Ide v. Harwood

14 N.W. 884, 30 Minn. 191, 1883 Minn. LEXIS 121
Supreme Court of Minnesota·Decided February 6, 1883·Published·Cited by 6 cases

Opinion

DicKinson, J.*

The defendant Harwood, being largely indebted to this plaintiff and to numerous other persons, made a general assignment to the garnishee, Pettit, for the benefit of his creditors. The assignment included book-accounts owing to Harwood. The account-books in which these debts were charged came into the possession of Pettit as such assignee. This plaintiff thereafter commenced an action against Harwood to recover his debt, and in the action garnished Pettit by the service of a garnishee summons upon him. By supplemental complaint, filed after the disclosure of the garnishee, the assignment of Harwood was alleged to have been fraudulently made, and such proceedings were had that judgment was entered, adjudging such assignment fraudulent and void as to creditors.

The controversy upon this appeal is whether the service of tiie garnishee summons upon Pettit attached the unpaid debts (book-accounts) owing to Harwood. The claim of the plaintiff is contested by other creditors of Harwood, who assert rights respecting the same debts which are the subject of this controversy. They have been, by stipulation, made parties in this proceeding.

The substance of the statute relating to garnishment (Gen. St. 1878, c. 66, tit. 10,) is, so far as need be here considered, as follows: In an action for the recovery of money, upon the filing of an affidavit showing that a person named “has property, money, or effects in his hands, or under his control, belonging to the defendant in such action, or that such person is indebted to the defendant,” a garnishee summons may be issued against such person. Section 164. The summons shall require the person to whom it is directed (garnishee) [193] to appear and answer, “touching bis indebtedness to the defendant, and any property, money, or effects of the defendant in his possession or under his control. ” It is to be served personally upon such garnishee. Section 166. “The service of the summons upon the garnishee shall attach and bind all the property, money, or effects in his hands, or under his control, belonging to the defendant, and any and all indebtedness owing by him to the defendant, at the date of such service, to respond to final judgment in the action.” Section 167. “Bills of exchange and promissory notes, whether un7 der or over due, drafts, bonds, certificates of deposit, bank notes, money, contracts for the payment of money, and other written evidence of indebtedness, in the hands of the garnishee at the time of service of the summons, shall be deemed ‘ effects ’ under the provisions of this section.” Section 172.

It is conceded that the debts in question were subject to garnishment by the creditors of Harwood. The controversy is, as to whether they could be garnished by proceedings directed to Pettit, and not to the debtors owing these debts; whether service of summons upon him operated as an attachment of the debts; or whether summons should have been directed to the several debtors, and served upon them. The plaintiff contends that the garnishment was effectual as to the debts in question, because, according to the common meaning of words, and especially within the definition given to the word “effects” in section 172, the debts were “property” and “effects” of the defendant in the possession and under the control of Pettit, and hence, by the terms of the statute, subject to garnishment by summons directed to and served upon him. The statute above referred to prescribes, in terms which are not obscure or subject to doubt, a method by which a debt may be garnished in an action against the creditor. It consists in the filing of the affidavit, the issuing of the summons to the debtor, and its service upon him, with notice to the principal defendant. The garnishment of debts has been a common proceeding in our practice under this statute for many years, and the method above indicated has been usually, if not always, the one adopted'for that purpose.

The debts in question would clearly have been attachable in this [194] manner, if it had not been for the assignment from Harwood to Pet-Nor, indeed, if the assignment and assumed transfer to Pettit not been made, could garnishment of these debts have been made any other way than by summons served upon the debtors. But assignment neither changed the nature of the debts, the subject the attempted garnishment, nor, as to creditors of Harwood seek-to subject the debts, by attachment or other process, to the satisfaction of their demands, was the assignment effectual as a trans-of the debts, or of any title or right respecting them. As to such creditors it was void, and has been so adjudged in this proceeding. Hence, the obligations of the debtors of Harwood remained as they were before the assignment, and were subject to attachment or garnishment by his creditors only, because, not passing by the void assignment, they were still to be deemed, as to such creditors, as debts owing to Harwood, just as though the assignment had not been made. The attempted garnishment of the debts by plaintiff, by means of service upon Pettit, necessarily rests upon this ground. Garnishment of the debts by him, through any form of procedure, was possible only upon the theory that the assignment was void.

We think, therefore, that, notwithstanding the assignment, the debts were subject to garnishment in the manner clearly designated by statute for reaching a debt of the defendant; that is, by service of summons upon the debtor. From this as a premise we are led to the further conclusion that such prescribed procedure is the only one authorized by the statute. We do not interpret this statute as prescribing two different and dissimilar methods of effecting such a garnishment, either one of which may be pursued at pleasure. It does not provide that garnishment of a mere debt may be made either by proceedings against the debtor and service of summons upon him, or by like proceedings against and service upon the creditor or his assignee, or any trustee to whom the creditor may have assumed to transfer his title. The fact that the statute does clearly designate the former of these methods as a means by which garnishment may be effected, stands as an obstacle to construing the same statute as authorizing the latter mode also, in the absence of reasonably plain provisions indicating such a dual or elective procedure.

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Ide v. Harwood, 14 N.W. 884, 30 Minn. 191, 1883 Minn. LEXIS 121 (Mich. 1883).

14 N.W. 884 (Ide v. Harwood) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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