Walker v. Townsend

127 So. 2d 224, 1961 La. App. LEXIS 1779
CourtLouisiana Court of Appeal
DecidedJanuary 30, 1961
DocketNo. 39
StatusPublished
Cited by4 cases

This text of 127 So. 2d 224 (Walker v. Townsend) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Walker v. Townsend, 127 So. 2d 224, 1961 La. App. LEXIS 1779 (La. Ct. App. 1961).

Opinion

HOOD, Judge.

Plaintiffs, J. H. Walker, Jr., and Thelma C. Walker, as judgment creditors of Roy E. Townsend, instituted garnishment proceedings against “Danny Bradley and/or Danny Bradley doing business as Arthur Murray School of Dance.” Citation was issued and interrogatories were propounded to the garnishee as he was named in the petition. In his answer to the interrogatories the garnishee stated that “Danny Bradley” is his professional name and not his legal name. He further stated that he was not doing business as Arthur Murray School of Dance, that he was not the employer of Townsend, that he was not personally indebted to Townsend, and that he did not have any effects or assets of said defendant. The garnishee then stated in his answer that “inasmuch as he is not the employer as such, personally, of defendant Townsend,” the interrogatories must be answered in the negative. The affidavit attached to the answer was signed “Danny Bradley,” being the name by which the garnishee was cited and served.

Plaintiff then filed a rule to traverse the answers of the garnishee on the grounds that the answers were false and evasive and did not make a full disclosure as required by law. On the trial of this rule, the garnishee stated that his legal name is “Danny Brooks McElveen,” and that “Danny Bradley” is his professional name. He further testified that he was not doing business as Arthur Murray School of Dance, but that he is and has been the president and general manager of a Louisiana corporation bearing the name “Arthur Murray School of Dancing of Alexandria, Louisiana, Inc.,” and that defendant Townsend was an employee of the corporation at the time the answers to the interrogatories were filed. He further testified that he personally holds the franchise from the Arthur Murray Studios in New York, which franchise is necessary for the use of the name “Arthur Murray” in connection with the business conducted in Alexandria, Louisiana, but that the business was operated by the corporation during the entire time Tpwnsend was employed.

Mr. J. Lee Moak, who operates a bookkeeping and tax service and keeps the accounts of the Arthur Murray School of Dancing of Alexandria, Louisiana, Inc., testified that the corporation runs the business and pays all employees, that Townsend is and was an employee of the corporation, that he has been paid by check from the corporation every week, that the garnishee is the owner of seven or eight of the twelve shares of stock in that corporation, and that two other persons own the remaining shares of stock. The evidence shows that all payments on the franchise are made by the corporation, although, as previously stated, the franchise actually belongs to Bradley (or McElveen), the garnishee herein.

The trial judge concluded originally that the answers filed by the garnishee were evasive and insufficient, and that judgment should be rendered in favor of plaintiffs condemning the garnishee to pay to plaintiffs a portion of Townsend’s wages, as provided in Article 644 of the Code of Practice. In response to an application for rehearing filed by 'the garnishee, however, the trial judge recalled and set aside its former ruling, and thereupon rendered judgment in favor of the garnishee and against plaintiffs, rejecting the demands of said plaintiffs as against the garnishee at their costs. From this judgment plaintiffs have appealed.

Plaintiffs contend that in rendering judgment rejecting their demands against the garnishee the trial judge erred (1) in holding that the garnishee was not the employer of Townsend, (2) in holding that the answer filed by the garnishee was a sufficient compliance with the law, since the answer was false and evasive and the garnishee did not make a full disclosure of the facts relating to Townsend’s employment, and (3) in holding that the answer to the interrogatories propounded to the garnishee was properly verified, although the garnishee signed his professional name rather [226]*226than his legal name to the affidavit affixed to such answer.

The only witnesses who testified were the garnishee, Bradley, and the bookkeeper or accountant for the corporation, Mr. Moak, both of whom testified that the dancing school was operated by the corporation, that Townsend was an employee of and was paid by the corporation, and that Bradley did not own or operate the business and did not employ Townsend. The evidence establishes that payments by the corporation of salaries, ultilities and rent are made by check, on each of which checks is imprinted the name “Arthur Murray School of Dancing of Alexandria, La., Inc.” Although Bradley is the principal stockholder in the corporation, the evidence shows that he does not own all of the stock, and there is nothing in the record which would justify a conclusion that the corporation was wholly owned by Bradley or that it was an “alter ego” for the garnishee.

The trial judge concluded that Townsend was an employee of the corporation, and that he was not employed by Bradley (or McElveen). In our opinion the evidence supports that conclusion.

The contention of plaintiffs that they are entitled to judgment against the garnishee for the full amount claimed, on the ground that the answers filed by the garnishee to the interrogatories were evasive and did not make a full disclosure of the facts, is based on the provisions of Articles 262 and 263 of the Code of Practice, and the decisions rendered in Wagner v. Tarrant, 1929, 11 La.App. 610, 124 So. 614; Swift & Co. v. Centerville Co., 1926, 161 La. 183, 108 So. 408, and Rea v. Dow Motor Company, La.App.1948, 36 So.2d 750.

The articles of the Code of Practice on which plaintiffs rely provide:

“262. Answer of garnishee — Answers to interrogatories. — The garnishee who has been cited in a suit, must put in his answer within the usual delay, declaring in the same, fairly and truly, what property belonging to the defendant he has in his possession, by whatever title he may possess the same, as well as what sums he may owe to such defendant, whether the same be due or not yet due, and if interrogated on facts and articles, he must answer under oath, clearly and categorically, each question put to him touching such matter.”
“263. Failure to answer interrogatories — Effect.—If the garnishee, to whom interrogatories have been put, refuse or neglect to answer the same under oath in the delay of the law, such refusal or neglect shall be considered as a confession of his having in his hands property belonging to the debtor, sufficient to satisfy the demand made against such debtor, and judgment shall be rendered against him for the amount claimed by the defendant, with interest and costs.”

In Wagner v. Tarrant, supra, garnishment proceedings were instituted against the Warren Bank and Trust Co. The bank answered that it had no funds belonging to the judgment debtor, Robert Hayne Tar-rant. On a rule to traverse, however, it admitted that it had funds deposited to the account of “Robert H. Tarrant, agent.” The Orleans Court of Appeal held that the funds in that account belonged to the judgment debtor and that the garnishee had failed to make a full disclosure. Accordingly, it affirmed the judgment of the lower court condemning the garnishee to pay to plaintiff the amount of the funds in that account, those funds being substantially less than the amount of the judgment. We do not consider Wagner v.

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Bluebook (online)
127 So. 2d 224, 1961 La. App. LEXIS 1779, Counsel Stack Legal Research, https://law.counselstack.com/opinion/walker-v-townsend-lactapp-1961.