Hooter v. Wilson

256 So. 2d 808, 1972 La. App. LEXIS 6928
CourtLouisiana Court of Appeal
DecidedJanuary 10, 1972
DocketNo. 4648
StatusPublished
Cited by3 cases

This text of 256 So. 2d 808 (Hooter v. Wilson) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hooter v. Wilson, 256 So. 2d 808, 1972 La. App. LEXIS 6928 (La. Ct. App. 1972).

Opinion

GULOTTA, Judge.

The origin of this appeal is a suit on open account brought by plaintiff, Ory J. Hooter d/b/a O. J. Hooter Furniture Company, against defendant, Richard Wilson, for payment due on merchandise purchased from plaintiff. Judgment in the amount of $305.77 was rendered on March 6, 1968, in First City Court for the City of New Orleans in favor of plaintiff and against defendant, an employee of the City of New Orleans. A writ of fieri facias coupled with a garnishment proceeding was issued against the City. A judgment dated October 16, 1968, ordered the City to pay plaintiff 20 percent of defendant’s wages, provided “said payments, however, shall never encroach upon the amount exempt by law, namely the sum of ONE HUNDRED DOLLARS per month”, after any and all prior garnishments were fully paid.

This was pursuant to the then existing LSA-R.S. 13:3881 as amended in 1960 which provided in part:

“The following income or property of a debtor is exempt from seizure under any writ, mandate, or process whatsoever:
“(1) Eighty per cent of the wages, salary, commissions, or other compensation earned by him, but in no case shall this exemption be less than one hundred dollars monthly; * * *” (emphasis ours).

The garnishee, City, paid plaintiff from defendant’s wages from June through September, 1970. In October, the garnishee, City, discontinued withholding 20 percent of the wages of defendant urging as a reason the passage of Act 242 of 19701 adopted by the Louisiana Legislature on July 2, 1970, and the Federal Garnishment Law, 15 U.S.C. Section 1671 et seq.

The City took the position that the new Act 242 of 1970 which sets the amount exempt from garnishment at $70.00 per week supersedes the former Act and should be applied to existent garnishments regardless of whether the principal obligation was adjudicated and became final prior to the passage of the Act. At this time defendant’s earnings were approximately $285.00 per month payable biweekly.

A motion to revive the garnishment was brought by plaintiff, and the court in January, 1971, issued a judgment ordering the City to deduct and pay to plaintiff 20 percent of defendant’s wages until the original judgment was finally paid pursuant to the former garnishment statute, i. e., LSA-R. S. 13:3881, as amended 1960.

The appeal presently before us is from the January, 1971, judgment wherein the trial court refused to apply the provision of Act 242 of 1970 to a garnishment judgment rendered prior to that Act.

The question posed for our consideration is whether a legislative act increasing the amount of the exempt part of the salary not subject to garnishment can be retroactively applied to a judgment of garnish[810]*810ment which fixed the exempt portion of the debtor’s wages.

Plaintiff, in seeking affirmation of the judgment of the trial court, relies on the argument that Act 242 of 1970 is unconstitutional because it impairs the obligation of contracts and is thereby violative of Art. 4, Section 15 of the Louisiana Constitution and Art. 1, Section 10 of the United States Constitution. This argument has no validity for the reason that the right of seizure under the garnishment provisions is not acquired through contract as in a vendor’s lien and mortgage. A garnishment comes into existence not by contract but by operation of law by the issuance of a writ of seizure or fieri facias after a judgment has been obtained. Featherston’h v. Compton, 3 La.Ann. 380 (1848); O.K. Realty Co. v. Juliani, 1 La. App. 1 (1924), cert, and mandamus denied, 157 La. 277, 102 So. 399. The question here is not one of impairment of contract.

Plaintiff’s position can only be maintained if it is determined that his rights are impaired because of an infringement on a vested right. Therefore, we must decide whether plaintiff had a vested right to seize defendant’s salary prior to the passage of Act 242 of 1970 and whether retrospective application of the Act would adversely affect this substantive right. If the answers to these questions are in the affirmative, then plaintiff’s vested right to seize under the judgment of garnishment would be adversely affected and the Act cannot be retroactively or retrospectively applied.

Though garnishment as such in its overall application is a method of execution and to that extent is remedial in nature, nevertheless a statute which deprives the judgment creditor of the right to seize a portion of the debtor’s salary by reason of a change in the amount of the exemption, as in this particular case, is a deprivation of a vested right. It deprives the plaintiff of his right to seize any of defendant’s salary which was heretofore permitted under the prior exemption.

It is important in this case that plaintiff had seized under a prior garnishment before the passage of the Act, and subsequent thereto plaintiff is deprived of his right to pursue garnishment proceedings because the additional exemption is in such an amount that defendant’s entire salary is exempt.2

In the instant case, the judgment obtained by plaintiff was a money judgment; a money judgment is a vested right and not subject to change. Hausser v. Hausser, 181 So. 657 (Orl.La.App.1938). Wright v. Wright, 189 La. 539, 179 So. 866 (1938). Black’s Law Dictionary, 4th Edition, (1957) defines “vested rights” in part:

“VESTED RIGHTS. In constitutional law. Rights which have so completely and definitely accrued to or settled in a person that they are not subject to be defeated or canceled by the act of any other private person, and which it is right and equitable that the government should recognize and protect, as being lawful in themselves, and settled according to the then current rules of law, and of which the individual could not be deprived arbitrarily without injustice, or of which he could not justly be deprived otherwise than by the established methods of procedure and for the public welfare. Cassard v. Tracy, 52 La.Ann. 835, 27 So. 368, 49 L.R.A. 272; Stimson Land Co. v. Rawson, C.C.Wash., 62 F. 429 [426]; Parker v. Schrimsher, Tex. Civ.App., 172 S.W. 165, 168.”

In order that a judgment or decree may be given the effect of a “vested right”, it must be a final determination of the rights of the parties. State ex rel. Weingart v. Kiessenbeck, 167 Or. 25, 114 P.2d 147, 149, 150 (1941); Kelly v. Hall, 191 Ga. 470, 12 [811]*811S.E.2d 881, 883. Since a judgment is personal property which gives rise to vested rights, the legislature cannot by retroactive law, either destroy or diminish it in value. State ex rel. Weingart v. Kiessenbeck, supra.

We are of the opinion that if the amended statute were applied retroactively, it would destroy plaintiff’s vested right which accrued immediately upon the rendition of the judgment of garnishment pursuant to LSA-R.S. 13:3921.3 Once that judgment was rendered, it became final and thus, under the provisions of R.S. 13:39234, payments to plaintiff were henceforth to be made out of the non-exempt portion of defendant’s salary until the indebtedness was paid. The judgment therefore gave plaintiff a “vested right” in the then existent portion of defendant’s salary which was subject to seizure.

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Related

Natchitoches Collections, Inc. v. Gorum
274 So. 2d 449 (Louisiana Court of Appeal, 1973)
Hooter v. Wilson
258 So. 2d 550 (Supreme Court of Louisiana, 1972)

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Bluebook (online)
256 So. 2d 808, 1972 La. App. LEXIS 6928, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hooter-v-wilson-lactapp-1972.