Dailey v. Walden

648 P.2d 258, 7 Kan. App. 2d 712, 1982 Kan. App. LEXIS 214
CourtCourt of Appeals of Kansas
DecidedJuly 15, 1982
DocketNo. 53,481
StatusPublished
Cited by2 cases

This text of 648 P.2d 258 (Dailey v. Walden) is published on Counsel Stack Legal Research, covering Court of Appeals of Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dailey v. Walden, 648 P.2d 258, 7 Kan. App. 2d 712, 1982 Kan. App. LEXIS 214 (kanctapp 1982).

Opinion

Innes, J.:

Appellants Alice Walden and CACE Investment, Inc., appeal from the trial court’s decision denying them what they claim to be improperly garnished funds.

The facts which gave rise to this dispute are as follows: The plaintiffs, Robert V. Dailey and Amy K. Dailey, successfully sued the defendant, William H. Walden, Jr., on a promissory note. The judgment for plaintiffs was entered on September 3, 1980. Thereafter, the plaintiffs initiated several garnishments in an effort to satisfy the judgment.

Two of the garnishees were Melvin Herndon and Mary Herndon who were tenants at 6334 Millbrook, Shawnee, Kansas. The record owners of the property were the defendant, William H. Walden, Jr., and the appellant-intervenor Alice R. Walden, who [713]*713had purchased the property on October 1, 1976, and held it as joint tenants with the right of survivorship.

The first order of garnishment initiated by the plaintiffs was served on the garnishees, the Herndons, on March 11, 1981. On March 17,1981, the garnishees filed their answer. As for money or indebtedness due the defendant they answered: “I owe a Lease payment on April 1, 1981.” They did not specify the amount of the payment.

A second order of garnishment was served on the Herndons on April 1, 1981. They answered on April 20, 1981. The answer stated that they were holding the April 1, 1981, lease payment in the amount of $525.00.

The first two garnishments apparently resulted in the plaintiffs collecting $525.00 toward their judgment since the second garnishment would have attached the same funds sought by the first. At any rate, an order of payment was entered on May 13, 1981, by the trial court directing that the garnishees, the Herndons, pay the $525.00 to the clerk of the court and then to the plaintiffs’ attorney. This order evidences that the source of the funds to be paid into court was evidenced by the first garnishment answer filed March 17, 1981, although apparently the funds were being held pursuant to the second answer of the garnishees filed April 20, 1981.

A third and final order of garnishment was served on the Herndons on April 30, 1981. By their answer to that garnishment they stated they owed a lease payment to the defendant on May 1, 1981, in the amount of $525.00.

Attached to the second answer of the garnishees was a letter from the Westgate State Bank, Kansas City, Kansas, which recited that the Waldens had assigned the lease payments to the bank. An assignment was included which was signed only by the defendant. This assignment was dated May 6, 1980.

On May 5, 1981, CACE Investment Company began doing business. On May 6, 1981, CACE purchased 6334 Millbrook from William Walden and Alice Walden. It is not disclosed who the stockholders of CACE might be.

The rent was due to Walden on May 1, 1981, for the month of May. On June 3,1981, Alice Walden, through her attorney, filed a motion in this case requesting return of one-half of all garnished funds from the plaintiffs. Alice Walden admits she was not a party [714]*714to that action and there was no application for intervention pursuant to K.S.A. 60-224. It appears William Walden has never appeared in any garnishment proceeding.

On June 8, 1981, CACE moved for the return of $437.50 of the $525.00 May rental garnished pursuant to the journal entry in the captioned case. CACE was represented by the same attorney as Alice Walden. Again, no application for intervention was filed pursuant to K.S.A. 60-224.

On the 24th day of June, 1981, the court ordered the garnishee to pay the funds held by virtue of their May 1,1981, answer to the clerk of the court, who then was ordered to disburse them to plaintiffs’ attorney.

On the 26th day of June, 1981, the motions of the appellants were overruled. The basis for this decision was that appellant Alice Walden had failed to timely object pursuant to K.S.A. 60-718(c) and because CACE took the realty subject to the garnishment.

The appellants argue that the trial court erred in ruling that: (1) A person or entity not a party in the original suit or a garnishee was bound by the time provisions of K.S.A. 60-718(c); (2) the interests of Alice Walden were subject to garnishment in satisfaction of the judgment debt of her husband; and (3) a third-party purchaser for value, without notice of a garnishment, took subject to a garnishment on real property.

As a preliminary matter, it must be noted that neither appellant was a party to the lawsuit when the motions were filed and therefore, technically, had no authority to file motions in the case. However, given the liberal construction given to the Code of Civil Procedure, K.S.A. 60-102, the motions for return of garnished funds could also be treated as applications to intervene which the trial court implicitly granted by ruling on the merits of the motion. Cf., Gilley v. Farmer, 207 Kan. 536, 539-40, 485 P.2d 1284 (1971) (court allowed motion for summary judgment in garnishment case; held K.S.A. 60-102 applied to garnishment); Vernon’s Kansas C. Civ. Proc. § 60-102 (1963), Authors’ Comments.

Appellees contend that the intervention is not permissible because the Kansas statutes on garnishment are silent on the propriety of intervention. Kansas has no case law in this subject; intervention in a garnishment action in Kansas has occurred [715]*715although neither party raised the issue. Purma v. Stark, 224 Kan. 642, 585 P.2d 991 (1978). The State of Washington did face the question, however, and stated:

“NACM contends that it had a right to intervene in the garnishment proceedings under CR 24(a)(2), which provides:

‘Intervention of Right. Upon timely application anyone shall be permitted to intervene in an action: ... (2) when the applicant claims an interest relating to the property or transaction which is the subject of the action and he is so situated that the disposition of the action may as a practical matter impair or impede his ability to protect that interest, unless the applicant’s interest is adequately represented by existing parties.

In resolving this contention, we initially note that since there is a statutory void in the garnishment statutes as to intervention, the civil rules control except where inconsistent. Snyder v. Cox, 1 Wn. App. 457, 462 P.2d 573 (1969).” Zesbaugh, Inc. v. General Steel, 26 Wash. App. 929, 930, 614 P.2d 699 (1980).

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Bluebook (online)
648 P.2d 258, 7 Kan. App. 2d 712, 1982 Kan. App. LEXIS 214, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dailey-v-walden-kanctapp-1982.