Posner v. Sheridan
Posner v. Sheridan
Dissenting Opinion
The majority says this case “is not one of jurisdiction.” I agree that this is a non-jurisdictional controversy; but, I must dissent from the majority’s disregard of that position and its incorrect treatment of the judgment as though it were entered by a court without competency to act. In the absence of a jurisdictional defect, there is no basis for disturbing the judgment duly entered against the defendant—Thomas Sheridan, who did not appear (initially or at any stage of this litigation) to challenge the claim for support or the validity of the judgment entered against him.
The majority proceeds on the assumption that the Family Division “inappropriately exercised jurisdiction.” The majority also assumes that this issue is one which appellant-garnishee (Mellon Trust) can raise in New Matter. Rule 1275(b) of the Pennsylvania Rules of Civil Procedure is specifically to the contrary. That Rule provides: “(b) The garnishee in his answer under 'new matter’ may include the defenses of the immunity or exemption of property, the defense that no property of the defendant was in the possession of the garnishee at the time of service of the attachment, or any defense or counterclaim which he could assert against the defendant if sued by him, but may not assert any defenses on behalf of the defendant against the plaintiff or otherwise attack the validity of the attachment” (Emphasis added.) Thus, under New Matter, the garnishee may raise only: (1) the immunity or exemption of the property; (2) the defense that no property of the defendant is in its possession; and (3) any defense or counterclaim it could raise against the defendant. Whether the Family Division “inappropriately exercised jurisdiction” is not one of the permissible issues under Rule 1275(b). It, therefore, cannot be asserted—as the garnishee here attempts—in New Matter.
The garnishee has not raised any permissible challenge to the validity of the judgment of the Family Division. The present controversy is not one involving satisfaction or execution of the judgment. The judgment of the Family Division, just as any judgment seeking to reach assets of a decedent’s estate or testamentary trust, may be satisfied by appropriate proceedings in the Orphans’ Court Division. Act of Aug. 16, 1951, P. L. 1163, art. Ill, §361, as amended, 26 P.S. 2686.361 (1964).
Dissenting Opinion
Dissenting Opinion
While recognizing that the 1968 Constitution intended to abolish the former system of separate courts and create a unified court of common pleas, the ma
As lawsuits became more complex and involved prior to the 1968 Amendment, courts were faced with more and more difficult decisions as to the appropriate jurisdiction between the lower courts. Recognizing this increasing problem, it was the intention of the framers of the new judiciary article to render academic these questions by vesting jurisdiction in a unified court of common pleas. Article Y, §5, Pennsylvania Constitution. As was stated by one of the members of the Constitutional Convention: “There have over the years been many conflicts between the orphans’ court and the common pleas as to who had jurisdiction. Then in many other courts there have been similar conflicts about jurisdiction. It is the present attempt to eliminate all of those conflicts.” Journal of the Constitutional Convention, Vol. II, Feb. 15, 1968, Delegate Braham, p. 852.
Secondly, I do not share the majority’s opinion that the selection of the Family Division as the forum to commence the lawsuit was so obviously erroneous, if indeed it was erroneous. In setting forth the areas of concern for each division of the new unified court of common pleas the Schedule to the Judiciary Article was not attempting to define theories of actions (e.g., assumpsit, trespass, etc.) nor did it base the classification upon the form of process (e.g., foreign attachment). Bather it was attempting to define the broad areas of the law to which each division was to direct its attention.
In any event, whether this was a clear mistake in the exercise of jurisdiction by the court below, or as I believe, in that gray area intended to be eliminated by the 1968 Amendment, the court did have jurisdiction and appellate courts should leave these problems to the internal management of the court below. An inappropriate exercise of jurisdiction by a division of the court of common pleas should not in and of itself pro
Upon finally reaching a consideration of the merits, the majority determines that the order of the court below is in violation of the Estates Act of 1947 and the Act of May 10, 1921. To rectify this alleged error, they have vacated the order of the court below, removed the matter from the original judge and remanded the case to the Civil Division of the Allegheny County Court of Common Pleas
Although the majority recognizes that the question before us is one of internal common pleas court administration and not one of jurisdiction, the majority nevertheless removes the cause from the Family Division and remands it to the Civil Division. Such action can only be justified if the original court acted without jurisdiction, which the majority concedes is not at issue. This contradiction between the majority’s assertions and their action mandates dissent.
While the majority states that the alleged mistake as to the merits was more important than their finding that it was improperly entertained in the Family Division, it leaves open whether the order to vacate could have been supported on their finding of an improper selection of forum alone. This is further compounded since the error on the merits is of the type (as I will discuss later in this opinion) that does not normally require the drastic remedy of vacating the order.
Section 17(b) of the Schedule to Judiciary Article provides:
“Until otherwise provided by rule of the court of common pleas, the court of common pleas shall exercise jurisdiction in the following matters through the family court division:
“ (i) Domestic Relations: Desertion or nonsupport of wives, children and indigent parents, including children born out of wedlock; proceedings, including habeas corpus, for custody of children; divorce and annulment and property matters relating thereto.
“ (iii) Adoptions and Delayed Birth Certificates.”
20 P.S. §301.12.
48 P.S. §136.
Act of December 2, 1968, P. L. 1142, No. 357, 17 P.S. §235.2 (Supp. 1972-73).
Opinion of the Court
Opinion by
Presently before us is an appeal from a decree of the Court of Common Pleas, Family Court Division, of Allegheny County, which directed the foreign attachment garnishee, Mellon Bank, to pay appellee the sum of $9165 from the principal and interest of a spendthrift trust. The question which this case presents is not one of jurisdiction but of internal common pleas court administration.
The cause arose in the following manner. In December 1968, Mary Posner, appellee, was granted a final decree of divorce from Thomas Sheridan by the Superior Court of the State of California. This judgment included a direction to Sheridan to pay appellee $235 monthly for the support of their two children. Sheridan failed to make payments and an arrearage allegedly accumulated in the amount of $9165 plus interest.
On January 29, 1970, Mrs. Posner filed a praecipe for a writ of foreign attachment and a complaint in equity against Sheridan and Mellon Bank. The bank was summoned as garnishee, because it is the trustee of a spendthrift trust fund created for Sheridan by the Will of his mother, Mary Harris Sheridan, a resident of Allegheny County at her death.
The complaint went unanswered and a default judgment was entered against Sheridan on March 30, 1970.
In accordance with Pa. R. C. P. 1271, a rule was served on the bank as garnishee to answer interroga
Under “New Matter” appellant asserted that the trust was under the jurisdiction of the Orphans’ Oourt Division and that the principal of the trust was immune from attachment.
The lower court entered a decree striking off the averments contained in the “New Matter” and directed the bank to pay the attaching creditor $9165 from the trust funds and to continue to pay $235 monthly until the principal and income of trust were exhausted.
The instant case, like any foreign attachment proceeding, contemplates two judicial determinations: first whether Sheridan owes his former wife anything;
The fact that Mrs. Posner seeks to reduce the California decree to a Pennsylvania judgment for execution purposes in no way detracts or subtracts from what is in essence an assumpsit action for debt.
While the 1968 Constitution had the felicitous result of abolishing the old system of separate courts and amalgamating them into a unified common pleas system, nothing in these new provisions permits plaintiffs to file complaints, or courts to docket them willy-nilly without regard to the appropriate division. In point of fact the language of the Schedule to the Judiciary Article establishes otherwise.
We reject, however, appellant’s notion that the mere presence of the testamentary spendthrift trust as the property sought to be attached automatically vests jurisdiction exclusively in the orphans’ division. The notion is novel and unsupportable in light of past cases in which common pleas court adjudicated the attempted garnishment of trusts in support of marital obligations without interference by this Court. See e.g., Clark v. Clark, 411 Pa. 251, 191 A. 2d 417 (1963) ; cf. Lippincott v. Lippincott, 349 Pa. 501, 37 A. 2d 741 (1944); Sproul-Bolton v. Sprowl-Bolton, 383 Pa. 85, 117 A. 2d 688 (1955) [Spendthrift trust attachment in aid of equity action for accounting].
We now turn to the substantive issue involved.
Originally it was the law of Pennsylvania that claims of a wife and/or child for support were no different from claims of other creditors, and therefore the interest of the beneficiary of a spendthrift trust could not be attached even on a claim of non-support. Board of Charities v. Lockard, 198 Pa. 572, 48 A. 496 (1901). This result was subsequently changed by statute and case law.
Two statutes support Mrs. Posner’s attempt to attach her former husband’s interest in the spendthrift trust. The Estates Act of 1947 provides: “Income of a trust subject to spendthrift or similar provisions shall nevertheless be liable for the support of anyone whom the income beneficiary shall be under a legal duty to support.” Act of April 24, 1947, P. L. 100, §12, 20 P.S. §301.12. [Emphasis supplied.]
By the Act of May 10, 1921, P. L. 434, §1, 48 P.S. §136, appellee can attach only 50 percent of the beneficial interest of a spendthrift trust but such attachment remains a lien and continuing levy against the trust until all payments are made.
By awarding appellee more than nine-tenths of the entire trust fund, the lower court overlooked the fact that Sheridan’s interest was limited to a present right to income and a future right to principal
The lower court cited the case of Morton v. Morton, 394 Da. 402, 147 A. 2d 150 (1959), for the general proposition that both principal and income of a trust are susceptible to support claims. The Morton case on its facts is easily distinguishable from the present situation and has no application. There, appellant-husband created an inter vivos spendthrift trust reserving to himself the income for life. He also retained corn
As can seen seen there are several possible approaches by which Mrs. Posner can recover these arrearages including securing a lien on the principal which would bind the trustees to pay the sums to her as they come due.
The decree is therefore vacated and the case remanded for further proceedings consonant with this opinion.
Tliis arrearage included amounts wliieli Slier I dan had been ordered to pay by the California court in May 1966.
Appellant’s brief is incorrect in its assertion that tbe period of trust was fifteen years. Our study of tbe will discloses that Mrs. Sheridan provided that the first one-third of the principal was to be paid to beneficiaries five years after her death [which occurred September 25, 1965] and the remaining two-thirds, ten years after her death.
The lower court resolved the “jurisdictional” issue by holding that it was a matter which “cannot be asserted by [the] garnishee under Pa. R. O. P. 1275(b), supra, and no further discussion is necessary”
We disagreed for as is pointed out in 2 Goodrieh-Amram, Standard Pennsylvania Practice, §1275 (b)—1 at 214 (1962), “To the extent that the exemption or immunity of the attached property is ‘jurisdictional’ or the defense that the garnishee has no property at the time of the service of the writ is ‘jurisdictional’, sub-division (b) [of Buie 1275] specifically provides that these defenses are to be raised by ‘new matter’ in the answers to the interrogatories.”
In its “new matter” appellant advanced four contentions: (1) that the trust is under the jurisdiction of the Orphans’ Oourt Division; (2) that the principal of the trust is immune from attachment without adjudication following an accounting; (S) that defendant, Thomas Sheridan, is presently entitled to receive only
The California decree establishes beyond cavil that certain money is due and owing to Mrs. Posner and no party nor court of this State can quibble with that fact. Volume 15, Standard Pennsylvania Practice, Oil. 72, §557 makes the following pertinent comment: “. . . a foreign decree for the support of children, to be entitled to recognition and enforcement in another state, must be a final judgment for a fixed sum, and if under the law of the foreign state such order is subject to modification at the discretion of the court, the order is not a final judgment which may be enforced in Pennsylvania. However, with regard to support payments already accrued, a foreign divorce decree providing for child support payment by the divorced husband is a final foreign judgment entitled to enforcement in Pennsylvania.” See also the opinion of the Court in Buswell v. Buswell, 377 Pa. 487, 105 A. 2d 608 (1954). Cf. Sistare v. Sistare, 218 U.S. 1 (1910), which held that where the court which originally entered judgment for alimony still retains jurisdiction to modify or cancel the award, there can nevertheless be an action brought in another state on such a judgment or decree, and in such second action the plaintiff has an absolute right to have the first judgment or decree accorded full faith and credit as to such sums as were due at the time the second action was brought. Thus we do not disturb the judgment entered against Sheridan by default.
“. . . foreign attachment is a form of process and not a type of action.” 2 Goodrieh-Amram, Standard Pennsylvania Practice, §1251-7. Its purpose is to first secure a lien on defendant’s goods in the hands of the garnishee and then to judicially determine what if anything is due from the defendant to the plaintiff. See Lieberman v. Hoffman, 2 Penny. 211 (1882). Piled with the praecipe for foreign attachment or within five days thereafter will be the complaint setting forth the cause of action and the ground for attachment. See Pa. R. O. P. 1265.
The complaint states that because Sheridan wrongfully refused to pay the court-ordered support, Mrs. Posner was forced to furnish necessities for the children out of her own estate. Of. Gessler v. Gessler, 181 Pa. Superior Ct. 357, 124 A. 2d 502 (1056).
Article V, §5 of our Constitution relevantly provides: “There shall be one court of Common Pleas for each judicial district . . . (b) having unlimited original jurisdiction in all cases except as
The Act of December 2, 1968, P. L. 1142, No. 357, 17 P.S. §235.2 provides for a civil division and a criminal division in Allegheny County in lieu of the trial division provided for in the Schedule. The ease at bar thus falls within the jurisdiction of the civil division.
Of. also Geasier v. Gessler, supra, which was an assumpsit action by a wife initiated by foreign attachment of the husband’s interest in two spendthrift trusts. The Superior Court affirmed the right of the Municipal Court of Philadelphia to try the matter.
The predeecessor to this statute, Act of June 7, 1917, P. L. 403, §19, 20 P.S. §243 [The WiUs Act of 1917, repealed as to all wills made after January 1, 1948] was limited to testamentary spendthrift trusts.
“The important feature [of the Act of 1921] is that it limits recovery to 50 per centum of the beneficiary’s income in the
Not to be forgotten is the fact that Sheridan became entitled to receive one-third of the corpus, payable on or after September 25, 1970. As such this sum would be subject to attachment.
See also Commonwealth ex rel. Stevenson v. Stevenson, 40 Del. Co. 51 (1952), where a husband created a spendthrift trust, reserving the life income to himself with the power to dispose of the corpus by will. The spendthrift clause was held void and the wife was allowed to reach the principal by attachment to satisfy an order for the support of children. In the instant ease the settlor and beneficiary are not the same person and that was the critical fact on which both these eases turned.
Concurring Opinion
Concurring Opinion by
I agree with the decision of the Court and join in its opinion except for the suggestion (it does not seem to be more than that) that exercise of its jurisdiction by the Court of Common Pleas through the wrong division of that court would, by itself, be cause for this Court to vacate a judgment of the court below. In my view, this would not be so.
Reference
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- Posner v. Sheridan, Appellant
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