Spatz Furniture Corp. v. Lee Letter Service, Inc.

52 Misc. 2d 291, 276 N.Y.S.2d 219, 1966 N.Y. Misc. LEXIS 1192
CourtCivil Court of the City of New York
DecidedDecember 28, 1966
StatusPublished
Cited by1 cases

This text of 52 Misc. 2d 291 (Spatz Furniture Corp. v. Lee Letter Service, Inc.) is published on Counsel Stack Legal Research, covering Civil Court of the City of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Spatz Furniture Corp. v. Lee Letter Service, Inc., 52 Misc. 2d 291, 276 N.Y.S.2d 219, 1966 N.Y. Misc. LEXIS 1192 (N.Y. Super. Ct. 1966).

Opinion

Patrick J. Picariello, J.

Special proceeding instituted by-plaintiff (judgment creditor) under CPLR 5231 to recover the sum of $530.51 predicated upon defendant’s (judgment debtor’s corporate employer’s) failure to honor an income execution.

Defendant’s answer consists of a general denial and includes a counterclaim for $500 ‘1 because of abusive (sic) process engaged herewith by the plaintiff ’ ’.

After trial and upon the evidence, the court finds the following facts:

A judgment for $491.15 was obtained by the plaintiff against the judgment debtor on April 8,1964. On April 11,1964, a copy of the subject income execution was served on the judgment debtor (CPLR 5231, subd. [a]). More than 20 days thereafter and on May 4, 1964, a copy of the subject income execution was served on the corporate defendant (CPLR 5231, subd. [d]) which, at that time, was judgment debtor’s employer. This service was improperly made (CPLR art. 3).

At the time of said service the defendant was deducting $4 per week under an unsatisfied income execution issued on behalf of a prior judgment creditor, an amount less than 10% of the judgment debtor’s gross weekly earnings. This sum of $4 was arrived at by agreement between the defendant and the marshal to whom said deductions were being forwarded. The unpaid balance on this prior income execution at the time of the service of the subject income execution, as aforesaid, was $125.02.

Defendant continued to make the $4 deduction until the prior income execution was fully satisfied (Aug. 25, 1965). On September 15, 1965 the defendant mailed a check for $4 to the Marshal in the instant proceeding, as payment on account of the subject income execution. On or about December 1, 1965 and December 8, 1965 two payments, each in the sum of $4, were received by the Marshal on account of the subject execution. These two payments were made by defendant’s check, made payable to the judgment debtor and indorsed by him to the Marshal. Upon failure of the defendant to continue making payments, the instant proceeding was initiated. The court finds that the judgment debtor’s gross earnings from May 6, 1964 to the time he severed his employment relationship with the defendant in June, 1966, were approximately $7,012.21. In [293]*293arriving at this finding, the court has considered only gross weekly earnings of $30 or more.

By order of this court dated October 7, 1966, the plaintiff was given leave to amend its complaint so as to demand recovery in the sum of $530.51, which represents the judgment of $491.15 recovered against the judgment debtor (the amount reflected in the income execution) plus costs and disbursements and including Marshal’s fee of $33.36.

There is no doubt but that, had the defendant begun to deduct 10% from the judgment debtor’s weekly salary at the time it was served with the subject income execution on May 4, 1964 (albeit such service was found to have been defective) in compliance with the mandate of the prior income execution and, after the same had been fully satisfied, had it continued to make the same deduction on the subject income execution, an amount sufficient to satisfy the latter would have been realized by the time the judgment debtor had severed his employment with the defendant.

The defendant resists plaintiff’s complaint on the grounds that (1) the court never had jurisdiction of the corporate defendant in this proceeding because of the defective and void service of the income execution; (2) defendant did not intend to cure or waive the defective service by making the $4 payment to the Marshal in the instant proceeding on September 15, 1965 ; (3) the income execution which ultimately came into possession of corporate defendant’s president did not cure or waive the defective service; (4) the propriety of the service of the income execution may be challenged at any stage in this proceeding; (5) plaintiff is estopped from claiming more than 10% of the judgment debtor’s gross earnings from September 15, 1965 to the termination date of his employment (said earnings having been stipulated to have been $2,314.47 for that period); (6) an agreement by the Marshal in the instant proceeding that not more than $4 should be deducted from the judgment debtor’s gross weekly wage in order to satisfy the prior income execution and consequent estoppel of plaintiff to claim that it was wrong for the defendant not to have deducted 10% of judgment debtor’s gross weekly wage from May 4,1964 to September 15,1965 and (7) the acceptance of the three $4 checks {supra) without objection precludes the plaintiff from recovering the sum sought herein.

A consideration of defendant’s points (1), (2), (3) and (4) follows:

The failure of the plaintiff properly to serve the defendant with the subject income execution constituted new matter that tended to defeat plaintiff’s claim, as the same was reflected in its [294]*294complaint, and should have been set forth in defendant’s answer. The defective service constituted a fact which was collateral to the facts upon which plaintiff’s claim was predicated. The nature of this defense is such that it cannot be raised by a mere general denial since the effect of not pleading the same would be to take the plaintiff by surprise. CPLR 3018 (subd. [b]) makes mandatory the pleading of any matter that ‘1 would be likely to take the adverse party by surprise or would raise issues of fact not appearing on the face of a prior pleading ’ ’. Having thus failed to plead this defense affirmatively, the defendant is deemed to have waived it. Moreover, the defendant, by its conduct subsequent to the defective service of the income execution, is estopped from raising the issue. Defendant’s president, in an examination before trial, admitted that the subject income execution ultimately came into his possession directly after the defective service. It also made a payment of $4 on the subject income execution to the Marshal on September 1, 1965 (more than 15 months after the defective service, as aforesaid, and two weeks after the prior income execution had been fully satisfied) ; and, finally, by acknowledging the receipt of the subject income execution in a reply to an inquiry addressed to it by the Marshal dated June 26, 1964 anent the then present status of the subject income execution whereon appears defendant’s legend, still has not completed paying garnishee before yours ’ ’.

Defendant further contends that it had not intended to waive the aforesaid defective service. The court does not concern itself with defendant’s alleged intention, but rather with the result of the prejudice resulting to the plaintiff by defendant’s failure to plead the defense and by its conduct, which lulled the plaintiff into believing that its income execution would be honored. Clearly, and in this court’s opinion, defendant is precluded from raising the issue of defective service of the income execution at this late date. The case cited by the defendant (Clark v. Fifty Seventh Madison Corp., 13 A D 2d 693) in support of its contention (lack of jurisdiction because of defective service of process on the corporate defendant) is easily distinguishable. The court there held that process which was defectively served on a corporate defendant could not give the court jurisdiction over the corporate defendant even though said process ultimately and admittedly came into the possession of one of the corporate defendant’s officers.

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Bluebook (online)
52 Misc. 2d 291, 276 N.Y.S.2d 219, 1966 N.Y. Misc. LEXIS 1192, Counsel Stack Legal Research, https://law.counselstack.com/opinion/spatz-furniture-corp-v-lee-letter-service-inc-nycivct-1966.