Opinion ID: 2670481
Heading Depth: 2
Heading Rank: 2

Heading: Garnishment of G&D Account 61663

Text: PS Business argues that it is entitled to funds held in G&D account 61663 because Deutsch, the judgment debtor, has an interest in the account. PS Business contends that Deutsch's interest is a liability subject to garnishment under the terms of Code § 8.01-511. We disagree. Under Code § 8.01-511, a judgment creditor can institute garnishment proceedings if 'there is liability' on a third person to the judgment debtor. Network Solutions, Inc. v. Umbro Int'l, Inc., 259 Va. 759, 768, 529 S.E.2d 80, 85 (2000). We have held that '[l]iability' in this context means a 'legal obligation', 'enforceable by civil remedy,' 'a financial or pecuniary obligation,' or a 'debt.' Id. Thus, because garnishment proceedings are substantially . . . action[s] at law by the judgment debtor in the name of the judgment creditor against the garnishee, . . . the judgment creditor stands upon no higher ground than the judgment debtor and can acquire no 6 greater right than such debtor . . . possesses. Id. (quoting Lynch v. Johnson, 196 Va. 516, 521, 84 S.E.2d 419, 422 (1954)). The relationship between a general depositor and the bank in which its deposit is made is simply that of creditor and debtor. The monies deposited become the property of the bank and the bank becomes a debtor to that depositor. Bernardini v. Central Nat'l Bank, 223 Va. 519, 521, 290 S.E.2d 863, 864 (1982). Deutsch is not the title owner of account 61663, G&D is. As the account is not in Deutsch's name, SunTrust does not stand in a relationship of debtor to Deutsch as to any funds in account 61663. In the absence of evidence regarding the contractual relationship between the Deutsch and G&D accounts, the periodic transfer of funds between those accounts does not establish a debtor relationship between SunTrust and Deutsch to the funds in G&D account 61663 that would subject those funds to a claim by a creditor with a judgment against Deutsch. As we have said, the judgment creditor[, PS Business,] stands upon no higher ground than the judgment debtor[, Deutsch,] and can acquire no greater right than such debtor himself possesses. In such a proceeding the claim of the judgment debtor[, Deutsch,] against the garnishee[, SunTrust,] must be certain and absolute, because our statutes do not authorize a court of law, in a mere side issue growing out of a garnishment proceeding, to exercise the intricate and complicated duties of a chancellor. 7 Lynch, 196 Va. at 521, 84 S.E.2d at 422. Consequently, PS Business, standing on no higher ground than Deutsch, the judgment debtor, has no right to possession of the funds in G&D account 61663, and cannot subject those funds to garnishment. The circuit court did not err in ordering the return to G&D of $133,656.69 drawn from account 61663.