Legal Document

419 U.S. 601 95 Supreme Court Reporter 719 42 United States Reports Lawyer’s Edition 2d Series KF101.8 U54 751 NORTH GEORGIA FINISHING, INC., Petitioner,v.DI-CHEM, INC. Number 73—1121. Argued Nov. 18, 1974. Decided Jan. 22, 1975. Syllabus Georgia statutes permitting a writ of garnishment to be issued by an officer authorized issue attachment or court clerk in pending suits on affidavit the plaintiff his attorney containing only conclusory allegations, prescribing filing bond as method dissolving garnishment, which deprives defendant use property garnishee's hands litigation and making no provision for early hearing, violate Due Process Clause Fourteenth Amendment, Sniadach versus Family Finance Corp., 395 337, 89 1820, 23 349; Fuentes Shevin, 407 67, 92 1983, 32 556; Mitchell W. T. Grant Co., 416 600, 94 1895, 40 406, distinguished. That this case involved corporation's sizable bank account, rather than consumer's household necessities, is immaterial, since probability irreparable injury if proves unjustified sufficiently great require some procedure guard against initial error. Pp. 605—608. 231 Ga. 260, 201 South Eastern Reporter, 2nd 321, reversed remanded. Warren N. Coppedge, Jr., Dalton, Ga., petitioner. L. Hugh Kemp, respondent. Mr. Justice WHITE delivered opinion Court. 1 Under State Georgia, plaintiffs are 'entitled process garnishment.' Ga.Code Ann. § 46—101.1 To employ process, must make before 'some attachment, any record said being filed main filed, stating amount claimed due such action . that he has reason apprehend loss same part thereof unless shall issue.' 46—102. protect damage event fails recover, section also requires file sum double sworn due. Section 46—401 permits dissolve 'conditioned payment judgment rendered Whether these provisions satisfy Amendment us case. 2 On August 20, 1971, respondent suit petitioner Superior Whitfield County, alleging indebtedness owing from goods sold $51,279.17. Simultaneously with complaint prior its service petitioner, naming First National Bank Dalton garnishee. The asserted debt 'reason Garnishment issues.'2 forthwith summons bank, was served day. 23, conditioned pay final up claimed, judge thereupon discharged September 15, motion dismiss discharge bond, asserting, among other things, statutory unconstitutional it violated 'defendant's equal protection rights guaranteed him Constitution Georgia.' App. 11. heard overruled November 29. Court,3 finding constitutionality properly it, sustained statute rejected petitioner's claims invalid failure provide notice hearing connection issuance garnishment. 321 (1973).4 We granted certiorari. 417 907, 2601, 41 210 (1974). reverse. 3 recognized 349 (1969), had invalidated wages without opportunity but considered have done nothing more carve out exception, favor wage earners, 'to general rule legality statutes.' at 264, S.E.2d, 323. assets properties outcome action, although effect "impound (them) garnishee," id., 263, 323, apparently thought not implicate Clause. 4 This approach failed take account 556 (1972), decided year court's decision. There held Florida Pennsylvania replevin permitted secured installment seller reposses sold, judicial order supervision, help sheriff operating under behest seller. debtor deprived possession property, perhaps temporarily, did put seizure beyond scrutiny 'The draws bright lines around three-day, 10-day, 50-day deprivations property. Any significant taking within purview Clause.' Id., 86, S.Ct., 1997. Although length severity deprivation would another factor weigh determining appropriate form deemed determinative right sort. Because official seizures been carried safeguard mistaken repossession they were violation Amendment. 5 vulnerable reasons. Here, surely impounded and, absent totally during pendency alleged debt, all participation officer. 6 Nor saved recent decision 406 upheld Louisiana sequestration seller-creditor holding vendor's lien secure having cause issue. writ, however, issuable upon going mere allegations clearly setting facts entitling creditor sequestration. law expressly entitled immediate after dissolution proof grounds issued. 7 none saving characteristics statute. attorney, latter need personal knowledge facts. 46 103. affidavit, like one case, contain allegations. issuable, was, clerk, judge. Upon Here frozen, discernible face creditor. required demonstrate least probable Indeed, appear debtor's challenge will entertained, whatever may be.5 8 Respondent argues neither nor apposite here because each those cases dealt application protections consumers who victims contracts adhesion might irreparably damaged temporary whereas deals commercial involving parties bargaining power. See (1969). It addition posted gives assurance made whole turns unjustified. appliances likely suffer corporations accounts, so procedures necessary risk inclined now we past distinguish different kinds applying U.S., 89—90, 1998—1999. 9 Enough said, think, reversal remanded further proceedings inconsistent opinion. 10 So ordered. 11 Judgment 12 STEWART, concurring. 13 gratifying note my report demise 556, see 629—636, 1910—1914, (dissenting opinion) seems greatly exaggerated. Cf. s. Clemens, cable Europe Associated Press, quoted Atlantic Paine, Mark Twain: A Biography 1039 (1912). 14 POWELL, concurring judgment. 15 & N Dec. Immigration Nationality Decisions join Court's judgment, cannot concur think sweeps broadly appears resuscitate (1972). Only last term (1974), significantly narrowed precedential scope Fuentes. In concurrence Mitchell, noted: 16 today withdraws full reach (Fuentes') principle, extent fair say overruled.' 623, 1908 (Powell, J., concurring). 17 Three dissenting Justices, including author Fuentes, went their description impact Mitchell: 18 '(T)he unmistakably barely two years old, pointing change justify total disregard stare decisis.' 635, 1913 (Stewart, joined Douglas Marshall, JJ., dissenting). 19 relying substantially suggests again read calling into question much previously settled governing transactions. continue doubt whether strikes proper balance, especially where creditor's interest even greater debtor. do find relegate narrow factual determine fail requirements procedural process. 20 As observed traditional view "(w)here involved, postponement enquiry denial given ultimate determination liability adequate." 611, 1902, quoting Phillips Commissioner Internal Revenue, 283 589, 596—597, 51 608, 611—612, 75 L.Ed. 1289 (1931). Consistent view, unanimously approved prejudgment liens similar McKay McInnes, 279 820, 49 344, 73 975 (1929); Coffin Bros Bennett, 277 29, 48 422, 72 768 (1928); Ownbey Morgan, 256 94, 433, 65 837 (1921). generally supra, 613—614, 1903. But expansion concepts careful assessment nature governmental function challenged costs exacts private interests. See, e.g., Goldberg Kelly, 397 254, 263—266, 90 1011, 1018—1019, 25 287 (1970); Cafeteria Workers McElroy, 367 886, 895, 81 1743, 1748, 1230 (1961). analysis, stand. 21 remedies afford actual potential means assuring, circumstances, remove jurisdiction, encumber, otherwise dispose certain then available claim.1 seriously adverse debtor, depriving period applies. fact alone does give rise constitutional objection. State's legitimate facilitating recovery through never questioned. 22 Pregarnishment constitutionally mandated past. Despite ambiguity engendered reliance interpret imposing future.2 Such restrictions, antithetical very purpose remedy, leave little efficacy laws 50 States. satisfied state preceded garnishor's adequate security establishment neutral officer3 basis resort remedy preventing removal dissipation claim. Du prompt postgarnishment garnishor burden showing believe there sufficient time allow satisfaction debt. Since garnished bear relation controversy giving should free posting place. 24 fall short requirements. simple money allegedly owed. 46—101, set forth opinion, ante, 602 n. 1. shown 604 2, unrevealing assertion apprehension suffices invoke garnishment.4 insufficient enable most superficial preliminary need.5 compelling deficiency hearing. law, separate proceeding between party can intervene substituting himself Leake Tyner, 112 919, 38 Southeastern KF135 S6 343 (1901); Powell Powell, Ga.App. 122, 97 193 (1957). noted above, impose serious hardship context, precludes additional conditioning ability validity continuation bond. Moreover, contains enabling obtain fact,6 indication bears proving entitlement 26 consider combination deficiencies fatal Quite simply, fundamental fairness accommodation respective interests For reasons, 27 BLACKMUN, whom REHNQUIST joins, dissenting. 28 once again—for third less three years—struggles what regards aspects old long-unattacked designed way relief delinquent occasion, Court, me, sparse comparisons present hand, other; concludes resembles Mitchell; down structure offensive One gains impression, particularly paragraph endeavoring possible explaining just why reversed. And, result, corresponding States, exactly left questionable status, applicable standard measure This, undesirable affairs, dissent. number reasons: 29 mentioned passing 605—606, correctly regarded 263—264, 323 (1973), relating wages. makes emphasis: 30 'We deal wages—a specialized type presenting distinct problems our economic system. turn process.' 31 340, 1822. goes speak 'tremendous earners families support,' ibid., 'enormous' leverage 'on earner,' 341, allowed remain natural environment—wages—and expanded arm's-length relationships business enterprises financial consequence North Finishing Di-I—Chem. 33 2. 606, limitations affected bows Morrow Electric company Cruse, 370 F.Supp. 639 (ND Ga.1974), three-judge unconstitutional. Ante, 605 4. (somewhat surprisingly, am sure, Court) implications overtones came along months pre-Mitchell. Sniadach's appeared 34 3. that, stood area debtor-creditor relationships, 4—3 vote bobtailed cut back Mitchell. Certainly, Stewart, writer so: 35 identical otherwise.' 631, 1911. 36 'In short, indistinguishable simply reasoning adopted instead analysis dissent.' 634, 1913. 37 'Yet .. perceivable occurred makeup Court.' Surely, Brennan when dissent 'in agreement reversal' 636, 1914. And surely, so, substantially, when, concurrence, observed: 39 (the Fuentes) 1908. accept views severely limited regard influence precedent decision, obviously brought vacancies argument. Justices filling vacant seats qualified hand participate reargument.1 Announcing four-Justice majority seven-Justice shorthanded violence Chief Marshall's wise assurance, Briscoe Commonwealth's Kentucky, Pet. 118, 709 (1834), practice 'except absolute necessity' decide 'of court.' encountered situation century ago respect Legal Tender Cases; mishandled decisional similarly; regret Originally, Hepburn Griswold, Wall. 603, 513 (1870),2 assertedly 5—3 vote, vacancy, Act 1862, Statutes-at-Large 345, debts. Grier, failing health, Wall., 626. stated 'was conference' 27, 1869, 'directed read' January 1890. Ibid. submitted resignation President December effective February 1, 1870, accepted 15. sat 31. vii-viii. actually 7, Grier longer bench. 43 later, filled, 5—4 Cases, 457, (1871). said: 44 'That (Hepburn Griswold) divided court, judges existence provided have. habit treating consideration power differently concern merely (citing Kentucky). accustomed hear them absence avoided.' 553—554. 45 recall adhere announced Marshall resulted confusion, position, embarrassment, recrimination. Chase 572.3 Later, Burton called attention lapse heartily endorsed withholding is, today, five votes exist waiting filled filled. Burton, Cases: Celebrated Reversal, A.B.A.J. (1956), reprinted Chapter IX Occasional Papers (E. Hudson ed. 1969). advice, well go unheeded come four supporting nine-Justice already reargument. 47 admonition Great Justice, ny override natural, understandable, eagerness decide. Had bowed wisdom us, waited brief reargument been, venture suggest immersed way, another, manner leaves counsel communities uncertain own established long-accepted pass muster wavering tribunal off Washington, D.C. intended confusing results kind forthcoming imposed owe lend. 5. Neither conclude vendor-vendee automatically controlled Sniadach. Sniadach, noted, concerned reeks earner. corporation engaged business. protected (a) instituted primary obtained creditor, thus placing obligation initiate proof, assuring debror; (b) respondent's statutorily deposited bond; (c) requirement loss. position single These transactions day-to-day world. They situations basic unfairness, imbalance, inequality. D. Haw. Hawai‘i KFH45 A2 Overmyer Frick 405 174, 775, 124 (1972); Swarb Lennox, 191, 767, 138 clerk-judge distinction, relied significance long agent system, affords entities 6. apparent disclaimer, embarked case-by-case (weighted heavily hope Mitchell) area. road unrewarding one, provides satisfactory answers issues magnitude. affirm Georgia. BURGER dissents reasons numbered BLACKMUN. relevant Code Annotated follows: 46—101 'Right writ; exempt until pending, obtained, following regulations: Provided, daily, weekly monthly person residing defendant: further, share cropper cropper: construed abridging obtained.' 46—102 'Affidavit; necessity contents. Bond plaintiff, agent, issue, good security, due, payable be, damages sustain suing recover suit, sought subject No taken nonresident non- resident possessed real estate county value bond.' 46—103 'Affidavit 'When swear according best belief, sign name bound thereby though signed himself.' 46—104 firm, etc. partners several persons jointly, joint creditors prescribed attachment.' 'Dissolution garnishments; issued, clerk's office justice peace, condition enter principal securities, entered securities appeal, whenever funds issued.' entirety 'SUPERIOR COURT OF COUNTY GEORGIA, COUNTY. 'Personally R. Foster, Di-Chem, Inc., oath says DiChem, herein Finishing, defendant, indebted $51,279.17 DOLLARS, principal, $....., interest, $..... attorney's fees, cost has—a pending—returnable affiant issues. 'Sworn subscribed 1971. '/s/ Dual Broadrick, Clerk Affiant. 'Superior County.' 3—4. Appeal first instance transferred Appeals. 127 593, 194 508 certiorari, 230 198 284 (1973). Subsequent federal sitting Northern District declared Ga.1974). Petitioner asserts, Jackson Barksdale, 461, 87 691 (1916); Respondent, citation authority states '(c)ounsel could attacked ways either Federal Courts. .' Brief serve insure retain jurisdiction adjudicate underlying controversy. advent liberal interpretation States' exert over nonresidents State, International Shoe 326 310, 66 154, (1945), diminishes importance function. cites exception individual's cases, remedy. itself indicates, wages, 'a system.' purport pregarnishment instances. therefore peripherally accord suggestion rectify error When combined availability compensate harm caused, possibility correction context. original affidavit. courts amplified construction. Wilson Fulton Metal Bed Mfg. 88 884, 78 360, 362 (1953). rendered, issuing preliminarily inquire allegation contemplate inability collect elaborate. illustrate point. From oral argument, feared accessible unencumbered accounts. At indicated Finishing's holdings tangible encumbered mortgages factoring contracts. eventual entirely conduct accounts readily susceptible almost transfer dissipation, occurrence often likelihood foreign State. An support nonresident's normally averred transitory prospective contradiction respondent, authorize contained contrary submission indicating misconceived warrant June 12, 1972. Rehnquist Members before, 7. 404 xi—xvii. argued 9, Broderick's Executor Magraw, 639, 531 (1870). Hughes described result Cases 'three notable instances (in which) suffered self-inflicted wounds.' C. Hughes, (1928). others named Dred Scott Sandford, How. 393, (1857), Income Tax Case, Pollock Farmers' Loan Trust 157U.S. 429, 673, 759 (1895), rehearing, 158 601, 912, 1108 (1895).

Classification Label: 1