Wales v. City of Muscatine

4 Iowa 302
CourtSupreme Court of Iowa
DecidedJuly 1, 1856
StatusPublished
Cited by15 cases

This text of 4 Iowa 302 (Wales v. City of Muscatine) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wales v. City of Muscatine, 4 Iowa 302 (iowa 1856).

Opinion

Stockton, J.

When the case came up for decision in the District Court, on the answer of the garnishees, the defendant, Bennett, appeared by his attorney, and objected to any judgment against the city; and the District Court decided, as appears by the bill of exceptions, “that a municipal corporation could not be held as garnishee, and that no judgment could be rendered against the city in this cause.” It is the defendant, Bennett, who interposes the objection that the city cannot be held as garnishee. The city of Muscatine is not understood as making any opposition, to whatever judgment the court might pronounce, but was ready to pay fbe money due by it to Bennett, as the court should direct. We first inquire, whether Bennett had any right to make any such question to the court. He certainly had the right, to make any objection to the judgment against the [304]*304garnishee, which would, have gone to show that the indebtedness sought to be subjected, was exempt from execution or attachment, under section 1901 of the Code, as being due to him for his personal services. So, he might have shown that plaintiffs were entitled to no judgment against the garnishee, by reason of the satisfaction of the principal judgment, or any other defence of a like nature. But the exemption claimed for the city in this instance, was a privilege which the party garnished, alone could assert; it could not be set up for it, by another. The defendant in the execution is not entitled to interpose the objection, in the name of the city.

But the objection, whether made by the defendant Bennett, or by the party summoned as garnishee, we think is not a valid one. The question is whether a municipal corporation may be summoned as garnishee, under the statute of Iowa, and whether the indebtedness of the city of Muscatine to defendant, can be held to respond to plaintiff’s judgment. In Drake on Attachment, sec'. 497, it is held, that municipal corporations cannot be charged as garnishees, “the same principle being considered as applicable to them as to persons holding effects of defendants in legal capacities.” We are cited in support of this doctrine, to the case of Hawthorn v. The City of St. Louis, 11 Mo. 59, where it was held, that a public municipal corporation is not like a private corporation, liable to be garnished in Missouri, for a sum due to an officer of the corporation as a part of his salary. It has been the policy of some states to exempt the salaries of public officers from execution or attachment, as it is in our own, to protect from such process the earnings of the debtor for his personal services and those of his family. Code, § 1901. So in Arkansas, it has been decided that the state cannot be garnished for the salary of a public officer. McMekin v. The State, 4 English, 553.

It was held, in Bradley v. Town of Richmond, 6 Vermont, 121, that an action cannot be maintained against a town, as the trustee or garnishee of an absconding or absent debtor. This decision is placed by the court on the ground [305]*305of the statute of Yermont, which they say implies personal privileges and duties incident only to individuals, and inapplicable to aggregate corporations. The case of The Union Turnpike Road v. Jenkins, 2 Mass. 37, was under the statute of Massachusetts. The question was whether the property attached in the hands of the New England Marine Insurance Company, could be held to respond to the plaintiff’s judgment, or in other words, whether a corporation aggregate could be summoned as trustee, (or garnishee,) under the statute. The court held, that as the garnishee’s liability was. to be ascertained in all cases by his examination upon oath, one who is ineapable of disclosing in .such manner, cannot be held as trustee. In Newer v. O'Fallon, 18 Mo. 277, it was held, that in a suit against a creditor of a corporation, its treasurer, having its money in his hands, is not liable to garnishment. The corporation had directed its treasurer to pay a specific sum out of its funds, in his hands, to the defendant, in attachment, as a gratuity for the benefit of third parties. In which case it was held, that neither the corporation, nor its treasurer, were liable to the process of garnishment. Locke on Foreign Attachments, 47, says: Goods and debts, funds and dividends, cannot be attached in the hands of the Bank of England or the East India Company.” On the other hand, it has been held in Pennsylvania, in the case of Cramand v. The Bank of the United States, 1 Binney, 64, and Jackson v. Bank of United States, 10 Penn. 61, that the bank was liable to the process of garnishment, and that the funds in its hands might be subjected to the payment of the plaintiff’s claim.

~W e have endeavored to give all the authorities that have come under our observation, in which it has been held that corporations of any kind are not liable to be summoned as garnishees. The reasons given for the exemption claimed, are as numerous and various as the cases themselves, and no two of them agree in assigning the same reason. The distinction claimed to exist between private corporations and municipal corporations in respect to their liability as garnishees, as held in Hawthorn v. St. Louis, does not seem to [306]*306us to be founded in reason. Tbe argument- to show why-one should be exempt, applies with equal force to the other. That public municipal corporations should not be compelled to stand at the bar, and participate in controversies between debtor and creditor, is a view of the subject that we confess has not struck us very forcibly. In the cases cited from 2 Mass. 87, and 6 Vermont, 121, the reasons assigned for the exemption, that a civil political corporation cannot appear in court, and can neither answer under oath nor testify by proxy or agent, do not apply to those courts, nor in those states, in which the corporation may appear by attorney, or in which its answer may be taken and verified in the same manner as an answer in chancery. Much confusion of ideas may be avoided by bearing in mind that the corporation, as garnishee, is summoned to answer as a party, and not to testify as a witness. In Massachusetts and Vermont, the position of the garnishee has been likened to that of a witness, and it was held, that as an aggregate corporation was incapable of disclosing on oath, property in its possession could not be garnished. Cushing’s Trustee Process, § 111, 312. Nor do -we think that any difficulty connected with the question, is solved by holding that the right of a corporation to exemption from the process of garnishment, rests on the same principle as that of persons who are adjudged exempt as holding the property of the defendants in legal capacities. Drake on Attachment, 361, § 497. The force of the reasoning when applied to judicial and executive officers, or persons holding a fiduciary relation to the defendant, we can readily understand and appreciate. But we see no good or sufficient reason why , a municipal corporation, that can contract a debt for the construction of a public landing for steamboats, should not be held liable to be summoned as garnishee, nor why such an indebtedness should not be held to respond to the plaintiff’s judgment against the defendant. It did not arise out of any fiduciary relation between the city and Bennett, nor was it assumed by the city in any judicial or executive capacity. We are to presume that the city contracted, for .the work at the steamboat [307]

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Bluebook (online)
4 Iowa 302, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wales-v-city-of-muscatine-iowa-1856.