Etheredge v. Bradley

502 P.2d 146, 1972 Alas. LEXIS 247
CourtAlaska Supreme Court
DecidedOctober 27, 1972
Docket1514, 1525
StatusPublished
Cited by43 cases

This text of 502 P.2d 146 (Etheredge v. Bradley) is published on Counsel Stack Legal Research, covering Alaska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Etheredge v. Bradley, 502 P.2d 146, 1972 Alas. LEXIS 247 (Ala. 1972).

Opinions

OPINION

RABINO WITZ, Justice.

The central issue in this appeal is whether the procedural authorization of summary prejudgment attachment of property provided for in Civil Rule 89 violates the due process guarantees of article I, section 7 of the Alaska constitution and the fourteenth amendment of the United States Constitution.

On July 20, 1970, B. J. Bath, Inc., filed suit against appellant Etheredge to recover a debt allegedly owed it. On July 22, Bath secured a writ of attachment from appellee Bradley, Clerk of the District Court for the State of Alaska, Third Judicial District. Bradley issued the writ pursuant to AS 09.40.010 and Civil Rule 89 without providing notice of hearing to Etheredge. Etheredge’s checking account in the amount of $308 was attached at approximately 11:30 a. m., July 23, 1970. Ether-edge did not receive notice of this event until the bank called him about 5 p. m. that day. Before Etheredge received actual notice of the attachment of his checking account funds, he had written several checks which the bank later returned for insufficient funds.

Etheredge moved to quash the writ of attachment on July 28, 1970. His motion was denied, whereupon he filed a separate class action against Bradley seeking declaratory judgment that Civil Rule 89 is unconstitutional and injunctive relief against further operation of the rule. Etheredge held himself out as a representative of the class of “all persons and their property who have been or might be the object of an unnoticed and unheard prejudgment attachment of assets under Rules 88 and 89 of the Alaska Rules of Civil Procedure.”

After he had instituted this class action, Etheredge consented to a judgment on the merits in the suit which Bath had filed against him. Answering Etheredge’s class action complaint, Bradley admitted that the practice of her office was to issue writs of attachment without affording notice or opportunity for hearing to the person whose property is to be seized under the writ. Thereafter, both Etheredge and Bradley moved for summary judgment. The superior court granted summary judgment to Bradley. Etheredge has appealed the denial of his motion for summary judgment. Bradley has cross-appealed from the superior court’s determinations (1) that Etheredge adequately represented his named class, and (2) that the declaratory judgment suit was not mooted by virtue of Etheredge’s entry into a consent judgment in the Bath litigation.

Etheredge argues that the fourteenth amendment of the United States Constitution and article I, section 7 of the Alaska constitution guarantee due process in the taking of a person’s property. He contends that in this context due process requires prior notice and hearing except in extraordinary circumstances, particularly in the case of property which provides the necessity of life to an individual or family. Etheredge further asserts that checking accounts should be considered that sort of “specialized property” which is subject to the most vigilant of protections. While recognizing the balancing of interests involved in defining due process, Etheredge states that the debtor’s interest combines with the state’s related interest to outweigh any interest the creditor can assert for the summary seizure of a debtor’s property without prior notice or hearing.

Bradley in turn argues that attachments historically have been found to satisfy due process demands where, as in Alaska’s pro[149]*149cedures, some hearing is provided before final disposition of the property. In Bradley’s view, Sniadach v. Family Finance Corp., 395 U.S. 337, 89 S.Ct. 1820, 23 L.Ed.2d 349 (1969), is limited to wage garnishment practices and cases which occasion “extreme hardship” to the debtor, both of which factors were stipulated out of the instant case.

Sniadach involved a prejudgment wage garnishment under a Wisconsin statute which allowed issuance of a garnishee summons at the request of a creditor’s attorney, without a prior hearing on the underlying claim. While recognizing that summary interference with property interests may satisfy due process standards in “extraordinary situations,” such as to protect public health or in dealing with insolvent financial institutions, the Supreme Court stated:

Where the taking of one’s property is so obvious, it needs no extended argument to conclude that absent notice and a prior hearing . . . this prejudgment garnishment procedure violates the fundamental principles of due process.1

In Sniadach, no need for special protection for the state or creditor was shown since the defendant was a Wisconsin resident over whom personal jurisdiction was readily available. There the Supreme Court was concerned with the hardship created by a procedure which deprived the debtor of his means of existence and characterized wages as “a specialized type of property presenting distinct problems in our economic system.” 2

The hardship theme was picked up and emphasized again in Goldberg v. Kelly, 397 U.S. 254, 90 S.Ct. 1011, 25 L.Ed.2d 287 (1970). In that case, the Supreme Court held that in order to satisfy due process welfare recipients were entitled to an evi-dentiary hearing prior to termination of benefits. In the context of the need of the welfare recipient-plaintiffs, the Supreme Court said:

The extent to which procedural due process must be afforded the recipient is influenced by the extent to which he may be “condemned to suffer grievous loss,” . . . and depends upon whether the recipient’s interest in avoiding that loss outweighs the governmental interest in summary adjudication. Accordingly, . . . “consideration of what procedures due process may require under any given set of circumstances must begin with a determination of the precise nature of the government function involved as well as of the private interest that has been affected by governmental action.” 3

Since Sniadach v. Family Finance Corp. and Goldberg v. Kelly, there has been some confusion in federal and state courts as to the implications of these decisions. It was not clear whether the Supreme Court was ruling solely on constitutional due process grounds or was acknowledging a “hardship” exception to venerable prejudgment remedies. Another area of confusion was whether the factual context of Sniadach could be taken as describing the full extent of the opinion’s reach, or whether the language “specialized type of property” implied a somewhat larger category of affected property rights.

Of the courts that resisted extension of Sniadach, some have expressly limited Sniadach to wage garnishment proceedings.4 Others have attempted to distinguish the sort of property interest involved from the “specialized type of property”5 [150]*150referred to in Sniadach. Still others have focused on the hardship element and the purpose for which the attachment is used.6

The courts that have used Sniadach as the basis for re-evaluating summary prejudgment remedies by which persons are deprived of their property have recognized that the rationale of Sniadach was grounded in fundamental notions of due process rather than in considerations of hardship.

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Cite This Page — Counsel Stack

Bluebook (online)
502 P.2d 146, 1972 Alas. LEXIS 247, Counsel Stack Legal Research, https://law.counselstack.com/opinion/etheredge-v-bradley-alaska-1972.