Swiderski v. Victoria Bank & Trust Co.

706 S.W.2d 676, 1986 Tex. App. LEXIS 12171
CourtCourt of Appeals of Texas
DecidedFebruary 6, 1986
Docket13-85-190-CV
StatusPublished
Cited by11 cases

This text of 706 S.W.2d 676 (Swiderski v. Victoria Bank & Trust Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Swiderski v. Victoria Bank & Trust Co., 706 S.W.2d 676, 1986 Tex. App. LEXIS 12171 (Tex. Ct. App. 1986).

Opinion

OPINION

KENNEDY, Justice.

Appellant became a judgment debtor of appellee after defaulting on automobile loans. Appellee then successfully garnished funds held by garnishees, Cullen, Carsner & Seerden and Prudential Property & Casualty Insurance, to satisfy the outstanding debt. Appellant brings three points of error with regard to the writ of garnishment.

Appellee obtained a final judgment against appellant for $6,931.23 plus interest and costs, resulting from a suit brought when appellant defaulted on two automobile loans. Garnishee Seerden possessed a draft, payable to Paul and Lisa Swiderski in the amount of $29,995.00, which represented a settlement arising out of an accident involving the Swiderskis. Payment of the draft was subject to execution of Releases and an Order of Dismissal by the Swiderskis. The garnishees deposited $7,143.88 in the registry of the court, which the trial court awarded to appellee by writ of garnishment.

Appellant, by his first point of error, complains that the writ should have been dissolved since the trial court’s determination of the motion to vacate came ten days after appellant filed the motion, in violation of TEX.R.CIV.P. 664a. Appellant further complains, under point of error one, that the trial court erred in failing to enter judgment discharging the garnishees since appellee did not controvert the garnishees’ answer. Finally, in points of error two and three, appellant complains of trial court error in granting the writ of garnishment because there was no evidence that garnishees were indebted or in possession of property belonging to appellant. Appellant misconstrues the purpose and requirements of the rules governing garnishment.

Prior to 1977, a judgment debtor’s recourse in garnishment proceedings was to file a replevy bond, in which case the debt- or defendant in garnishment could raise any defense which the defendant in garnishment could make in such suit. See TEX.R.CIV.P. 664 (Vernon 1967). The re-plevy bond was double the amount of the plaintiff’s debt and conditioned for the payment of any judgment that may be rendered against the garnishee. Id. The Texas Supreme Court amended this rule in response to the U.S. Supreme Court’s decisions in Fuentes v. Shevin, 407 U.S. 67, 92 S.Ct. 1983, 32 L.Ed.2d 556 (1972) and North Georgia Finishing, Inc. v. Di-Chem, Inc., 419 U.S. 601, 95 S.Ct. 719, 42 L.Ed.2d 751 (1975). North Georgia Finishing dealt *678 with the constitutionality of a Georgia prejudgment garnishment statute which permitted “the defendant to dissolve the garnishment by filing a bond conditioned for the payment of any judgment that shall be rendered on said garnishment.” Id. at 603, 95 S.Ct. at 721. Specifically, the issue before the Court was whether the Georgia prejudgment garnishment provisions satisfied the Due Process Clause of the Fourteenth Amendment.

The U.S. Supreme Court in North Georgia Finishing, while reversing and remanding the Georgia Supreme Court’s holding that the statute was valid notwithstanding the failure to provide notice and hearing to the debtor, found:

There is no provision for an early hearing at which the creditor would be required to demonstrate at least probable cause for the garnishment. Indeed, it would appear that without the filing of a bond the defendant debtor’s challenge to the garnishment will not be entertained, whatever the grounds may be.

Id. at 607, 95 S.Ct. at 722. The rules governing prejudgment garnishment in Texas were strikingly similar to the Georgia statute. Consequently, in 1977, the Texas garnishment provisions were amended to conform to Fuentes and North Georgia Finishing. The addition of Rule 664a afforded the defendant debtor a prompt hearing and provided the procedures, burden of proof and the kind of proof to accompany the hearing.

It is important to note that the case at hand involves a postjudgment garnishment, whereas Fuentes and North Georgia Finishing concern prejudgment deprivation of property. 1 Likewise, TEX.R.CIV.P. 664 (Vernon 1967) governed the replevy of garnished goods “at any time before judgment.” TEX.R.CIV.P. 664 continues to allow for prejudgment replevy bonds, but no longer provides that the defendant debtor may make any defense which the defendant in garnishment could make in the suit. Rather, Rule 664a now provides for a hearing when the defendant debtor chooses to intervene in either a prejudgment or post-judgment garnishment proceeding.

A Rule 664a hearing is a distinct proceeding from the writ of garnishment proceeding between the garnishor and garnishee. “The filing of the motion (to vacate, dissolve or modify the writ of garnishment) shall stay any further proceedings under the writ, except for any orders concerning the care, preservation or sale of any perishable property, until a hearing is had, and the issue is determined.” TEX.R. CIV.P. 664a. The issue to be determined in a Rule 664a hearing is that “the plaintiff shall prove the grounds relied upon for its (the writ of garnishment’s) issuance.” Id; see Black Coral Investments v. Bank of the Southwest, 650 S.W.2d 135, 136 (Tex.App.—Houston [14th Dist.] 1983, writ ref’d n.r.e.); Huie-Clark Joint Venture v. American States Insurance Co., 629 S.W.2d 109, 110-111 (Tex.App.—Dallas 1981, writ ref’d n.r.e.). In a postjudgment writ of garnishment, a writ is issued if “a plaintiff has a valid, subsisting judgment and makes an affidavit stating that, within the plaintiff’s knowledge, the defendant does not possess property in Texas subject to execution sufficient to satisfy the judgment.” TEX.CIVIL PRACTICE AND REMEDIES CODE ANN. § 63.001(3) (Vernon 1986). 2

Therefore, at a Rule 664a hearing, the plaintiff does not have to prove that the garnishee is indebted to the defendant debtor as appellant contends. This is true for prejudgment as well as post-judgment writs of garnishment. When a defendant debtor seeks to dissolve a prejudgment writ of garnishment, the plaintiff *679 must prove the grounds relied upon for its issuance. A prejudgment writ of garnishment is issued if:

A plaintiff sues for a debt and makes an affidavit stating that:
(A) the debt is just, due, and unpaid;
(B) within the plaintiffs knowledge, the defendant does not possess property in Texas subject to execution sufficient to satisfy the debt; and
(C) the garnishment is not sought to injure the defendant or the garnishee.

TEX.CIVIL PRACTICE AND REMEDIES CODE ANN. § 63.001(2) (Vernon 1986).

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Bluebook (online)
706 S.W.2d 676, 1986 Tex. App. LEXIS 12171, Counsel Stack Legal Research, https://law.counselstack.com/opinion/swiderski-v-victoria-bank-trust-co-texapp-1986.