Salahub v. Montgomery Ward & Co.

599 P.2d 1210, 41 Or. App. 775, 1979 Ore. App. LEXIS 3175
CourtCourt of Appeals of Oregon
DecidedAugust 27, 1979
DocketA 7712 18550, CA 10925
StatusPublished
Cited by10 cases

This text of 599 P.2d 1210 (Salahub v. Montgomery Ward & Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Salahub v. Montgomery Ward & Co., 599 P.2d 1210, 41 Or. App. 775, 1979 Ore. App. LEXIS 3175 (Or. Ct. App. 1979).

Opinion

*777 CAMPBELL, J.

Plaintiff, whose bank account was garnished under a writ of garnishment issued pursuant to ORS 23.650 to 23.670, appeals a summary judgment for defendants denying her injunctive relief and damages, and ruling that the garnishment process did not violate her right to due process and equal protection under the 14th Amendment to the United States Constitution. We reverse and remand.

On June 9, 1976, defendant Montgomery Ward obtained a judgment against plaintiff. On October 6, 1977, using a form supplied by defendant Harris, doing business as Bob’s Messenger Service, Ward caused a writ of garnishment to be issued by the clerk of the district court for Multnomah County directed to the bank in Washington County where plaintiff maintained a checking account. Subsequently, on October 11, 1977, plaintiff’s bank account was garnished. Plaintiff received no notice of the garnishment from the defendants.

All of the funds in plaintiff’s account were exempt from garnishment under ORS 411.760 (assistance grants) and ORS 657.855 (unemployment compensation). The informal notice of garnishment sent to plaintiff by her bank did not inform her of the availability of any exemptions or the process by which she could obtain an exemption. After obtaining legal advice, plaintiff filed a claim for exemption on November 28, 1977. On December 5, 1977, the court allowed the exemption claim. On January 13, 1978, defendant Montgomery Ward returned plaintiff’s money to her.

Plaintiff filed suit against the defendants praying for: a declaratory judgment that ORS 23.650 to 23.670 require that a writ of garnishment be accompanied by notice to the judgment debtor of the garnishment and exemption rights as required by ORS 29.178; in the alternative, a declaration that ORS 23.650 to 23.670 *778 violate the Due Process Clause and Equal Protection Clause of the 14th Amendment to the United States Constitution; a permanent injunction restraining defendants from issuing writs of garnishment not containing the notice provided for in ORS 29.178; and $42 general damages from defendants to reimburse plaintiff for the bank’s service charges, as well as $5,000 special damages for injury to plaintiff’s credit. In an opinion letter, the trial court ruled that the notice provisions of ORS 29.178 do not apply to the writ of garnishment procedure and that no such notice is constitutionally required. The court thus refused to hold defendants liable for monetary damages.

In 1977, the Oregon Legislature created a new procedure, the writ of garnishment, by which a judgment creditor may garnish a judgment debtor’s property. Oregon Laws 1977, ch 613, codified at ORS 23.650-23.670. 1 This procedure, under which plaintiff’s bank account was garnished, does not expressly require that the judgment debtor be notified that the *781 garnishment has occurred, that certain property and funds are exempt from garnishment under state or federal law, or that there is a summary procedure for adjudicating a judgment debtor’s claim of exemption. 2

At the same session, as Sections 1 and 2 of Oregon Laws, 1977, ch 623, now ORS 29.178, the legislature added the following provisions to the laws governing the writ of attachment.

"(1) Following execution by the sheriff of any writ pursuant to ORS 29.170 or 29.175 other than a wage or salary garnishment, the sheriff shall promptly mail or deliver the following to the noncorporate judgment debtor at his last-known address:
"(a) A copy of the writ;
"(b) A copy of the certificate delivered to the county clerk pursuant to subsection (1) of ORS 29.170, if any;
"(c) A copy of the notice delivered pursuant to subsection (3) of ORS 29.170 or subsection (1) of ORS 29.175, if any; and
"(d) The notice described in subsection (2) of this section.
"(2) The notice to the judgment debtor shall contain:
"(a) A statement that certain property of the judgment debtor has been or may have been levied upon;
"(b) If the sheriff has executed the writ by taking property into his custody, a list of the property so taken;
"(c) A list of all property and funds declared exempt under state or federal law;
"(d) An explanation of the procedure by which the judgment debtor may claim an exemption;
"(e) A statement that the forms necessary to claim an exemption are available at the county courthouse at no cost to the judgment debtor; and
"(f) A statement that if the judgment debtor has any questions, he should consult an attorney.
"(3) Notwithstanding subsection (1) of this section, if a writ is served on a bank, trust company or *782 savings and loan association, as garnishee, the sheriff shall deliver the copies and notice required by subsection (1) of this section to such garnishee. If the garnishee has property belonging to the judgment debtor, the garnishee shall promptly mail or deliver the copies and notice to the judgment debtor.
"(4) The sheriff may meet the requirements of subsection (1) of this section by mailing the documents to the last-known address of the judgment debtor as provided by the judgment creditor.

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Cite This Page — Counsel Stack

Bluebook (online)
599 P.2d 1210, 41 Or. App. 775, 1979 Ore. App. LEXIS 3175, Counsel Stack Legal Research, https://law.counselstack.com/opinion/salahub-v-montgomery-ward-co-orctapp-1979.