Martin v. C.D. Gray, Inc.

110 F.R.D. 398, 1986 U.S. Dist. LEXIS 24508
CourtDistrict Court, N.D. Illinois
DecidedJune 6, 1986
DocketNo. 80 C 3151
StatusPublished
Cited by11 cases

This text of 110 F.R.D. 398 (Martin v. C.D. Gray, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Martin v. C.D. Gray, Inc., 110 F.R.D. 398, 1986 U.S. Dist. LEXIS 24508 (N.D. Ill. 1986).

Opinion

MEMORANDUM DECISION

JOAN H. LEFKOW, United States Magistrate:

James F. Gray, against whom judgment was entered in this cause on January 3, 1986 has moved, by his attorneys, to quash the supplementary proceedings initiated in this action on the basis that the judgment debtor has not been served personally.

The docket reflects that a citation in supplemental proceedings was issued on February 5, 1986 by the clerk. On February 21, 1986, service was effected on Lord, Bissell and Brook, who had represented Gray in defense of the contempt proceeding against him which resulted in the judgment. On March 4,1986, the court granted these attorneys leave to withdraw.

Gray relies on Rule 69 of the Federal Rules of Civil Procedure, which incorporates state practice and procedure for proceedings supplementary to judgment,1 in conjunction with Manley Motor Sales Company v. Kennedy, 95 Ill.App.3d 199, 50 Ill.Dec. 679, 419 N.E.2d 947 (2d Dist. 1981). In Manley, the court ruled that service on the judgment debtor’s former attorneys, who had represented him prior to judgment and noticed an appeal but later withdrew as his attorney, did not comply with former § 73 of the Civil Practice Act, now Ill.Rev.Stat. ch. 110, § 2-1402, and Rules 277(c) and 105(b) of the Illinois Supreme Court, Ill.Rev.Stat. ch. 110A, §§ 277(e) and 105(b). The court reasoned that § 73 provides that “a supplementary proceeding shall be commenced by service of a citation issued by the clerk according to procedures prescribed by rules.” Manley, 95 Ill.App.3d at 201, 50 Ill.Dec. at 680-81, 419 N.E.2d at 948-49. Supreme Court Rule 277 provides that in the supplemental proceeding, “ ‘[t]he citation shall be served and returned in the manner provided by rule for service, otherwise than by publication, of a notice of additional relief upon a party in default.’ ” Supreme Court Rule 105 provides for service of a notice of additional relief upon a party in default, stating as quoted in Manley,

(b) Service. The notice may be served by any of the following methods:

(1) By any method provided by law for service of summons, either within or without the state____

(2) By prepaid, certified or registered mail addressed to the party____ Ill.Rev. Stat. 1979, ch. 110A, par. 105(b).

Manley, 95 Ill.App.3d at 201, 50 Ill.Dec. at 681, 419 N.E.2d at 949. Since none of these procedures had been followed, the court concluded that defendant had not been properly served under the rules. Id. at 202, 50 Ill.Dec. at 681, 419 N.E.2d at 949. The court further rejected the argument that an exception should be made for service on attorneys who represented the party in the original action when they are shown to have continued to represent him after the judgment has been entered. Id. Such an exception had been recognized in Illinois under Section 72, now Ill.Rev.Stat. ch. 110 § 2-1401, “Relief from Judg[400]*400ments.” Eg., Public Taxi Service v. Ayrton, 15 Ill.App.3d 706, 304 N.E.2d 733 (1973); Kammes v. Seger, 41 Ill.App.3d 768, 769, 355 N.E.2d 167 (1976). The court distinguished the Section 72 cases from proceedings under Section 73 on the grounds that “Section 72 is an equitable remedy designed to give relief to a party who has been taken unconscionable advantage of by his opponent,” whereas “under Section 73 the party who must achieve service is merely trying to collect a debt and there are no similar equitable considerations to weigh against the debtor.”2 Manley, 95 Ill.App.3d at 202-03, 50 Ill.Dec. at 681, 419 N.E.2d at 949. Finally, reasoning that the essence of the service requirement is to provide due process, the court reflected that it was not clear from the record that notice had actually been given to the judgment debtor. Id.

Plaintiffs in opposition to the motion argue that the service of papers and pleadings in supplemental proceedings is governed by Rule 5 of the Federal Rules of Civil Procedure.3 They rely on Rumsey v. George E. Failing Company, 333 F.2d 960 (10th Cir.1964). Rumsey concerned a proceeding in garnishment upon a federal court money judgment. A garnishee summons was issued and served upon the garnishee, Rumsey. Rumsey filed an answer as garnishee, stating he was riot indebted to and did not hold any assets of the judgment debtor. The plaintiff, following Kansas law, chose to take issue on the answer of the garnishee and “within the 20-day period fixed in [Kansas law] served the same upon the garnishee by mailing it to the attorneys for- the garnishee, in accordance with Rule 5(b), Fed. Rules Civ. Proc.” Id. at 961. Kansas law required personal service on the garnishee of the notice of election to take issue on the answer of the garnishee. Rumsey moved to dismiss on the basis that personal service had not been made upon the garnishee. The court reasoned that the Kansas statute requiring personal service of process was a general statute, not limited in application to supplementary proceedings but dealing generally with civil procedure. Id. at 962. The court ruled that Federal Rules of Civil Procedure with respect to method of service would govern, rather than general provisions of state practice and procedure, “which do not deal specifically with practice and procedure in supplementary proceedings.” Id. The court held that service under Rule 5(b) was proper.

Plaintiff also points out that the court had jurisdiction over Gray at least as early as August 23, 1983, when he appeared in response to a citation proceeding on the judgment against his company, C.D. Gray, Inc.; that the judgment entered in this case on February 3, 1986 was pursuant to a contempt proceeding against Gray personally; that the attorneys who represented Gray in that contempt proceeding were served with the citation requiring Gray to appear before the court on February 21, 1986; that it was not until March 21, 1986 that the attorneys were granted leave to withdraw, after having made the oral representation in open court that all process and correspondence received by them had been promptly transmitted to Gray by mail. Plaintiffs’ Response to Defendants’ Motion for Leave to File Special and Limited Appearance and to Quash Supplementary Proceedings, par. 6.

Gray distinguishes Rumsey on the grounds that Kansas had no specific proce[401]*401dure for service of process in supplemental proceedings, but Illinois does. Thus, Illinois’ procedure should be followed.

The court, like the parties, has found few cases that have considered the precise issue, whether service of a citation to discover assets may be made under Rule 5(b).

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110 F.R.D. 398, 1986 U.S. Dist. LEXIS 24508, Counsel Stack Legal Research, https://law.counselstack.com/opinion/martin-v-cd-gray-inc-ilnd-1986.