Chicago Dist. Council of Carpenters Health & Welfare Fund v. Alan Scott Co.

Decision Date20 April 1979
Docket NumberNo. 78-2324,78-2324
Citation597 F.2d 1103
PartiesCHICAGO DISTRICT COUNCIL OF CARPENTERS HEALTH & WELFARE FUND et al., Plaintiffs-Appellees, v. The ALAN SCOTT COMPANY, Defendant, and Transamerica Insurance Company, Garnishee-Appellant.
CourtU.S. Court of Appeals — Seventh Circuit

William J. Hacker, Chicago, Ill., for garnishee-appellant.

Sol A. Gayle, Chicago, Ill., for plaintiffs-appellees.

Before FAIRCHILD, Chief Judge, and PELL, Circuit Judge, and BONSAL, Senior District Judge. *

PER CURIAM.

This case began in June 1977 as a routine suit against an employer by three union trust funds to collect unpaid contributions due the funds under the provisions of a collective bargaining agreement. Default judgment was entered against the employer, The Alan Scott Company, and in favor of the plaintiffs in the amount of $1,802.04, plus interest and costs, on October 28, 1977.

The judgment against the employer was not satisfied and the trust funds initiated non-wage garnishment proceedings against the garnishee-appellant, the Transamerica Insurance Company, pursuant to Illinois law and Rule 69 of the Federal Rules of Civil Procedure. Although Transamerica denied in answers to interrogatories that it held any property of The Alan Scott Company or that it was indebted to the company in any way, the district court held otherwise and granted summary judgment to the plaintiffs against Transamerica. Transamerica appealed. We reverse.

Transamerica is the surety on a wage and welfare bond obtained by The Alan Scott Company in favor of the Chicago District Council of Carpenters, whose trust funds are plaintiffs here. The bond essentially provides that Transamerica, as surety, is obligated to pay to the union any wages, welfare fund contributions, pension fund contributions, or apprentice program contributions unpaid by The Alan Scott Company. The trust funds argue that the surety bond is therefore analogous to an insurance policy and thus subject to garnishment.

The Illinois law (Chap. 62, § 33 of the Illinois Revised Statutes) provides that indebtedness "to the judgment debtor" or "property belonging to the judgment debtor" are subject to garnishment proceedings. It is hornbook law that a principal cannot maintain a suit against a surety for his own default. 74 Am.Jur.2d Suretyship, § 205. There is therefore no "indebtedness" owed The Alan Scott Company by Transamerica and thus nothing subject to garnishment. Unlike an...

To continue reading

Request your trial
1 cases
  • Argento v. Village of Melrose Park
    • United States
    • U.S. Court of Appeals — Seventh Circuit
    • January 27, 1988
    ... ... Sward, Rooks, Pitts & Poust, Chicago, Ill., for defendant-appellant ... 2d 345 (7th Cir.1965); Chicago District Council of Carpenters Health & Welfare Fund v. Alan Scott ... , 158-160, 493 N.E.2d 1175, 1179-1181 (4th Dist. 1986), certiorari denied, --- U.S. ----, 107 ... ...
1 books & journal articles
  • Section 11.7 Nature and Extent of Surety’s Liability
    • United States
    • The Missouri Bar Insurance Practice 2015 Chapter 11 Surety Bonds
    • Invalid date
    ...a suit against a surety for the principal’s own default. Chicago Dist. Council of Carpenters Health & Welfare Fund v. Alan Scott Co., 597 F.2d 1103 (7th Cir. 1979). Under Missouri law, in the absence of limitations and restrictions, a surety’s liability is coextensive with that of the princ......

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT