Chapman v. Chapman

72 Misc. 2d 436, 339 N.Y.S.2d 404
CourtNew York City Family Court
DecidedDecember 14, 1972
StatusPublished

This text of 72 Misc. 2d 436 (Chapman v. Chapman) is published on Counsel Stack Legal Research, covering New York City Family Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chapman v. Chapman, 72 Misc. 2d 436, 339 N.Y.S.2d 404 (N.Y. Super. Ct. 1972).

Opinion

Stanley Gartenstein, J.

Intricate proceedings in this matter which have been reviewed through the Court of Appeals [437]*437return for what is in effect a second attempt at the same relief vacated by the higher courts.

background

The within custody and support proceeding brought by the wife as petitioner in the Supreme Court, New York County, has been transferred to this court. Although petitioner and respondent were married in New York, they lived together in Venezuela most of their marriage until such time as petitioner left there to come to New York. At the present time, because of events irrelevant here, petitioner has de facto custody of one of the four children of the marriage while respondent and the other three children continue to reside in Venezuela. Respondent, an attorney admitted in this State, is currently associated with the firm of Baker and McKenzie, a Chicago based law firm with offices in this State whose business is conducted here by members thereof admitted in New York. (Hereinafter referred to as garnishee-third party.) Respondent represents this firm in Venezuela. The extent of his interest therein is in dispute. At the time of the first order of sequestration (1971 order) to be described hereinafter, he was a partner; at this time it is claimed he draws salary and is an employee thereof.

Upon the original transfer of proceedings to this court from the Supreme Court, an order of support was entered on November 11,1971 which was then implemented by an order of sequestration entered on November 15, 1971 (per Hon. Millard L. Midonick). At no time did respondent appear generally in any proceeding and he continues to this day to maintain unquestioned domicile in Venezuela. On appeal, the Appellate Division, First Department, reversed (Justices Kupferman and Capozzoli dissenting, 39 A D 2d 108) and vacated both orders. On appeal to the Court of Appeals (30 N Y 2d 941) the order of the Appellate Division was modified to the extent of reinstating the petition for custody of the one child now in New York and except as modified, affirmed.

The Court of Appeals further held that since the underlying proceeding was not one to alter or affect the marital status of the parties, thus falling under CPLR 103, this court’s jurisdiction to order maintenance and support would depend on a seizure of the nonresident defendant’s property prior (emphasis by the Court of Appeals) to the commencement of the action; and in the absence of prior seizure, the proceeding must fail. (Citing Geary v. Geary, 272 N. Y. 390; Matthews v. Matthews, 247 N. Y. 32.)

[438]*438Petitioner now returns to this court and in an effort to establish jursidiction by sequestration and seizure, has had a .second order of sequestration signed ex parte on October 19, 1972 (per Hon. Louis A., Pagnucco). This second sequestration order (1972 order) differs in one material respect from the first in that now it includes within its listing of sequesterable property the word salary” (lacking in the first .order) as well as language aimed at reaching any proprietary of partnership interest in the garnishee-third party, which respondent may have, this latter provision having been, included in both, sequestration orders. The 1972 order has not been honored. No petition has yet been filed in these new proceedings.

Petitioner now moves for an order directing the garnishee-third party to pay to the sequestrator “ all salary and amount representing the interest of -[Maurice Chapman] in the firm of Baker and McKenzie ” and for an order directing the examination of the garnishee-third party to ascertain the exact extent of respondent’s share therein. The garnishee-third party cross-moves to vacate the 1972 .sequestration order whose validity is now in issue.

The cross motion will be disposed of first, because - if denied, the denial thereof would appear to portend the court’s decision on the motion in chief.

' SEQUESTRATION AND ATTACHMENT

It is here relevant to point out that the sepárate bodies of law applying to sequestration and attachment respectively have been held-to apply to both, thus rendering, at least in judicial reasoning, both remedies to be synonymous (Matthews v. Matthews, supra).

EXAMINATION AS TO CONTESTED ISSUES ON NATURE OF SEQUESTERED PROPERTY

The garnishee-third party argues that respondent’s sole interest in its firm is as a salaried employee, and submits that salary is not sequesterable (citing Patterson v. Patterson, 251 App. Div. 272). As a corollary thereto, it opposes examination on the grounds that assuming arguendo that respondent’s interest is indeed that of a partner, thereby not insulated by the apparent protection of Patterson, which applies only to salary, that fact would have to be established in a plenary lawsuit in a court of appropriate jurisdiction. It cites in .support of this proposition, Rosenberg v. Rosenberg (259 N. Y. 338), holding that any contested issue of fact as to debtor’s interest in seques[439]*439tered property relegates the sequestrator to a plenary action at law.

While it is true that Rosenberg is .still good law today, having been affirmed as recently as Mendelsohn v. Mendelsohn (31 A D 2d 742 [1st Dept., 1969]), what stands out about this entire line of authority is the fact that those disputes therein which mandated separate plenary actions at law were all of a nature which, if established, would have effectively defeated title itself as opposed to this matter before us in which it is the extent of respondent’s title which is the only issue in dispute. There is no claim to title of the disputed funds in any other person other than respondent. Nor is there any claim that circumstances exist, other than the claim that these funds constitute salary ” exempt from sequestration, by virtue of which these funds, whatever they be called, would not be payable to respondent. Where it is the extent of a respondent’s interest which is in dispute, disclosure is specifically sanctioned by statute (CPLB 6220) and has been allowed. In Gerard v. Gerard (56 Misc 2d 623), the court (pér Hon. Wilfred A. Waltemade) citing Barton v. Barton (258 App. Div. 44), which considered the predecessor statute (Civ. Prac. Act, § 919) held that the disclosure provisions pertaining to attachment in the CPLB apply to sequestration, and allowed examination as to the extent of a husband’s interest in sequestered property.

Thus, examination would be mandated if the court finds that the funds in question, be they “ salary ” as claimed, or a partnership interest, are subject to sequestration.

SALARY AS SEQUESTERABLE PROPERTY

Close scrutiny would therefore be in order on the question of whether or not salary is sequesterable. The leading ease dealing specifically with this proposition is Patterson v. Patterson (supra) citing Valentine v. Williams (159 N. Y. S. 815, affd. 179 App. Div. 884, affd. 223 N. Y. 574; Rolt-Wheeler v. Rolt-Wheeler (175 App. Div. 852) which specifically holds in the negative. However, subsequent thereto the Court of Appeals in Morris Plan Ind. Bank v. Gunning (295 N. Y. 324) held salary reachable by creditors because of then recent statutory enactments to that effect (there dealing with a 10% limit in wage executions).

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Related

Sniadach v. Family Finance Corp. of Bay View
395 U.S. 337 (Supreme Court, 1969)
Fuentes v. Shevin
407 U.S. 67 (Supreme Court, 1972)
Valentine v. . Jno. Williams, Incorporated
119 N.E. 1083 (New York Court of Appeals, 1918)
Morris Plan Ind. Bank of N.Y. v. Gunning
67 N.E.2d 510 (New York Court of Appeals, 1946)
Geary v. Geary
6 N.E.2d 67 (New York Court of Appeals, 1936)
Rosenberg v. Rosenberg
182 N.E. 8 (New York Court of Appeals, 1932)
Matthews v. Matthews
159 N.E. 713 (New York Court of Appeals, 1928)
Rolt-Wheeler v. Rolt-Wheeler
175 A.D. 852 (Appellate Division of the Supreme Court of New York, 1916)
Valentine v. Jno. Williams, Inc.
179 A.D. 884 (Appellate Division of the Supreme Court of New York, 1917)
Weigold v. Weigold
236 A.D. 126 (Appellate Division of the Supreme Court of New York, 1932)
Ferguson v. Ferguson
247 A.D. 24 (Appellate Division of the Supreme Court of New York, 1936)
Patterson v. Patterson
251 A.D. 272 (Appellate Division of the Supreme Court of New York, 1937)
Barton v. Barton
258 A.D. 44 (Appellate Division of the Supreme Court of New York, 1939)
Neidorf v. Neidorf
43 Misc. 2d 710 (New York Supreme Court, 1964)
Gerard v. Gerard
56 Misc. 2d 623 (New York Supreme Court, 1968)

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Bluebook (online)
72 Misc. 2d 436, 339 N.Y.S.2d 404, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chapman-v-chapman-nycfamct-1972.