.W. 6 (Bank of Italy v. Welsh) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bank of Italy v. Welsh, 182 N.W. 6, 213 Mich. 286, 1921 Mich. LEXIS 558 (Mich. 1921).

Opinion

Steere, C. J.

Appellant seeks reversal of two orders of the Wayne county circuit court, made on motions argued and submitted together, denying plaintiff’s motion for summary judgment against the above-named garnishee defendants and granting their mo[287]*287tions for an order to quash the writ of garnishment, releasing them from all liability thereunder. The principal action to which the involved garnishment proceedings litigated here are auxiliary was commenced in the circuit court of Wayne county by summons issued January 8, 1920, and made returnable April 6, 1920. This summons was not served, nor returned until May 28, 1920, on which date the sheriff of Wayne county made return of nonservice in the usual form because of inability to find the defendant after diligent search and inquiry. No alias summons was ever issued in the case.

Plaintiff is a foreign corporation, organized under the laws of California. Elbridge G. Rideout, the principal defendant, was also a nonresident of this State. He died in the city of New York on January 28, 1920, proceedings to administer his estate being thereafter taken in the State of New Jersey. His nonresidence when action was begun was known to plaintiff’s counsel who made and filed an affidavit of garnishment January 10, 1920, concluding, “and the affiant further says that the said E. G. Rideout is a nonresident of the State of Michigan,” a provision not required by the general garnishment statute and evidently inserted to bring the proceedings under section 13150 of the Compiled Laws of 1915, relating to the garnishment proceedings where the principal defendant is a nonresident. A declaration in assumpsit was filed on January 9, 1920, with an attached copy of a note for $900 given by Rideout to plaintiff, dated Los Angeles, California, July 10, 1914, upon which $400 was credited, with affidavit of plaintiff’s counsel, dated January 9, 1920, stating that the “annexed account” was a true statement between the parties, the indebtedness of defendant to plaintiff being then $703.50 as near as he could estimate the same, etc. Pursuant to the affidavit therefor, a writ of garnishment was [288]*288issued and filed on January 13, 1920, with a return of service on the above-named garnishee defendants.

On February 28, 1920, they filed disclosure of an indebtedness of $1,962.49 to the principal defendant, and an affidavit of Gaylord N. Bebout, stating that he together with the other garnishee defendants Welsh and Kahn constituted a firm of attorneys in Detroit, and as such had represented the interests of said defendant Rideout in said city; that affiant was informed and believed said Rideout had died in a hospital in the city of New York on January 28, 1920, and no service in this cause had ever been made on him within the State of Michigan during his lifetime.

On March 27,1920, they filed an amended disclosure denying indebtedness, setting out in apparent explanation of the former disclosure, that when served with said writ they were acting as agents and attorneys for the principal defendant, and as such custodians of his funds were privileged from disclosing any facts in relation thereto coming to their knowledge in that capacity and, otherwise than in such capacity, they had no property or money of said defendant in their possession or under their control. No authority is cited to sustain this doubtful feature of their defense. In 2 Wade on Attachments and Garnishments, § 349, it is said with citation of decisions:

“The ease of an attorney who has collected money for the defendant, and has it in possession subject to the latter’s right of action therefor on demand and failure to pay, may be held as garnishee if properly served. But this is for the reason that he occupies the position of debtor to the defendant in attachment.”

Nothing further was done in the case until April 6, 1920, when plaintiff filed and served a demand for examination of the garnishee defendants before a circuit court commissioner on April 9, 1920. Oin that day they did not appear for such examination, of [289]*289which, fact the commissioner made return on April 10, 1920, stating that “said garnishees suffered default.” On the same day plaintiff’s counsel entered their default and served on them notice thereof.

On April 13,1920, Douglas A. Graham, an employee connected with the office of plaintiff’s counsel, filed an “appearance of defendant and notice” as follows:

“Now comes Douglas A. Graham, administrator of the estate of Elbridge G. Rideout, who died after the commencement of the above entitled cause, and in behalf of the estate of the said Elbridge G. Rideout, demand's a trial in the matter set forth in the plaintiff’s declaration.
“Douglas A. Graham,
“837 Dime Bank Bldg.,
“Detroit, Michigan.”

On May 7, 1920, he filed another “appearance of defendant and notice” as follows:

“Now comes Douglas A. Graham, administrator of the estate of Elbridge G. Rideout, duly appointed by the probate court of Wayne county, Michigan, and enters appearance in the said cause, for and in behalf of the said defendant, and shows to the court that the said Elbridge G. Rideout died at the city of New York on the 28th day of January, A. D. 1920.
“Douglas A. Graham,
“Administrator of the estate of Elbridge G. Rideout.”

On May 10, 1920, entry of judgment was filed and journal entry made as follows:

“Entry of Judgment (filed May 10, 1920). At a session of the circuit court held in the county building of Wayne county the 7th day of May, A. D. 1920. Present: The Honorable Adolph F. Marschner, circuit judge.
“Upon reading the declaration in said cause, and upon taking proofs in open court, the said defendant having appeared and pleaded, by his administrator, Douglas A. Graham, it is hereby
[290]*290“Ordered that judgment be entered against the said defendant in the amount of ($703.33) seven hundred and three dollars and thirty-three cents damages, plus twenty-two dollars ($22.00) costs, and that the plaintiff have execution therefor.
“Adolph F. Marschner,
“Circuit Judge.”
“Journal Entry (Filed May 10, 1920). Upon reading the declaration in said cause, and upon taking proofs in open court, the said defendant having appeared and pleaded by his administrator, Douglas A. Graham, it is hereby ordered that judgment be entered against the said defendant in the amount of seven hundred three ($703.33) dollars and thirty-three cents damages, plus twenty-two ($22.00) dollars costs, and that plaintiff have execution therefor.
(Signed at the end of the day’s entries.)
“Adolph F. Marschner,
“Presiding Judge.”

The “said defendant” against whom judgment ran was, as stated in the præcipe, summons, declaration and all other proceedings in the case so far as the printed record discloses, E. G. Rideout, who died unserved with process over three months before the judgment was rendered against him.

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Related

Meehan v. Parker
196 N.W. 435 (Michigan Supreme Court, 1923)
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188 N.W. 354 (Michigan Supreme Court, 1922)

Cite This Page — Counsel Stack

Bluebook (online)
182 N.W. 6, 213 Mich. 286, 1921 Mich. LEXIS 558, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bank-of-italy-v-welsh-mich-1921.