Greengard v. Fretz

65 N.W. 949, 64 Minn. 10, 1896 Minn. LEXIS 52
Supreme Court of Minnesota·Decided January 28, 1896·No. Nos. 9795-(260)·Published·Cited by 8 cases

Opinions

COLLINS, J.

This action was upon a bond executed to procure the discharge of a co-partnership garnishee, conditioned as provided in G-. S. 1894, § 5342. It was recited in this instrument that plaintiff had commenced an action against the defendant, and had garnished money, property, and effects of the latter in the hands of the garnishee. On the trial it was shown by the plaintiff that the garnishee, at the time of the service of the summons, was indebted to the defendant therein in a sum in excess of the judgment recovered by plaintiff in the original action, unless the claim had previously been lawfully assigned by defendant to one of the sureties on the bond. Against plaintiff’s objection, the court below allowed defendants to introduce evidence tending to show that the day before the garnishment — the bond being executed and filed three days afterwards — the indebtedness in question had been transferred, by written assignment by the principal in the bond, to a surety; and then, upon all of the testimony relative to this'alleged transfer, the court directed a verdict in idefendants’ favor, thus taking from the jury all questions as to the fact or good faith of the assignment.

The first question is whether, under the terms of the bond, the principal or sureties thereon can be allowed to assert that at the time of the garnishment there was nothing due defendant. In view of the language found in the statute which authorizes the release of a garnishee upon the approval and filing of such a bond, and the recital in the bond itself that defendant’s money, property, and effects had been garnished, there can be but one answer to this question.

Section 5342, supra, provides that a defendant may execute a bond, with sureties, to a plaintiff, when money, property,. or effects have been garnished, conditioned that if the latter recover judgment in the action the former will pay the same, or an amount thereon equal to the value of the garnished money, property, or effects. The officer who has approved the bond thereupon makes an order discharging the garnishment, and releasing the money, [12] property, and effects, and the defendant then has full power to receive and collect the same. It would seem a singular construction of this statute if it should he held that a defendant who has no interest whatsoever in money, property, or effects in the hands of a third party who has been warned to answer in garnishee proceedings, has the right to intrude himself and his sureties into a matter of no consequence' to him or them, and, by means of a bond, discharge the garnishee, and procure the release of the money, property, or effects tied up by the process. Yet that is what is claimed for the statute by respondents’ counsel. It would appear from the language used that this provision of the statute was designed for the relief of defendants whose money or property or effects have actually been reached by process which deprives them of immediate collection or possession, and was not intended to be available to a defendant who is wholly indifferent as to the result of the garnishee process. If this be the proper construction of section 5342, it would seem to follow that a defendant and his sureties who gratuitously interfere in a matter of no concern to them, by executing and filing a bond conditioned as this was, changing the whole course of the proceeding, absolving the garnishee from all liability to the plaintiff, and preventing his examination in the manner prescribed by statute, are not in a position to assert, when suit is brought on the bond, that the garnishee was not indebted to the defendant in some amount, or that he had no money or property or effects in his hands or under his control belonging to such defendant.

But we are not obliged to decide, solely because of the language found in the statute, that the principal and the sureties on the bond cannot be permitted to deny that any indebtedness existed, and that no money, property, or effects belonging to the defendant were in the possession of the garnishee; for, as before stated, it was admitted in the instrument. It was therein stated that plaintiff had garnished the money, property, and effects of the defendant in the hands of the garnishee. This was an admission in a judicial proceeding which these defendants, who made it, are es-topped to controvert. It was an assertion that defendant’s money or property had been subjected to a valid garnishment, and having made the assertion in a bond which, because of the statute author[13] izing it, plaintiff was compelled to accept as a substitute for a proceeding he had already instituted to reach defendant’s money and property, the latter, and those who asserted the same thing, cannot be permitted to repudiate and disavow it. See Johnston v. Oliver, 51 Ohio St. 6, 36 N. E. 458.

The conditions of the bond in question are the same, with the necessary verbal changes, as those prescribed for a bond to obtain the discharge of an attachment. G. S. 1894, § 5299. We think no one would question the proposition that if the indebtedness in question had been attached under a writ, as it might have been (Id. § 5293), instead of being impounded through garnishee process, and the statutory bond had been filed, containing the admission found in the bond now involved, and the attached debt thereby released, the obligors would not be permitted to contest it upon grounds inconsistent with the truth of the admission. It has been held in this court that this is the rule where a defendant in attachment proceedings has receipted to the sheriff for attached personal property. Easton v. Goodwin, 22 Minn. 426. And, on principle, no distinction can be made between-a bond and a receipt, if each contains admissions of the same force and character. No distinction seems to have been made by the courts between the liability of receiptors of attached property, and the obligation assumed by persons who have executed and filed dissolution bonds, if both instruments contain the admission we have referred to. Birdsall v. Wheeler, 58 Conn. 429, 20 Atl. 607; Peterson v. Woollen, 48 Kan. 770, 30 Pac. 128. The reasons for the rule applied in all cases of this nature are well stated in 1 Green-leaf, Ev. § 22.

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Greengard v. Fretz, 65 N.W. 949, 64 Minn. 10, 1896 Minn. LEXIS 52 (Mich. 1896).

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