L & S Concrete Co. v. Bibler Bros., Inc.

807 S.W.2d 50, 34 Ark. App. 181, 1991 Ark. App. LEXIS 208
CourtCourt of Appeals of Arkansas
DecidedApril 17, 1991
DocketCA 90-189
StatusPublished
Cited by3 cases

This text of 807 S.W.2d 50 (L & S Concrete Co. v. Bibler Bros., Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
L & S Concrete Co. v. Bibler Bros., Inc., 807 S.W.2d 50, 34 Ark. App. 181, 1991 Ark. App. LEXIS 208 (Ark. Ct. App. 1991).

Opinion

Melvin Mayfield, Judge.

L & S Concrete appeals from a judgment rendered it as garnishee in the amount of $19,047.13 plus interest and costs.

On June 29, 1989, appellee Bibler Brothers obtained a default judgment against Arkoma Industries, Inc. in the amount of $19,047.13 plus interest for the balance owed on some lumber Arkoma had purchased from the appellee. The judgment was unpaid and on July 28,1989, appellee filed a writ of garnishment, accompanied by allegations and interrogatories, alleging L & S Concrete was indebted to Arkoma or “has in its hands and possession, goods, chattels, monies, credits and effects” belonging to Arkoma. Interrogatory No. 2 propounded by the appellee is as follows:

2. Had you, in your hands and possession, on or after the date of service of the Writ of Garnishment herein, any goods, chattels, monies, credits and effects belonging to the defendant, Arkoma Industries, Inc.? If so, what was the nature and value thereof?

Appellant denied it was obligated to Arkoma, and in answer to Interrogatory No. 2 stated “No. However, some property of the bank lender of Arkoma is on L & S Concrete Company’s property.”

On September 1, 1989, appellee filed a reply to the appellant’s answers to the allegations and interrogatories served upon the appellant as garnishee. The reply included the following:

3. At the time the writ of garnishment was served on the garnishee, it had in its possession certain lumber belonging to Arkoma Industries, Inc. The plaintiff denies that the lumber belonged to the bank lender of Arkoma as stated in the garnishee’s answer. The garnishee has not answered the interrogatories truthfully or accurately.
4. • The lumber that was in the possession of the garnishee has been removed since the date on which the writ of garnishment was served upon it.

Appellee asked for judgment against appellant in the amount of $19,047.13 plus interest and costs.

A hearing was held November 1,1989, and at the close of the appellee’s evidence, appellant made a motion for a directed verdict on the basis that there was no showing that the property was in any way within the meaning of the garnishment statute “in the possession or control or custody of the garnishee.” The trial court denied appellant’s motion and appellant proceeded to present its evidence.

On November 14, 1989, the trial court sent a letter to the parties which stated:

After a review of the evidence presented and the letter briefs of counsel, it is the finding of the Court that the plaintiff should have and recover from L & S Concrete Company, Inc., garnishee, the amount of the original indebtedness owed by Arkoma Industries, Inc., in the amount of $19,047.13 plus interest and costs.
The Court finds that the value of the property held by the garnishee was $22,000.00 to $23,000.00. The Court feels that L & S Concrete Company, Inc., had in its hands or possession the property of Arkoma Industries, Inc. Even though Mr. Charlie Weaver indicated that he was not aware of the property being on the L & S property, the Court feels that the facts would indicate that he did. Mr. Fred Weaver, who is owner of Arkoma Industries, Inc., and brother of Charlie Weaver, indicated that he had open use of the L & S property whenever he needed. It is difficult for the Court to believe that L & S Concrete Company, Inc., was not aware of three large truckloads of timber products on its property.
L & S Concrete Company, Inc., apparently had knowledge of the physical presence of the lumber on its property when it answered the allegations and interrogatories of plaintiff stating that property of the bank lender of Arkoma Industries, Inc., was situated on its property.

On November 20, 1989, the trial court entered an order granting appellee judgment in the amount of $20,060.74 plus post-judgment interest at the rate of ten percent per year until paid.

Appellant argues on appeal that the trial court committed reversible error by denying its motion for a directed verdict because garnishment was improper in this case. Appellant contends it cannot be liable as garnishee because (1) it owed no debt to Arkoma; (2) that the property did not belong to Arkoma because it was specially manufactured pursuant to a purchase order and subject to a perfected security interest held by Arkoma’s lender; and (3) that property was not in its hands or possession.

Arkansas Code Annotated § 16-110-102 (1987) states:

(a)(1) Whenever, in a civil action, the plaintiff shall have reason to believe that any other person is indebted to the defendant or has in his hands or possession goods and chattels, moneys, credits, and effects belonging to the defendant, the plaintiff may sue out a writ of garnishment.

Appellant’s argument that it cannot be liable as garnishee because it owed no debt to Arkoma ignores the alternative provision “or has in his hands or possession goods and chattels . . . belonging to the defendant” set out in the above statute. Appellee cited Harris v. Harris, 201 Ark. 684, 146 S.W.2d 539 (1941), which stated “it is the settled rule that the effect of the service of the writ of garnishment is to impound all property in the hands of the garnishee belonging to the judgment debtor,” but appellant says the garnishee in that case “actually owed a debt to the judgment debtor.” However, in Patterson v. Harland, 12 Ark. 158 (1851), the garnishee had about 140 bushels of corn in his possession, one-half of which belonged to the judgment debtor, and judgment was rendered against the garnishee for the value of the corn. Clearly, the garnishee was not indebted to the judgment debtor in that case. Moreover, appellant’s argument that the lumber did not belong to Arkoma because it was specifically manufactured for a customer in Iowa and that a bank in Arkansas held a lien on it is not supported by the evidence. This issue is really not seriously argued on appeal. Appellant’s real contention is that it did not have “possession” of the lumber placed on its property because it exercised no control over the lumber.

In support of this argument, appellant cites Foos Gas Engine Co. v. Fairview Land & Cattle Co., 185 S.W. 382 (Tex. App. 1916), and Milwaukee Stove & Furnace v. Apex Heating, 418 N.W.2d 4 (Wis. App. 1987), but we find those cases are not controlling here. Milwaukee Stove was decided on the basis of the Wisconsin garnishment statute which states a creditor may proceed against any person who is indebted to or has “any property in his or her possession or under his or her control.” The property involved was the “complete inventory of shop equipment and materials” of a heating and cooling business which was to be sold at auction by one George Woodrich.

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Bluebook (online)
807 S.W.2d 50, 34 Ark. App. 181, 1991 Ark. App. LEXIS 208, Counsel Stack Legal Research, https://law.counselstack.com/opinion/l-s-concrete-co-v-bibler-bros-inc-arkctapp-1991.