A garnishment is a method of collecting a judgment. Typically, when we think of garnishments, we think of “wage” garnishments. But, garnishments can also be used by a judgment creditor to seize any funds owed by a party (the garnishee) to the judgment debtor. To encourage prompt and accurate response, the law allowing garnishments includes a penalty. If the person receiving the garnishment fails to respond, the person is liable for the full amount of the judgment.
Because of the unfairness to the garnishee, the law includes many provisions intended to protect the garnishee. In Little v. American National Property & Casualty Company, w2009-01798-COA-R3-CV (Sept. 22, 2010), the Tennessee Court of Appeals discussed those procedures. Ultimately, the Court held that the garnishee was not liable for the debt because it had not been properly served.
The facts showed that the garnishment was served on the garnishee – a Missouri insurance corporation – at the office in Tennessee of an independent agent. It was accepted by a “front-desk” person.
THE MORAL OF THIS STORY: Make sure that the “front-desk” people know that they are not authorized to accept any legal document.
No comments:
Post a Comment