In this case the Court decided that a garnishment issued on the debtor’s wages would be valid even though the debtor moved to another state.

Here, a judgment was entered against the debtor in Kentucky.  At the time of entry of that judgment, the debtor resided in Kentucky.

Thereafter, debtor moved to North Carolina. After entry of the judgment, garnishments issued against Lorrillard, Inc., where the debtor was employed.

When debtor moved to North Carolina, he was still employed by Lorrillard, and Lorrillard continued to honor the garnishments. The debtor brought two separate actions arguing that the garnishments were not valid as to the wages earned in North Carolina.

The Court held that since the defendant had been personally served with the suit in Kentucky, once the judgment was entered, there was no longer any reason to have personal jurisdiction over the debtor.

A garnishment is considered to be an ancillary proceeding which does not require the debtor’s personal appearance. Otis Smith v. Lorrillard, Inc. et al., (U.S. Court of Appeals, 4th Circuit, No. 90-2468).

EDITOR’S COMMENT

Generally, a judgment must be obtained in the state where the debtor resides or conducts business. Once judgment is entered, however, if the debtor relocates to another state, garnishments may issue from the original judgment without the necessity of starting a new suit in the next state.

Author: Charles R. Harroun, Attorney at Law