Leeds, Inc. v. Louisville & Nashville Railroad

56 N.E.2d 461, 73 Ohio App. 330, 40 Ohio Law. Abs. 369
CourtOhio Court of Appeals
DecidedMarch 22, 1943
Docket6237
StatusPublished

This text of 56 N.E.2d 461 (Leeds, Inc. v. Louisville & Nashville Railroad) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Leeds, Inc. v. Louisville & Nashville Railroad, 56 N.E.2d 461, 73 Ohio App. 330, 40 Ohio Law. Abs. 369 (Ohio Ct. App. 1943).

Opinion

OPINION

By ROSS, P.J.

Appeal on questions of law from a judgment of the Municinal Court of Cincinnati, Ohio, against the defendant, a garnishee who has refused to pay the creditor of its debtor employee pursuant to a former order made in proceedings in aid of execution.

The simple question of law presented by the appeal is whether the Municipal Court of Cincinnati may sustain a garnishment against the defendant, a Railroad Company, upon whom it has obtained personal service of summons, based upon a debt owing by the Railroad Company to its employee, a resident of Kentucky, receiving his pay from the railroad in Kentucky, but who contracted the debt to the plaintiff in Ohio, and where it appears the railroad company also does business and has property within the jurisdiction of the Municipal Court of Cincinnati. , .

The answer to this question is that such garnishment may be sustained. The authorities on the question are not all in accord. The conclusions in the cases considered have usually *371 been controlled by the determination as to the situs of the debt owing by the garnishee to the employee.

This conflict is well stated in Harvey v Thompson, 128 Ga. 147:

“The question as to where is the situs of intangible property, such as choses in action, for the purpose of attachment and garnishment, is one that has been subject of numerous decisions. The conflict of opinion on the subject is distressing and hopeless. In some cases it is held that the situs, for the purpose of garnishment proceedings, is the domicile of the principal defendant, in others that it is the domicile of the garnishee, and still others that it is the domicile of the debtor or wherever he may be found and sued. 20 Cyc. 1036; Brown on Jurisdiction, 2 Ed., See. 150.”

However, in Harris v Balk, 198 U. S. 215, the Court say:

“Attachment is the creature of the local law; that is, unless there is a law of the state providing for and permitting the attachment it cannot be levied there. If there be a law of the state providing for the attachment of the debt, then if the garnishee be found in that state, and process be personally severed upon him therein, we think the court thereby acquires jurisdiction over him, and can garnish the debt due from him to the debtor of the plaintiff and condemn it, provided the garnishee could himself be sued by his creditor in that state.”

If the instant judgment against the defendant is satisfied, this would be a bar to any subsequent action either by the plaintiff creditor or the debtor employee elsewhere. See: Restatement, Conflict of Laws, p. 166; Harris v Balk, supra; L. & N. R. R. v Deer, 200 U. S., 176; B. & O. R. R. Co. v Hostetter, 240 U. S. 620.

Such protection does not apply where the employer, the employment, and the prevailing obligation are in a foreign country, which will not recognize such satisfaction. See: Weitzel v Weitzel, 27 Ariz., 117, where many of the authorities noted herein are discussed in the opinion.

If the defendant railroad company refused to pay its employee in Kentucky, there can be no question that such employee might sue the railroad company in this state if proper *372 service were obtained upon it, and such railroad company was doing business as it is in the jurisdiction of the Court.

What has been said thus far shows how the weight of authority presses in favor of sustaining the garnishment. This is illustrated also in the notes in 27 A. L. R. p. 1399, also in Section 108, Restatement, Conflict of Laws,p. 165, where in the latter authority it is stated:

“A state can exercise through its courts jurisdiction to compel payment by a debtor who is subject to the jurisdiction of the state of a claim against him in favor of his creditor and to apply the proceeds to the satisfaction of a claim asserted by a third person, as plaintiff, against the creditor, although the state has no jurisdiction over the creditor.”

“Illustration:

1. A has a claim against B for a debt of $1000 and B has a claim against C for a debt of $500. A brings an action against B in a court of state X and serves a summons upon C who is temporarily in X. B is domiciled in state Y and is served with a summons in Y. B fails to appear in the action. The court has jurisdiction to give a judgment that A recover $500 from C, and payment of the judgment by C gives a defense to B’s claim against him, which will be recognized as valid in other states.”

See also: Vol. 12 University of Cincinnati Law Review, p. 414, annotating this section 108 Conflict of Laws — where the several Ohio authorities are noted.

It is the claim of the defendant garnishee that Ohio does not appear in the column favoring sucfl power in our Courts. The first case noted by defendant is that of American Sheet & Tin Plate Co. v Lewis, 20 O. C. C. (N. S.) 443. This case is in direct conflict with the general rule. It is largely based upon the case of The Buckeye Pipe Line Co. v Fee, 62 Oh St 543. The second paragraph of the syllabus of the Fee case is:

“Our statutes regulating attachment and garnishment (sections 5522, Revised Statutes, and following), do not give to the court issuing such process jurisdiction over property of the defendant situate wholly beyond the borders of the state, nor power to require a garnishee having property of the defendant in his possession without the state to surrender the *373 same into the custody of the court, and an order on the garnishee requiring such act is without legal effect.”

In this case by order of garnishment, the plaintiff in an Ohio Court sought to reach 1036 barrels of oil held by the defendant “garnishee” in Indiana to the order of the judgment debtor.

In the opinion the reason for the conclusions of the Court expressed in the portion of the syllabus quoted is apparent:

“Coming now to the merits of the case, the question presented is whether or not the court of Allen County had, by virtue of the attachment proceedings, such control or jurisdiction over the property of the defendants situate in Indiana, and- in the possession of the Company, as to enable it to make a valid order requiring the garnishee to produce that property in Allen County and surrender it into the custody of the Court. And as to the garnishee, the question is not merely, whether the garnishee had property of the debtor in its hands, but whether it had the property under such circumstances as to make it answerable for it in Allen County.

“It is to be remarked at the outset that an attachment proceeding is exclusively a statutory one, and hence we look to our law regulating attachments for the source of authority to the court and its officers. What that statute lawfully authorizes, the plaintiff in attachment is entitled to demand; what it fails to authorize he may not demand, for it is well established that equity does not and cannot aid the statute. The purpose of the statute is to reach the property of defendant in the suit, and subject to the demand of the plaintiff.

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Related

Harris v. Balk
198 U.S. 215 (Supreme Court, 1905)
Louisville & Nashville Railroad v. Deer
200 U.S. 176 (Supreme Court, 1906)
Baltimore & Ohio Railroad v. Hostetter
240 U.S. 620 (Supreme Court, 1916)
Weitzel v. Weitzel
230 P. 1106 (Arizona Supreme Court, 1924)
Harvey v. Thompson
57 S.E. 104 (Supreme Court of Georgia, 1907)
Hollister v. Goodale
8 Conn. 332 (Supreme Court of Connecticut, 1831)

Cite This Page — Counsel Stack

Bluebook (online)
56 N.E.2d 461, 73 Ohio App. 330, 40 Ohio Law. Abs. 369, Counsel Stack Legal Research, https://law.counselstack.com/opinion/leeds-inc-v-louisville-nashville-railroad-ohioctapp-1943.