Keaton v. Fort Wayne Neurosurgery

780 N.E.2d 1183, 2003 Ind. App. LEXIS 4, 2003 WL 68148
CourtIndiana Court of Appeals
DecidedJanuary 9, 2003
Docket02A03-0206-CV-193
StatusPublished
Cited by5 cases

This text of 780 N.E.2d 1183 (Keaton v. Fort Wayne Neurosurgery) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Keaton v. Fort Wayne Neurosurgery, 780 N.E.2d 1183, 2003 Ind. App. LEXIS 4, 2003 WL 68148 (Ind. Ct. App. 2003).

Opinion

OPINION

SULLIVAN, Judge.

Paul Keaton, an attorney from Fort Wayne, Indiana, was hired by Marjorie Wojeik to represent her in a personal injury claim arising out of an accident in which she was injured. It appears, although it is not clear, that as a result of the injuries Wojcik received in the accident, she received treatment from Fort Wayne Neurosurgery. Wojcik owed money to Fort Wayne Neurosurgery for the treatment she received, and on September 25, 2001, she entered into an agreed judgment with Fort Wayne Neurosurgery in the amount of $582.70. 1 Approximately two weeks after the agreed judgment was entered, Fort Wayne Neurosurgery filed a motion for proceedings supplemental, in which Keaton was joined as a garnishee-defendant, in order to collect the judgment owed by Wojcik. In so doing, Fort Wayne Neurosurgery alleged that Keaton had in his possession certain items of Wojeik's property, including wages, salaries, commissions, earnings, and income.

Keaton stated, by sworn affidavit, that neither at that time, nor in the future, did he possess or expect to have control over any property, money, credits, or effects of Wojcik. He filed a motion for summary judgment upon the ground that he was not a proper garnishee-defendant. Following a hearing upon his motion, the trial court granted Fort Wayne Neurosurgery's motion and ordered that Keaton be a garnishee-defendant for the purpose of settling Wojceik's judgment debt to Fort Wayne Neurosurgery. The trial court further ordered that Keaton deduct $629.62, plus interest at eight percent per annum, from any amounts due and owing to Wojcik either at that time, or in the future, which resulted from any chose in action in which he represented Wojcik. Keaton now appeals from the denial of his motion for summary judgment and the trial court's garnishment order in favor of Fort Wayne Neurosurgery. 2

*1185 Summary judgment is appropriate only if the designated evidentiary material demonstrates that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law. Ind. Trial Rule 56(C); Title Search Co., Inc. v. 1st Source Bank, 765 N.E.2d 167, 171 (Ind.Ct.App.2002), trans. denied. We apply the same standard as the trial court and resolve disputed facts and inferences in favor of the non-moving party. Id. The moving party bears the burden of establishing, prima facie, that no genuine issues of material fact exist and that he is entitled to judgment as a matter of law. Id. Onee the moving party has established that burden, the burden then falls upon the non-moving party to set forth specific facts demonstrating a genuine issue for trial. Id. Nevertheless, the party appealing a grant of summary judgment bears the burden of persuading us that the trial court erred. Id.

Pursuant to Indiana Trial Rule 69(E), proceedings supplemental, which are a mere continuation of the underlying claim on the merits, are initiated by verified motion under the same cause number in the same court which entered judgment against the defendant. Arend v. Etsler, 737 N.E.2d 1173, 1175 (Ind.Ct.App.2000). Generally, three forms of relief are available to a judgment-creditor through a proceeding supplemental: (1) the judgment-debtor is required to appear before the trial court and be examined as to available property; (2) the judgment-debtor is required to apply particular property to the satisfaction of the judgment; and (8) a third-party garnishee is joined as a party and is required to answer as to non-exempt property held by the garnishee for the judgment-debtor or an obligation owing from the third party to the judgment debtor. Id. at 1175-76. A garnishment proceeding is a means by which a judgment-creditor seeks to reach property or credits of a judgment-debtor which are in the hands of a third person so that they may be applied in favor of the judgment. WW Extended Care, Inc. v. Aetna Life Ins. Co., 755 N.E.2d 712, 718 (Ind.Ct.App.2001), reh'g denied. In the event that a person is named as a garnishee, the motion must allege that the "garnishee has or will have specified or unspecified nonexempt property of, or an obligation owing to the judgment debtor subject to execution or proceedings supplemental to execution...." Ind. Trial Rule 69(E) (emphasis supplied). Property in which the judgment-debtor has no present interest may not be subject to garnishment. Nat'l Mut. Ins. Co. v. Sparks, 647 N.E.2d 375, 377 (Ind.Ct.App.1995), trams. denied. Indiana law allows collection only against the judgment-debtor and any other person whom the judgment-debtor could have pursued him or herself. Id.

Keaton contends that he is not a proper garnishee-defendant according to Trial Rule 69(E) because he stated in a sworn affidavit, which was designated to the trial court for the summary judgment proceedings, that he did not have in his possession any propérty or money of Wojcik and that he did not expect to ever have control over any property or money that belonged to her. 3 Fort Wayne Neurosurgery responds *1186 that Keaton does have in his possession property of Wojcik in that he controls the chose in action in the form of a lawsuit for personal injuries. The assertion is that so long as Keaton is Wojeik's attorney, he controls the litigation and will be in control whether the chose in action is resolved by settlement or judgment.

While it is true that Keaton is Wo-jeik's attorney, it does not necessarily follow that Keaton has or will have possession or control of any property or money which belongs to Wojcik. We do not agree with the proposition that acting as someone's legal counsel in a personal injury case places the attorney in control of that person's property for purposes of garnishment. In this case, Keaton stated in a sworn affidavit that he did not expect to control any property or assets of Wojcik during the course of his representation of her. This can only mean that any. monetary recovery which Wojcik would receive as a result of her personal injury action would not be payable to Keaton for him to disburse to Wojcik; rather, Wojeik would receive the recovery directly. Fort Wayne Neurosurgery has not designated any evidence which refutes Keaton's claim that he will not control any money or property of Wojcik. Instead, Fort Wayne Neurosurgery claims that the chose in action itself has a value which can be garnished. However, outside of any monetary recovery which Wojeik may receive, the action has no ascertainable value. In Allstate Ins. Co. v. Axsom, 696 N.E.2d 482 (Ind.Ct.App.1998), trans. denied, a panel of this court assumed, without deciding, that "for the sake of argument" a tort claim against an insurer for bad faith failure to settle was assignable. 696 N.E.2d at 484 n. 1. In that case, a jury had returned a verdict in excess of Allstate's policy coverage and the tortfeasor had assigned his bad faith claim to the plaintiff who was attempting to obtain punitive damages against the insurance company.

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Cite This Page — Counsel Stack

Bluebook (online)
780 N.E.2d 1183, 2003 Ind. App. LEXIS 4, 2003 WL 68148, Counsel Stack Legal Research, https://law.counselstack.com/opinion/keaton-v-fort-wayne-neurosurgery-indctapp-2003.