November 12, 2008, Introduced by Rep. Gaffney and referred to the Committee on Banking and Financial Services.
A bill to amend 1961 PA 236, entitled
"Revised judicature act of 1961,"
by amending section 4011 (MCL 600.4011), as amended by 1994 PA 346.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
4011. (1) Subject to sections 4061 and 4061a , and the
conditions
in subsections (2) to (10) (11), the court has power by
garnishment to apply the following property or obligation, or both,
to the satisfaction of a claim evidenced by contract, judgment of
this
state, or foreign judgment, whether or not the this state
has
jurisdiction over the person against whom the claim is asserted:
(a) Personal property belonging to the person against whom the
claim
is asserted but which that
is in the possession or control of
a third person if the third person is subject to the judicial
jurisdiction
of the this state and the personal property to be
applied is within the boundaries of this state.
(b) An obligation owed to the person against whom the claim is
asserted if the obligor is subject to the judicial jurisdiction of
the
this state.
(2) Except as provided in sections 4061 and 4061a, the court
may exercise the jurisdiction granted in this section only in
accordance with the Michigan court rules. Except as otherwise
provided by sections 4061 and 4061a and the Michigan court rules,
the
this state and each governmental unit within the this state,
including but not limited to a public, municipal, quasi-municipal,
or governmental corporation, unincorporated board, public body, or
political subdivision, may be proceeded against as a garnishee in
the same manner and with the same effect as a proceeding against an
individual garnishee.
(3) A writ of garnishment may be issued before judgment only
as provided in this subsection. Upon ex parte application showing
that the person against whom the claim is asserted is not subject
to
the judicial jurisdiction of the this state or, after
diligent
effort, cannot be served with process as required to subject the
person
to the judicial jurisdiction of the this state, a copy of
the writ of garnishment shall be served upon the person against
whom the claim is made in the same manner as provided by the
Michigan court rules for service of process in other civil actions
in which personal jurisdiction over the defendant is not required.
Upon entry of judgment in the principal action, the obligation or
property garnished shall be applied to the satisfaction of the
judgment.
(4) A garnishment proceeding shall not be commenced against
the
this state or a governmental unit of the this state,
including
but not limited to a public, municipal, quasi-municipal, or
governmental corporation, unincorporated board, public body, or
political subdivision, until after the plaintiff's claim has been
reduced to judgment.
(5) A garnishment proceeding shall not be commenced against a
person for money owing to a defendant on account of labor performed
by the defendant until after the plaintiff's claim has been reduced
to judgment.
(6) A sheriff or other public officer is not subject to
garnishment for money or things received or collected by him or her
pursuant
to an execution or other legal process in the favor of the
defendant or because of any money in his or her hands for which he
or she is accountable merely as a public officer to the defendant.
(7) A mortgagor is not subject to garnishment for money owed
under the mortgage to the mortgagee or a successor or assignee of
the mortgagee.
(8) (7)
A garnishment proceeding shall not
be commenced if the
commencement
of such a the proceeding is forbidden by a statute of
this state.
(9) (8)
Except as otherwise provided in
sections 4012 and
4061, a plaintiff shall pay a fee of $1.00 to the garnishee at the
time the garnishee is served with a writ of garnishment.
(10) (9)
If the court or garnishee possesses
money or property
pursuant to a writ of garnishment after the court releases the
garnishee from liability under that writ, the court shall convey or
order the conveyance of the money or property to any of the
following, as the court determines appropriate:
(a) The defendant's attorney, if the defendant is represented
by counsel in the garnishment proceeding.
(b) The defendant, if the defendant is not represented by
counsel in the garnishment proceeding.
(c) The plaintiff.
(11) (10)
A writ of garnishment is not
effective if both of
the following conditions are met:
(a) The plaintiff fails to provide the garnishee with
information sufficient for the garnishee to identify the defendant.
(b) The garnishee provides the court with written notice of
the insufficiency described in subdivision (a).