Merrida v. Credit Acceptance Corp.

238 So. 3d 1249
CourtCourt of Civil Appeals of Alabama
DecidedMay 12, 2017
Docket2160188; 2160189
StatusPublished
Cited by2 cases

This text of 238 So. 3d 1249 (Merrida v. Credit Acceptance Corp.) is published on Counsel Stack Legal Research, covering Court of Civil Appeals of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Merrida v. Credit Acceptance Corp., 238 So. 3d 1249 (Ala. Ct. App. 2017).

Opinion

MOORE, Judge.

In appeal number 2160188, Lenita Merrida appeals from a judgment entered by the Mobile Circuit Court ("the circuit court") in case number CV-11-963 to the extent that it limited her constitutional wage exemption, see Ala. Const. 1901 (Off. Recomp.), Art. X, § 204, to the first $1,000 in wages that she earns. In appeal number 2160189, Samantha Nettles appeals from a judgment entered by the circuit court in case number CV-16-59 to the extent that it also limited her constitutional wage exemption to the first $1,000 in wages that she earns. We have consolidated the appeals for the purpose of issuing one opinion.

Procedural History

Appeal Number 2160188

On June 18, 2013, a judgment was entered by the circuit court in favor of Credit Acceptance Corporation ("Credit Acceptance") and against Merrida in the amount of $10,469.89, plus costs. Credit Acceptance subsequently filed an application for a writ of garnishment seeking to garnish Merrida's wages. On January 20, 2016, Merrida filed a verified declaration and claim of exemptions stating, in pertinent part:

"Pursuant to Ala. Const. Art. X, § 204, I claim as exempt from garnishment or any other legal process for the collection of debts, all of my wages from my employment with the garnishee. After my employer took out taxes, social security, and any other garnishment, my net biweekly wages per paycheck average $500. I use all of my income per paycheck as I get it to pay current expenses necessary to maintain myself and my family. I do not have any accumulation of wages from paycheck to paycheck."

After a hearing, the circuit court entered a judgment on August 12, 2016, stating, in pertinent part:

"It is ORDERED that the garnishment directed to [Merrida's employer] is STAYED temporarily from this date until such time as [Merrida] has earned $1,000.00 in gross wages. Upon ... Merrida's gross wages reaching the exemption maximum of $1,000.00, the Garnishee ... shall reinstate the garnishment, withhold the requested sums, and forward same to the Clerk of Court until the judgment in this matter is satisfied.

On September 10, 2016, Merrida filed a "motion to reconsider"; that motion was denied on October 31, 2016. Merrida filed her notice of appeal on December 9, 2016.

*1251Appeal Number 2160189

On May 18, 2011, the Mobile District Court ("the district court") entered a judgment in favor of Credit Acceptance and against Nettles for $13,529.53, plus court costs. Credit Acceptance subsequently filed an application for a writ of garnishment seeking to garnish Nettles's wages. Nettles filed a verified declaration and claim of exemptions stating, in pertinent part:

"After my employer took out taxes, social security, and any other garnishment, my net biweekly wages per paycheck averaged [$]424.00. I am currently on maternity leave until mid Feb 2016 and my earnings are 0. I use all of my income per paycheck as I get it to pay current expenses necessary to maintain myself and my family. I do not have any accumulation of wages from paycheck to paycheck."

On March 7, 2016, the district court entered a judgment stating, in pertinent part:

"It is further ORDERED that the garnishment is hereby STAYED temporarily from this date until such time as [Nettles] earns $1,000.00 in gross wages. Upon [Nettles's] gross wages reaching the exemptions maximum of $1,000.00, [Nettles's employer] shall reinstate the garnishment, withhold the requested sums and forward same to the Clerk of Court until the judgment in this matter is satisfied."

On March 10, 2016, Nettles appealed from the district court to the circuit court.

On August 22, 2016, the circuit court entered a judgment stating, in pertinent part:

"[I]t is ORDERED that the garnishment directed to [Nettles's employer] is STAYED temporarily from this date until such time as ... Nettles has earned $1,000.00 in gross wages. Upon [Nettles's] gross wages reaching the exemption maximum of $1,000.00, [Nettles's employer] ... shall reinstate the garnishment, withhold the requested sums, and forward same to the Clerk of Court until the judgment in this matter is satisfied."

On September 21, 2016, Nettles filed a "motion to reconsider" the circuit court's judgment. That motion was denied on October 31, 2016. On December 9, 2016, Nettles filed her notice of appeal.

Discussion

On appeal, Merrida and Nettles both argue that the circuit court erred in limiting their constitutional wage exemption to the first $1,000 in wages that each of them earn. According to Merrida and Nettles, because they expend the entirety of their wages for the support of their respective families and because they do not ever have an accumulation of $1,000 in wages, they should be able to claim the entirety of their wages as exempt under Ala. Const. 1901 (Off. Recomp.), Art. X, § 204.

Section 204 provides, in pertinent part, that "[t]he personal property of any resident of this state to the value of one thousand dollars, to be selected by such resident, shall be exempt from sale or execution, or other process of any court, issued for the collection of any debt contracted ...."

Although "Act No. 2015-484, Ala. Acts 2015, enacted on June 11, 2015, and codified, in pertinent part, at § 6-10-6.1, Ala. Code 1975, excludes wages from the personal-property exemption under Ala. Const. 1901, Art. X, § 204," Alabama Telco Credit Union v. Gibbons, 195 So.3d 1012, 1015 (Ala. Civ. App. 2015), "[b]ecause [Merrida's and Nettles's respective] debt[s were] incurred before Act No. 2015-484 *1252was enacted on June 11, 2015, [Merrida and Nettles were] allowed to select [their] wages as personal property for exemption under Ala. Const. 1901, Art. X, § 204." Id. at 1016.

In Walker v. Williams & Bouler Construction Co., 46 Ala.App. 337, 341, 241 So.2d 896, 900 (Civ. 1970), this court addressed the issue whether, "after having had the benefit of the full thousand dollar exemption from withheld wages, the employee can claim the same over and over again"; this court explained:

" 'When the exemption has once been claimed, the property selected by the debtor, and allotted to him, so long as he retains it, and it is undiminished in value, he is without right to a further exemption; otherwise double exemptions could be claimed and the whole of his property exhausted, to the prejudice of his creditors. But if the property allotted to him has been taken from him without fault on his part, or it has been consumed in maintaining himself or family, a subsequent exemption may be claimed.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

N. Ala. Real Estate Grp., LLC v. Pineda
266 So. 3d 719 (Court of Civil Appeals of Alabama, 2018)

Cite This Page — Counsel Stack

Bluebook (online)
238 So. 3d 1249, Counsel Stack Legal Research, https://law.counselstack.com/opinion/merrida-v-credit-acceptance-corp-alacivapp-2017.