Garnishment

G

Definition and Nature

Garnishment is a species of attachment used to reach credits or funds belonging to the judgment debtor that are held by a third person, known as the garnishee. It is an attachment by which the plaintiff seeks to subject the defendant's claim or property in the hands of a third person. Garnishment is considered a forced novation through the substitution of creditors. It operates as an attachment, creating a lien on the property and bringing it into custodia legis, meaning it is under the court's sole control. It is essentially a freeze order similar to attachment.

Purpose of Garnishment

The primary purpose of garnishment is to allow the judgment creditor to obtain satisfaction of their claim by reaching funds or property of the judgment debtor that are in the possession or control of a third party.

Property Subject to Garnishment

Garnishment is applicable to credits belonging to the judgment debtor that are owed by or in the possession of a third person. This includes funds or property held by the garnishee on behalf of the judgment debtor.

Property Not Subject to Garnishment

Generally, public funds are exempt from garnishment. Courts do not possess the power to garnish government deposits or those of its instrumentalities to satisfy a judgment, even if the government has given implied consent to be sued. This exemption extends to money belonging to public officers held by a disbursing officer, as it remains public funds. However, entities with a personality distinct from the government, such as public corporations that can sue and be sued, have funds that are not exempt from garnishment.

Jurisdiction Over Garnishee

Jurisdiction over the garnishee is obtained not by serving summons, but by service of the writ of garnishment. The garnishee does not need to be impleaded as a party to the main case. Service of the writ makes the garnishee a 'virtual party' or 'forced intervenor', subjecting them to the court's orders for the satisfaction of the judgment.

Grounds to Lift Garnishment

A garnishment order may be lifted based on several grounds:

• The party whose accounts were garnished has posted a counter-bond or cash deposit.
• The order was improperly or irregularly issued, or the supporting affidavit/bond is defective.
• The attached property is exempt from execution and thus from preliminary attachment/garnishment.
• The judgment is rendered against the attaching creditor.
• Note that partial execution of the judgment is not a ground for discharge. If attachment is excessive, the remedy is partial discharge, not total discharge and substitution of property.

Release of Garnishment

Garnished funds or attached property may be released to the attaching party after a judgment in their favor is obtained. The garnishee or attaching officer cannot release the property from custodia legis before judgment promulgation. Once judicially compelled to pay the judgment amount from the debtor's funds, the garnishee is released from further responsibility over that amount after delivering it to the sheriff.