Maxwell v. Bank of New Richmond
Maxwell v. Bank of New Richmond
Opinion of the Court
The judgment appealed from must be reversed, for two’reasons: First, the election to take judgment against the garnishee for the amount of plaintiffs’ claim precluded them from subsequently following the property or the proceeds thereof; and second, the equitable lien in the garnishee proceedings not being continued in any way pending the appeal, or the judgment appealed from stayed, or the garnishee restrained from executing such judgment, it protected the garnishee defendant as to anything he did pursuant thereto before it was reversed.
Time, the service of the garnishee process operated as an equitable levy upon the property in the hands of Simonton belonging to the defendant. Globe Milling Co. v. Boynton, 87 Wis. 619; Morawetz v. Sun Ins. Office, 96 Wis. 175. But it by no means follows that under all circumstances the plaintiffs could follow either the property or the proceeds thereof into the hands of other parties. A bona fide purchaser of the property without notice of the equitable lien would take it discharged of the incumbrance, and the proceeds of the property in the hands of a bona fide holder would be likewise free from any claim pf the plaintiff. The protection of the plaintiff under such circumstances, against the liability of the garnishee to dispose of the property pending the proceedings, is the right to a personal judgment
There can be no question but that the appeal from the judgment in favor of the garnishee did not operate as a ■supersedeas or stay of proceedings under such judgment, or
The result of the application of the principles stated in the foregoing, to the case before us, is that the defendant came rightEully into possession of the money received from Simon-ton, has a right to retain the same, and that plaintiffs have no claim thereto whatever. The judgment in favor of Si-monton discharged the equitable lien of plaintiffs, and it was not revived by a reversal of the judgment to the prejudice of the garnishee defendant or those dealing with him. The lien not being continued pending the appeal, it was lost beyond recovery by the disposition of the property pursuant to the judgment discharging the garnishee. The judgment
_Z?y Oouri.— The judgment of the circuit court is reversed, and the cause remanded with directions to dismiss the complaint and to render judgment in favor of the defendant for costs to be taxed according to law.
Reference
- Full Case Name
- Maxwell and others v. Bank of New Richmond
- Cited By
- 11 cases
- Status
- Published
- Syllabus
- Garnishment: Lien: Transfer of property by garnishee: Judgment far garnishee: Stay of proceedings pending appeal: Money judgment against garnishee. 1. The service of garnishee process creates an equitable lien upon property of the principal defendant in the hands of the garnishee, entitling the plaintiff to hold such property for the satisfaction of his claim against such defendant and to follow it into the hands of those who may purchase the same of the garnishee with notice of the situation, unless the lien he waived by plaintiff’s conduct. 2. The protection of the plaintiff against danger of the garnishee’s placing the property beyond the reach of the court, is the right to a personal judgment against the garnishee defendant, or an injunction to restrain the garnishee from in any way parting with the property pending the proceedings, and the right to follow the property as against persons deriving title thereto from the garnishee with notice of the equitable lien. 3. Á judgment in favor of the garnishee extinguishes the equitable , lien created by the service of the garnishee process, and protects the garnishee and those dealing with him pending an appeal from the judgment, unless the lien be continued according to law. 4 If an equitable lien in garnishee proceedings be extinguished by judgment in favor of the garnishee, and the lien be not continued pending an appeal from the judgment, and the garnishee part with the property while discharged of such lien, a reversal of the. judgment on appeal does not revive the lien or entitle plaintiff to a judgment against the garnishee either for the property or the. value thereof. 5. If plaintiff, in a garnishee action, elect to take a mere money judgment against the garnishee, such election operates to discharge the property from the equitable lien thereon. [Syllabus by MARSHALL, J.]