T&T Materials, Inc. v. Mooney

4 S.W.3d 512, 68 Ark. App. 77, 1999 Ark. App. LEXIS 751
CourtCourt of Appeals of Arkansas
DecidedNovember 17, 1999
DocketCA 99-84
StatusPublished
Cited by4 cases

This text of 4 S.W.3d 512 (T&T Materials, Inc. v. Mooney) is published on Counsel Stack Legal Research, covering Court of Appeals of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
T&T Materials, Inc. v. Mooney, 4 S.W.3d 512, 68 Ark. App. 77, 1999 Ark. App. LEXIS 751 (Ark. Ct. App. 1999).

Opinion

Sam Bird, Judge.

Appellant, T&T Materials, Inc., brings this appeal contending that the Pulaski County Circuit Court erred in determining that venue was not proper in its court and that the Van Burén County Circuit Court erred in dismissing its complaint. We find no error, and we affirm.

On January 6, 1997, a consent judgment for $55,023.31, plus interest and costs, was entered in the- Crawford County Circuit Court in favor of T&T against appellee Willie Mooney. Mooney is a resident of Crawford County; T&T’s principal place of business is in Van Burén County. Subsequent to the entry of the judgment, appellant propounded interrogatories to Mooney, and Mooney filed his responses in Crawford County Circuit Court and forwarded a copy to T&T’s counsel in Pulaski County. In his answers to the interrogatories, Mooney stated that he was employed by appellee Northwest Paving Co., Inc. Upon receiving Mooney’s answers to the interrogatories, T&T forwarded a writ of garnishment and interrogatories to Northwest, and Northwest timely responded to the writ and answered the interrogatories, stating that Mooney was its employee, disclosing Mooney’s weekly wages, and setting forth the amounts of tax and retirement withholdings from Mooney’s weekly paycheck. A copy of Northwest’s answers to the interrogatories was also forwarded to T&T’s counsel in Pulaski County.

Thereafter, in an effort to obtain information he needed to prepare an appropriate order of delivery, T&T’s counsel wrote three letters, over a period of approximately two months, to counsel for Northwest, requesting that he provide specific information as to how much money was being withheld from Mooney’s weekly paycheck as a result of T&T’s garnishment. After receiving no response to his letters from Northwest’s counsel, T&T’s counsel presented a proposed order of disbursement to the Crawford County circuit judge, ordering Northwest to pay over to T&T “all garnished wages or other amounts” subject to the writ of garnishment. However, three days later, and before the proposed disbursement order was entered, Northwest filed an amended response to the writ of garnishment, stating that Mooney was not its employee, but that he was employed by Certified Systems, Inc., a temporary employment agency in Texas, and stating that Northwest was leasing its employees (including Mooney) from Certified Systems.

After receiving Northwest’s amended response to the interrogatories, T&T filed a complaint in Pulaski County, against Mooney and Northwest, contending that they had fraudulently concealed benefits paid to Mooney by Northwest and that they had fraudulently concealed Mooney’s assets. T&T alleged that Ark. Code Ann. § 16-60-113(b)(1987) vested jurisdiction and venue in Pulaski County. Northwest and Mooney filed a motion to dismiss the Pulaski County action, stating that Pulaski County Circuit Court lacked jurisdiction of the parties and the subject matter of the action, that venue was not proper in Pulaski County, and that the complaint failed to state a claim upon which relief could be granted. Before the Pulaski County Circuit Court ruled on Mooney and Northwest’s motion, the Crawford County Circuit Court, on motion of T&T, entered an order dismissing the garnishment proceeding against Northwest, without prejudice. Shortly thereafter, the Pulaski County Circuit Court granted Mooney and Northwest’s motion to dismiss T&T’s complaint for fraud, stating that Pulaski County was not the proper venue, and granted T&T’s oral request to transfer the case to Van Burén County Circuit Court.

Thereafter, Van Burén County Circuit Court dismissed T&T’s complaint, stating that it did not have subject-matter jurisdiction, and pursuant to Ark. R. Civ. P. 12(b)(6) for failure to state claims upon which relief can be granted. The circuit judge relied upon three statutes:

Ark. Code Ann. § 16-110-404 (1987): The garnishee shall, on the return day named in the writ, exhibit and file, under his oath full, direct, and true answers to all such allegations and interrogatories as may have been exhibited against him by the plaintiff.
Ark. Code Ann. § 16-110-405(a) (1987): If the garnishee files his answer to the interrogatories exhibited and the plaintiff deems the answers untrue or insufficient, he may deny the answers and cause his denial to be entered on the record.
Ark. Code Ann. § 16-110-405(b) (1987): The court or justice, if neither parties require a jury, shall proceed to try the facts put in issue by the answer of the garnishee and the denial of the plaintiff.

In an amended order, the Van Burén County circuit judge stated, “The Court finds that the Plaintiff’s allegations must be addressed to the Crawford County Circuit Court because that is the court in which the writ of garnishment originated.” It is from that order that the appellant brings this appeal asking this court to reverse the court’s order of dismissal and remand the case to the Van Burén County Circuit Court with instructions to transfer the case back to Pulaski County Circuit Court.

For its first point on appeal, T&T argues that the Crawford County Circuit Court erred in determining that T&T must pursue its fraud claims against Mooney and Northwest as part of the underlying Crawford County action where the judgment sought to be collected was entered and from which the writ of garnishment was issued. T&T argues that the garnishment statutes referred to by the Van Burén County Circuit Court are not applicable in this case because Northwest’s original answer to the writ of garnishment was that Mooney was its employee, an answer that T&T would not have disputed. In the alternative, T&T argues that even if it had filed an objection to Northwest’s amended answer (stating that Mooney was not its employee), T&T would have no remedy against Northwest because, in light of Northwest’s amended answer stating that Mooney is not its employee, “there never was any amount due from Northwest (as the garnishee) to Willie Mooney (defendant),” and the garnishment statutes do not give the trial court authority to enter judgment against a garnishee for funds that the garnishee never held. Thus, T&T contends that the only way it can recover funds that it would have garnished from Certified Systems (the employment agency in Texas), had Northwest and Mooney not given intentionally false and misleading answers, is through a separate cause of action, such as the fraud action it filed in Pulaski County Circuit Court.

T&T also argues that if this court agrees that it is entitled to maintain the fraud action separate and apart from the garnishment action, then this court must also agree that Pulaski County Circuit Court erred in finding that it did not have venue to hear the case. The basis of T&T’s fraud action is that Northwest is “finding other ways to pay Willie Mooney so as to preclude creditor attachment of those wages and is participating in the fraudulent concealment of Mooney’s assets.” Thus, T&T apparently asserts that Northwest’s amended answer, stating Mooney was not an employee and that it was not indebted to Mooney, is false and fraudulent. T&T argues that because Mooney’s and Northwest’s fraudulent answers were mailed to its attorney in Pulaski County, venue is proper in Pulaski County under Ark. Code Ann. 16-60-113(b), apparently on the theory that “part of a scheme to defraud ...

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4 S.W.3d 512, 68 Ark. App. 77, 1999 Ark. App. LEXIS 751, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tt-materials-inc-v-mooney-arkctapp-1999.