Tower Credit, Inc. v. Eric E. McGee

Louisiana Court of Appeal·Decided September 6, 2024·No. 2023CA0787·Unknown

Opinion

STATE OF LOUISIANA

COURT OF APPEAL

FIRST CIRCUIT

ERIC E. MCGEE

Judgment Rendered:

Appealed from the

City Court of Baton Rouge In and for the Parish of East Baton Rouge State of Louisiana

Docket No. 22- 01560

The Honorable Kelli Terrell Temple, Judge Presiding

Richard D. Bankston Attorney for Plaintiff/Appellant, Baton Rouge, Louisiana Tower Credit, Inc.

Stephen C. Fortson Attorneys for Defendant/Appellee, Mary Catherine Joiner Petroleum Service Corporation Rachel S. Day Parent, Inc. Shreveport, Louisiana

BEFORE: McCLENDON, HESTER, AND MILLER, JJ.

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MILLER, J.

This matter is before us on appeal by plaintiff, Tower Credit, Inc., from a judgment of the trial court denying its motion for judgment pro confesso. For the

reasons that follow, we affirm.

FACTS AND PROCEDURAL HISTORY

On April 19, 2022, Tower Credit, Inc. (" Tower") filed suit on a promissory note in the City Court of Baton Rouge against Eric E. McGee seeking judgment in its favor, and against McGee, for "$ 8, 436. 92 together with interest from the date of

judicial demand at the rate of 28. 94% per year...." McGee failed to respond to

Tower' s suit, and Tower obtained a default judgment against him on June 29, 2022.

Thereafter, Tower filed a petition for garnishment, naming PSC Group LLC (" PSC")

as garnishee.'

The trial court signed an order directing that PSC be cited as garnishee

and ordering PSC to answer, under oath and in writing, garnishment interrogatories .2 On January 19, 2023, Tower filed a " Motion for Judgment Pro Confesso"

contending that PSC was served with garnishment interrogatories on September 23, 2022, and that PSC failed to answer the interrogatories within thirty days of service. Upon PSC' s failure to file answers to the interrogatories as required by law, Tower requested that PSC be ordered to appear and show cause why judgment should not be entered against it in the amount of the default judgment rendered in the suit. The rule to show cause was initially set for March 29, 2023.

On March 28, 2023, after service of the pro confesso motion was made on

PSC, but before the date of the original hearing, PSC filed responses to the garnishment interrogatories. The answers established that PSC was not indebted to

We note that while " PSC Group LLC" was named as garnishee, " Petroleum Service Corporation Parent, Inc." ultimately responded in the garnishment proceedings and is the appellee herein.

2The order, prepared by the garnishor, further required that the sum of $15. 00 be deposited with the Clerk of Court pursuant to La. R.S. 13: 3927.

the defendant; that the defendant was no longer employed by PSC; and that at the time that defendant left its employ, PSC had knowledge of eight other garnishments against the defendant' s wages. Thereafter, on March 29, 2023, counsel for Tower

and PSC appeared before the trial court, who reassigned the matter to May 3, 2023, when it was ultimately heard.

At the hearing on the motion for judgment pro confesso, counsel for PSC contended that PSC sufficiently rebutted the prima facie case established by its failure to timely answer the garnishment interrogatories by the filing of its interrogatory answers into the record on March 28, 2023. Counsel for PSC

attempted to support its interrogatory answers by introducing copies of both Mr. McGee' s pay stubs as well as evidence of the other garnishment proceedings in place against Mr. McGee. Counsel for Tower argued that the late filing of the interrogatory answers does not relieve PSC of the liability created by the primafacie case and that any evidence to rebut the prima facie case had to be produced through witnesses at the hearing. The trial court did not allow introduction of the additional evidence because PSC did not have a witness present to authenticate same. However, the trial court denied the motion for judgment pro confesso and ordered

PSC to pay attorney fees in the amount of $400.00. On May 18, 2023, the trial court signed a judgment in conformance with its ruling. Tower filed the instant appeal.

In its sole assignment of error on appeal, Tower contends that the trial court erred in denying its motion for judgment pro confesso when PSC introduced no

evidence at the hearing to controvert the prima facie case created by La. C. C.P. art. 2413.

DISCUSSION

A garnishment proceeding is nothing more than a streamlined legal process for obtaining the seizure of property of a judgment debtor in the hands of a third party. Tower Credit, Inc. v. Ca enter, 2001- 2875 ( La. 9/ 4/ 02), 825 So. 2d 1125,

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1127. Louisiana Code of Civil Procedure articles 2411 through 2417 govern garnishment proceedings in general. Garnishment of a debtor' s wages is a procedure specifically governed by La. R. S. 13: 3921, et seq., along with the general provisions found in the Code of Civil Procedure. Dads BRI, L.L.C. v. Conner, 2022- 0141 ( La.

App. 1St Cir. 9/ 16/ 22), 352 So. 3d 1012, 1014. At its functional essence, garnishment is the seizure of property in the hands of a third party. See 2 La. Prac. Civ. Forms § 11: 1, Nature of the wit of garnishment, citing Ascension Credit Union v. Babin, 2014- 1653 ( La. App. 1st Cir. 11/ 6/ 15), 183 So. 3d 544 and McMillon v. European

Service, Inc., 52, 701 ( La. App. 2nd Cir. 5/ 22/ 19), 275 So. 3d 375, 378.

Louisiana Code of Civil Procedure article 2411, et seq. and La. R. S. 13: 3921, et seq. must be considered supportive of each other. Otherwise, the wage

garnishment proceedings could be ignored by obtaining a judgment under codal provisions thereby precluding the garnishee from seeking relief under the statutory provisions creating his liability in the first instance. Accordingly, it has been repeatedly held that where an employer fails to timely answer wage garnishment interrogatories, a default judgment may be rendered against him pursuant to La. C. C. P. art. 2413, but the court has discretion thereafter to reopen the case pursuant to La. R.S. 13: 3923. Beneficial Financial Company of Louisiana v. Haviland, 411

So. 2d 1102, 1105 ( La. App. 0 Cir.), writ denied, 415 So. 2d 942 ( La. 1982); Tower Credit Inc. v. Williams, 2022- 0106 ( La. App. 1St Cir. 9/ 16/ 22), 352 So. 3d 1029, 1037, writ granted, judgment vacated in part, 2022- 01556 ( La. 2/ 7/ 23), 354 So. 3d

659; Dad' s BRI, L.L.C. v. Harmon, 2022- 0141 ( La. App. 1St Cir. 9/ 16/ 22), 352 So. 3d 1012; Houma Mortgage & Loan, Inc. v. Marshall, 94- 0728 ( La. App. 1st Cir. 11/ 9/ 95), 664 So. 2d 1199; Zurich Insurance Company v. Harmon, 95- 0297 ( La.

App. 1st Cir. 10/ 6/ 95), 671 So. 2d 383. 3

3Louisiana Revised Statute 13: 3921 was amended by La. Acts 2022, No. 265, § 2, effective August 1, 2022, to include Section ( B), which provides that " Nothing in this Section is meant to affect judgments rendered pursuant to Code of Civil Procedure Article 2413." Here, the judgment

Service upon the garnishee of the petition, citation, and interrogatories

operates to seize any property of, or credit due, the judgment debtor held by the garnishee at the moment of service, though the amount and kind of such property

will not be known until the garnishee answers. Carpenter, 825 So. 2d at 1128; also

see La. C. C. P. art. 2411( B). 4 It is the garnishee' s duty to answer all proper interrogatories and to make all proper disclosures concerning property of the debtor in its possession. Houma Mortgage & Loan, Inc. v. Marshall, 94- 0728 ( La. App. 1 St Cir. 11/ 9/ 95), 664 So. 2d 1199, 1204; Wynnco Construction, LLC v. Bergeron, g

2013- 0250 ( La. App. 1St Cir. 11/ 4/ 13), 136 So. 3d 823, 825; and La. C. C. P. art.

2411( A). The garnishee shall file his sworn answers to the interrogatories within

thirty days from the date of service. La. C. C.P. art. 2412( D). However, up until the time the rule is heard, the court may permit the garnishee to file his answers in an attempt to rebut the judgment creditor' s prima facie case. Houma

Mortgage & Loan, Inc., 664 So. 2d at 1205, citing Commercial Securities Company

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