Hoopes v. District Court of the First Judicial District

375 P.2d 691, 141 Mont. 128, 1962 Mont. LEXIS 20
CourtMontana Supreme Court
DecidedNovember 8, 1962
DocketNo. 10488
StatusPublished

This text of 375 P.2d 691 (Hoopes v. District Court of the First Judicial District) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hoopes v. District Court of the First Judicial District, 375 P.2d 691, 141 Mont. 128, 1962 Mont. LEXIS 20 (Mo. 1962).

Opinion

MR. JUSTICE CASTLES

delivered the Opinion of the Court.

This is an original proceeding. Relators sought a writ of prohibition or other appropriate writ under circumstances hereinafter described. On August 13, 1962, we issued an order to show cause why a peremptory writ of prohibition, or writ of review should not be issued from this court, revoking and anulling the proceedings in which the hereinafter described judgment was rendered against the relators in this action.

This proceeding arises from these facts. Relators are four doctors doing business as the Helena Medical Clinic, the Clinic being an association formed December 1, 1960. On April 20, 1961, a complaint was filed in the district court of Lewis and Clark County against Dr. McVey, one of the relators, on an Illinois judgment for alimony and support payments in that state. On November 13, 1961, a judgment was entered against Dr. McVey in the amount of $2,150 plus interest. Since the judgment was entered, writs of execution were levied each month, on the Helena Medical Clinic, resulting in collection of $1,193 toward the satisfaction of the judgment.

On July 11, 1962, the plaintiff in the civil action, the judgment creditor, filed an affidavit by her counsel, seeking a supplemental hearing under the provisions of R.C.M.1947, §§ 93-5901 to 93-5913, inclusive, such statutory provisions providing generally for proceedings supplementary to execution. The affidavit, appearing as Exhibit A, is captioned McVey v. McVey. It recites the obtaining of the judgment in Montana, the issuance of a writ of execution. It then recites the efforts to execute on the judgment, including a hearing held on January 11, 1962, in a proceeding supplementary to execution. [130]*130Then it recites that on May 31, 1962, a deputy sheriff served a copy of a writ of execution and notice of levy of execution on one Gene Brown, manager and bookkeeper of the Helena Medical Clinic; that on May 31 Mr. Brown made a return, showing that Dr. McYey was paid by check on May 31, the check being dated May 28; and that on June 29 Mr. Brown in response to another writ of execution made a return showing that no salary or other compensation was owing to Dr. McYey.

The affidavit went further to recite that the only known assets of Dr. McYey with which to satisfy the judgment are monies periodically due to him from the Helena Medical Clinic. Then it recited that, “if the said Gene Brown, business manager of the Helena Medical Clinic, makes disbursements to the defendant of monies due to him * *' * prior to the date on which monies are due and owing to the said defendant, this will seriously interfere with the plaintiff’s right to execution * *

The affidavit then went on to recite the necessity of having Mr. Brown and Dr. McYey, and “such other persons as may have knowledge of financial transactions between the Helena Medical Clinic and the defendant,” appear and answer questions about the financial transactions involved.

The district court on July 12 ordered Gene Brown and Dr. McVey to appear with the records on July 18.

We note here that at no place in the proceedings were relators Hoopes, Wright, and Spaulding mentioned or served with process.

At the hearing, counsel for Dr. McYey objected to the proceedings upon the grounds that the afore-described affidavit failed to state facts warranting such hearing. The objections were overruled and Mr. Brown and Dr. McYey were questioned. During the testimony it was brought out that subsequent to a previous hearing on January 11, 1962, Dr. McYey adopted a practice of making frequent withdrawals from the [131]*131Clinic of money, sometimes in advance of any being due. It was also shown, and found by the trial court, that the Clinic issued and delivered a check to Dr. McVey for $625 on May 31, 1962, said check being postdated to May 28, 1962. It was on May 31 that the writ of execution was served on Mr. Brown, the business manager. Then, subsequent to the order directing the appearance of Mr. Brown and Dr. McVey to appear on July 18 to answer questions in proceedings supplementary to execution, another check in the amount of $400 was issued to Dr. McVey, this being on July 16.

Based upon the foregoing showing, and other evidence, the trial court found that Dr. McVey, “wilfully and purposely engaged in a course of conduct designed to totally defeat and thwart the payment of said judgments and the process of this court.” The court further found that Dr. McVey had a continuous and accruing interest in the Clinic and the earnings of the Clinic, including accounts receivable.

The trial court on July 18 rendered its judgment, which is the subject of this special proceeding. That judgment, “OBDEEED AND ADJUDGED that the plaintiff have and recover from W. J. Hoopes, M. D., K. J. Wright, M. D., J. B. Spaulding, M. D., and E. J. McVey, M. D., co-partners, doing business under the name and style of the Helena Medical Clinic, a co-partnership, the sum of $956.69.”

In other words, a judgment against McVey, became a judgment against his three associates, even though they were not served with process, not present, were not parties, and were not represented. It should be borne in mind that on the proceedings supplemental to execution, the three named doctors Avere not brought in, even as witnesses.

We make the foregoing comments on the record in spite of the respondent court’s assertions in its brief on the return that (a) the three relators, Hoopes, Wright and Spaulding were “adequately represented therein by Gene Brown, their agent and servant”; (b) that the same three relators had no[132]*132tice of the proceedings in that “there can be little doubt that Emerson K. McVey discussed the pending hearing with his associates at the Helena Medical Clinic, and there can be even less doubt that Gene Brown, * * # discussed the matter quite thoroughly with his employers”; and (c) that the three named relators were in fact represented by counsel at the hearing. These matters do not appear in the record; and, in fact, appear to the contrary or are sheer speculation.

R.C.M.1947, §§ 93-5901 to 93-5913, inclusive, provide for proceedings supplemental to execution.

Section 93-5906 reads:

“The judge or referee may order any property of a judgment debtor, not exempt from execution, in the hands of such debtor or any other person, or due to the judgment debtor, to be applied toward the satisfaction of the judgment.” Section 93-5907 reads:

“If it appear that a person or corporation, alleged to have property of the judgment debtor, or to be indebted to him, claims an interest in the property adverse to him, or denies the debt, the court or judge may authorize, by an order made to that effect, the judgment creditor to institute an action against such person or corporation for the recovery of such interest or debt; and the court or judge may, by order, forbid a transfer or other disposition of such interest or debt, until an action can be commenced and prosecuted to judgment. Such order may be modified or vacated by the judge granting the same, or the court in which the action is brought, at any time, upon such terms as may be just.”

In Johnson v. Lundeen et al., 61 Mont. 145, 148, 200 P. 451, 452, this court in considering proceedings supplemental to execution said:

# * “Whenever the provisions of our statutes are invoked in supplemental proceedings in aid of execution the court must look to the statute for whatever power it may desire to exercise.

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Cite This Page — Counsel Stack

Bluebook (online)
375 P.2d 691, 141 Mont. 128, 1962 Mont. LEXIS 20, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hoopes-v-district-court-of-the-first-judicial-district-mont-1962.