Guay v. Wilde-Winkworth Oil Corp.

174 Misc. 580, 22 N.Y.S.2d 90, 1940 N.Y. Misc. LEXIS 2075
CourtNew York County Courts
DecidedJuly 22, 1940
StatusPublished
Cited by2 cases

This text of 174 Misc. 580 (Guay v. Wilde-Winkworth Oil Corp.) is published on Counsel Stack Legal Research, covering New York County Courts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Guay v. Wilde-Winkworth Oil Corp., 174 Misc. 580, 22 N.Y.S.2d 90, 1940 N.Y. Misc. LEXIS 2075 (N.Y. Super. Ct. 1940).

Opinion

Ottaway, J.

The facts in the case before us are not in dispute. On January 21, 1933, George E. Guay secured a judgment against Myron C. Baker in the City Court of Dunkirk, N. Y. On September 29, 1933, a garnishee execution was issued in that court against Baker. Later-, Baker was employed by this defendant, the WildeWinkworth Oil Corporation, and, the first garnishee execution having been returned only partly satisfied, a new execution against wages was secured from the City Court of Dunkirk.

This second execution was issued November 6, 1937. Baker has continued to work for this defendant since that date and no order has been sought or made to vacate or modify the garnishee execution.

On December 30, 1937, Baker was duly adjudicated a bankrupt and on February 17, 1939, was duly discharged in bankruptcy by the United States District Court for the Western District of New York. The claim and judgment of this plaintiff was duly listed in the schedule of debts filed on behalf of Baker and was again included and covered by the proceeding for Baker’s discharge in bankruptcy.

After Baker was adjudicated a bankrupt, his employer, this defendant, paid all sums then due on the garnishee execution, such payment covering the whole period up to the date of the adjudication in bankruptcy. Since that time the employer has made no [581]*581deductions from salary. Suit is brought by George E. Guay relying on the provisions of subdivision 3 of section 684 of the Civil Practice Act, which provides that an employer to whom a garnishee execution has been duly presented who shall fail or refuse to pay over the percentage of wages under the terms of the execution “ shall be liable to an action therefor by the judgment creditor named in such execution.”

The court below gave judgment in favor of the plaintiff against the employer and from that judgment the employer appeals.

It is at once apparent that had any interested party made appropriate application to modify the garnishee execution or had application been made at the end of a year from the date of discharge to cancel the judgment of record (Debtor and Creditor Law, § 150), such motions must have been granted. Undoubtedly the best practice would have dictated that these applications be duly and appropriately made. Such procedure would have given effect to the order of the Federal court granting Baker a discharge from all his debts including this judgment. However, these applications were not made.- Is the Federal District Court order for discharge any the less effective in relieving Baker from the payment of his debts by reason of this failure to take some appropriate action in State court? In our opinion the correct answer is in the negative.

The order for discharge of debts is not predicated on further procedure elsewhere. It does not provide that Baker be relieved of payment at some time in the future if and when he secure some further order in State courts. It provides such relief immediately and unconditionally. That order of the Federal court is the law of the land and we must give it effect here.

So far as wages that have been earned at the time of adjudication in bankruptcy are concerned, the State court by its garnishee process has secured control. But when Baker was adjudicated a bankrupt and such proceedings carried on to his discharge, his obligation to pay was ended. It is not material that such obligation to pay had been reduced to judgment in the State courts and was there subject to direction in the form of an execution against wages. This practice relates to payments already made but it cannot be held to carry on. It cannot create a future or continuing obligation to pay which will survive release in bankruptcy. It follows that this judgment must be reversed.

There is another view of this proposition which leads to the same conclusion. Plaintiff, at the time of bringing this present action, was no longer a judgment creditor of Baker’s. The original debt resulting in judgment in favor of Guay against Baker had been discharged. When it is said in subdivision 3 of section 684 of the [582]*582Civil Practice Act that the employer is liable in an action to be brought by the person named in such execution as judgment creditor, it does not mean just one who was originally in the position of judgment creditor. For instance, such action could not be brought by an original judgment creditor who had assigned his right to another; nor one against whom a judgment of reversal had been granted on appeal. This language means one who is truly a judgment creditor at the time and not one who only carries the empty shell of that title and is such in name only.

It follows that after the discharge of the claim of plaintiff in bankruptcy he may not bring a new action to recover on it. This present action stems back to plaintiff’s original claim and judgment. If that claim has been paid, or assigned, or discharged, the courts will not entertain a new action to enforce that right which he once possessed but which has since been lost.

In the case before us, no sums were paid so we have no problem of disposing of items which were collected and concerning which title should now be determined. We here hold that the plaintiff may not bring a new action to enforce a claim now dead by reason of discharge in bankruptcy.

It has also been urged that it is important to here consider whether the judgment (as distinguished from the debt) has been discharged. Section 150 of the Debtor and Creditor Law provides that at any time after one year from the discharge in bankruptcy, the debtor may apply to the court to have the judgment discharged of record. This procedure relates to clearing the record and particularly to the effect of the lien of a judgment on real property. The section, however, specifically provides that in all other respects (save as to lien on real property) the judgment shall be of no force or validity. It follows that the judgment is unenforcible (except as to its lien on real property), and it is immaterial here to consider whether or not the appropriate proceeding to discharge this judgment of record has been conducted.

The cases referred to in the briefs seem, when carefully considered, not seriously in conflict with these views.

In Friedman v. Gibbons (101 Misc. 356) a motion was made to vacate the garnishee order after the discharge of the defendant in bankruptcy. The court directed that this order be modified to provide for payment to the defendant of all moneys collected since the adjudication in bankruptcy., We agree that the correct result was reached.

In Taylor v. Buser (167 N. Y. Supp. 887) the court was dealing with a judgment recovered on a claim for assault and battery. Such claim and such judgment are not dischargeable in bankruptcy. [583]*583The case cannot be considered an authority in a proceeding dealing with a dischargeable debt.

The case principally relied upon by the defendant is Ulner v. Doran (167 App. Div. 259). However, even this case does not seem decisive of the problem before us. In the opinion of Scott, J., is found the following: “ The true rule is that as to earnings which become due after the discharge in bankruptcy there remains no indebtedness to be satisfied.” The appellate court was here passing upon the refusal of the justice at Special Term to modify a garnishee execution after discharge in bankruptcy. That Special Term order was modified by the Appellate Division so

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Bluebook (online)
174 Misc. 580, 22 N.Y.S.2d 90, 1940 N.Y. Misc. LEXIS 2075, Counsel Stack Legal Research, https://law.counselstack.com/opinion/guay-v-wilde-winkworth-oil-corp-nycountyct-1940.