D., L. & W. Coal Co. v. Kenlon

164 Misc. 32, 297 N.Y.S. 126, 1937 N.Y. Misc. LEXIS 1357
CourtCity of New York Municipal Court
DecidedFebruary 24, 1937
StatusPublished
Cited by3 cases

This text of 164 Misc. 32 (D., L. & W. Coal Co. v. Kenlon) is published on Counsel Stack Legal Research, covering City of New York Municipal Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
D., L. & W. Coal Co. v. Kenlon, 164 Misc. 32, 297 N.Y.S. 126, 1937 N.Y. Misc. LEXIS 1357 (N.Y. Super. Ct. 1937).

Opinion

Madigan, J.

These are two applications under section 794 of the Civil Practice Act (added by Laws of 1935, chap. 630).

The third-party subpoena referred to on this motion was served November 29, 1935. On December 7, 1935, the judgment debtor notified the third party that “ any moneys due ” to the judgment debtor have been assigned to the father of the judgment debtor. The father of the judgment debtor resides in the State of New .Jersey.

[33]*33This application was first. noticed for December 14, 1936, on which date the judgment debtor and the third party appeared by' counsel in opposition to the making of an order pursuant to section 794 of the Civil Practice Act.

Thereupon the court called for evidence of the assignment asserted by the judgment debtor, the court at the same time requiring that the alleged assignee receive twenty days’ notice of the applications by registered mail directed to him at his residence in the State of New Jersey.

To that end there issued from this court a further order to show cause returnable January 15, 1937, and a copy of it was mailed to and received by the alleged assignee at his residence in the State of New Jersey. The receipt obtained by the post office department is made a part of the papers on each of these motions.

On the return day, January 15, 1937, the alleged assignee did not appear. The judgment debtor and the third party again appeared by counsel and opposed the applications.

The amendment of 1935, providing for the mandatory order referred to in section 794 of the Civil Practice Act, was much needed. That it is most useful is shown by the great number of applications being made and granted pursuant to section 794 of the Civil Practice Act. That it may not come into disrepute, the courts have been alert to make no order which might result in a third party having to pay his debt twice. On the other hand, the purpose of the amendment is not to be defeated by the wily procedure of averring a prior assignment to a non-resident assignee, an assignment as to the making of which there can be furnished no evidence such as to clearly indicate verity. The test to be applied is whether sufficient evidentiary facts are shown to fairly support the averment that assignment was in fact made. If an issue is plausibly indicated, that issue is not to be tried out on an application under section 794 of the Civil Practice Act.

In this instance, though given an opportunity to furnish proof of the assignment, the debtor and the alleged assignee failed to do so. The debtor refers to an alleged conversation with his father: “ I merely stated in June or July, 1935, that to secure an $11,000 indebtedness I was assigning all salaries that were to come due to me from ” the third party. The alleged assignee says nothing. For the third party, it is averred that on November 29, 1935, the judgment debtor had an alleged claim against the third party in an amount exceeding $418 which the judgment debtor claimed to be due to him from the third party; that at said time and at all times until May 26,1936, the third party asserted a claim against the judgment debtor “ for a sum in excess of the amount of [34]*34any and all claims of the judgment debtor ” against the third party; ' that on May 26,1936, “ these cross-claims were settled and adjusted by the third party agreeing to pay to the alleged assignee $2,750;” that of this amount $1,551.58 was paid on May 26, 1936, and that the balance of $1,198.42 was retained by the third party subject to “the direction of any court of competent jurisdiction, or $418 thereof pursuant of the joint direction” of the alleged assignee and the judgment creditor. It is proved on this application that the $1,551.58 was paid by check of the third party to the order of the judgment debtor and that the check was indorsed by the judgment debtor, but never indorsed by the alleged assignee. The conversation between the debtor and his father, the alleged assignee, does not amount to an executed, accepted assignment. The court could not grant an order pursuant to section 794 of the Civil Practice Act, if there were any evidence fairly indicating the assignment asserted by the judgment debtor; but what has been furnished is set forth above, and it fails to fairly indicate that there was any such assignment. There is no evidence which plausibly supports the claim of assignment.

The alleged assignee has been duly notified by registered mail, pursuant to the direction of the court, of this application. He has actually received the notice directed by the court. He has not responded. Jurisdiction is not the question here. The court has jurisdiction of the res, the obligation of the third party, as that obligation stood when the third-party subpoena was served. Such obligation is affected because a statute renders it subject to the third party process. The alleged assignee has had opportunity, reasonable under all the circumstances, to be heard. He has had notice reasonable to afford such opportunity. There has been notice * * * sufficient in substance to constitute due process of law ” (Civ. Prac. Act, § 794). All that is necessary to sustain jurisdiction is found here. The court is, therefore, obliged to overrule the objections built upon the rights of the alleged assignee, objections to the effect that the court is without jurisdiction to make an order pursuant to section 794 of the Civil Practice Act.

It is contended that section 684 of the Civil Practice Act is, in effect, an exemption statute. There are cases in which reference has been made to the lien of an execution and in which it is pointed out that under an execution there can be no levy against prospective earnings other than a levy authorized by the statutory provisions now found in section 684. (Hayward v. Hayward, 178 App. Div. 92; Valentine v. Williams, Inc., 159 N. Y. Supp. 815; affd., 179 App. Div. 884; 223 N. Y. 574; Rolt-Wheeler v. Rolt-Wheeler, 175 App. Div. 852.)

[35]*35Section 684 of the Civil Practice Act is derived indirectly from section 1391 of the Code of Civil Procedure. In 1903 (Laws of 1903, chap. 461) provisions for the execution against earnings to accrue were added to section 1391 of the Code of Civil Procedure. Those statutory additions to the remedies of judgment creditors obviously did not abridge or take away any remedy judgment creditors then had. They were not intended to create any “ exemption for the benefit of judgment debtors. Prior to the adoption of the garnishee execution ” by said chapter 461 of the Laws of 1903, no execution against prospective earnings was provided for in this State. Moreover, in 1903 and until September 1, 1935, supplementary proceedings were supplementary to execution and did not affect “ after-acquired property ” to any extent whatever. Chapter 461 of the Laws of 1903 authorized a new form of execution. That statute could not have been intended to create an exemption as to future earnings; for future earnings could not be reached by execution prior to such enactment of 1903. The purpose was to enlarge, not to restrict, the remedies of judgment creditors.

An exemption statute to which reference should be made is the statute known as section 792 of the Civil Practice Act (added by Laws of 1935, chap. 630). It exempts, to the extent stated therein, past earnings.

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Cite This Page — Counsel Stack

Bluebook (online)
164 Misc. 32, 297 N.Y.S. 126, 1937 N.Y. Misc. LEXIS 1357, Counsel Stack Legal Research, https://law.counselstack.com/opinion/d-l-w-coal-co-v-kenlon-nynyccityct-1937.