Larson v. Fetherston, Nos. 151--153
| Court | United States State Supreme Court of Wisconsin |
| Writing for the Court | HANLEY |
| Citation | 44 Wis.2d 712,172 N.W.2d 20 |
| Decision Date | 25 November 1969 |
| Docket Number | Nos. 151--153 |
| Parties | Norman L. LARSON et al., Plaintiffs-Respondents, v. Frank T. FETHERSTON et al., Defendants, Commercial State Bank of Madison, Garnishee Defendant, Northwest Airlines, Inc., et al., Intervening Defendants-Respondents, Cephas Johnson et al., Intervening Defendants-Appellants. Norman L. LARSON et al., Plaintiffs-Respondents, v. MUELLER TRAVEL AGENCY, INC., Defendant, 1st Natl. Bank of Columbus, Garnishee Defendant, Northwest Airlines, Inc., et al., Intervening Defendants-Respondents, Cephas Johnson et al., Intervening Defendants-Appellants. NORTHWEST AIRLINES, INC., et al., Plaintiffs-Respondents, v. Frank T. FETHERSTON et al., Defendants, Norman L. Larson et al., Defendants-Respondents, Commercial State Bank of Madison, et al., Garnishee Defendants, Cephas Johnson et al., Intervening Defendants-Appellants. |
Page 20
v.
Frank T. FETHERSTON et al., Defendants,
Commercial State Bank of Madison, Garnishee Defendant,
Northwest Airlines, Inc., et al., Intervening Defendants-Respondents,
Cephas Johnson et al., Intervening Defendants-Appellants.
Norman L. LARSON et al., Plaintiffs-Respondents,
v.
MUELLER TRAVEL AGENCY, INC., Defendant,
1st Natl. Bank of Columbus, Garnishee Defendant,
Northwest Airlines, Inc., et al., Intervening Defendants-Respondents,
Cephas Johnson et al., Intervening Defendants-Appellants.
NORTHWEST AIRLINES, INC., et al., Plaintiffs-Respondents,
v.
Frank T. FETHERSTON et al., Defendants,
Norman L. Larson et al., Defendants-Respondents,
Commercial State Bank of Madison, et al., Garnishee Defendants,
Cephas Johnson et al., Intervening Defendants-Appellants.
Rehearing Denied Feb. 3, 1970.
[44 Wis.2d 713]
Page 21
Actions in garnishment. The judgments appealed from dismissed the claims of all of the intervening defendants.On June 11, 1965, a Mr. Frank T. Fetherston purchased the Mueller Travel Agency from Messrs. Larson and Meyer. Shortly thereafter the agency assets were transferred to the Mueller Travel Agency, Inc., which had been incorporated on or about June 8, 1965. The officers and directors of this corporation were Messrs. Fetherston, Johnson and Parker, the former also being its president.
All rights formerly held by Messrs. Larson and Meyer were thus ultimately transferred to the newly-organized corporation. Included among these rights was the right to sell tickets for several airlines, including Northwest [44 Wis.2d 714] Airlines, Inc., Eastern Airlines, Inc., Trans World Airlines, Inc., Delta Airlines, Inc., American Airlines, Inc., and North Central Airlines, Inc.
These airlines represented by the Air Traffic Conference of America (hereinafter 'ATC') had originally appointed Messrs. Larson and Meyer as selling agents. The agency agreement between it and the agents had provided that:
'All moneys, less applicable commissions * * * shall be the property of the Carrier, and shall be held in trust by the Agent until satisfactorily accounted for to the Carrier. * * *'
Originally this agreement had also required that all agents maintain special deposit accounts for the proceeds of ticket sales. However, this requirement was eliminated effective January 1, 1963, and replaced with the requirement that agents obtain fidelity bonds. Pursuant to this requirement a bond covering both Larson and Meyer was procured from the Insurance Company of North America (hereinafter 'ICNA'). Despite the elimination of special deposit requirements, the trust provision quoted above remained in effect.
Upon sale of the agency to Mr. Fetherston, Messrs. Larson and Meyer contacted ICNA to transfer coverage to the Mueller Travel Agency, Inc. Under the subsequently issued fidelity bond ICNA agreed that it would indemnify the ATC group for all defalcations of the Mueller Travel Agency, Inc., up to $50,000, but required that Messrs. Johnson, Parker and Fetherston agree to personally indemnify it, should such payment to the ATC group be required.
From the time of its inception in June of 1965 until January of 1967, the Mueller Travel Agency, Inc., (hereinafter 'Mueller') deposited the proceeds of its ticket sales, as well as all other funds into a single
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account in the First National Bank of Madison. Until January of [44 Wis.2d 715] 1967, it had also remitted from this account the proceeds of airline ticket sales. Such remittances were required on a regular basis under the terms of its agreement with ATC.In January or early February of 1967, the First National Bank terminated its relationship with Mueller, and Mueller's remittances to ATC...
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Randone v. Appellate Department
...authority of Sniadach. (Jones Press Inc. v. Motor Travel Services, Inc. (1970) 286 Minn. 205, 176 N.W.2d 87; Larson v. Fetherston (1969) 44 Wis.2d 712, 172 N.W.2d The recent line of cases, commencing with Sniadach, reaffirms the principle that an individual must be afforded notice and an op......
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Klim v. Jones, Civ. A. No. 52332.
...have split when faced with the question of extending Sniadach to attachment of property other than wages. Compare Larson v. Fetherston, 44 Wis.2d 712, 172 N.W.2d 20, 23 (1969) (applying Sniadach to garnishment of other forms of property since "a due process violation should not depend on th......
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Blair v. Pitchess
...due process, at least where Fifth Amendment protections had not effectively been waived by contract. In Larson v. Fetherston (1969) 44 Wis.2d 712, 717--719, 172 N.W.2d 20, the Wisconsin Supreme Court held that all prejudgment garnishments are unconstitutional under the Sniadach rationale, w......
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Hall v. Garson, No. 29690 Summary Calendar.
...devices given to protect creditors' interest are Arnold v. Knettle, 1969, 10 Ariz.App. 509, 460 P.2d 45 and Larson v. Fetherston, 1969, 44 Wis.2d 712, 172 N.W.2d 20. See also Sackin v. Kersting, 1969, 10 Ariz.App. 340, 458 P.2d 27 For a statute that does require such a showing see the Texas......
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Epps v. Cortese, Civ. A. No. 70-2592.
...Motor Travel Services, Inc., 286 Minn. 205, 176 N.W.2d 87 (1970) (prejudgment garnishment of accounts receivable); Larson v. Fetherston, 44 Wis.2d 712, 172 N.W.2d 20 (1969) (prejudgment garnishment of bank accounts); Mills v. Bartlett, 265 A.2d 39 (Del.Super. 1970) (prejudgment foreign wage......
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Randone v. Appellate Department
...authority of Sniadach. (Jones Press Inc. v. Motor Travel Services, Inc. (1970) 286 Minn. 205, 176 N.W.2d 87; Larson v. Fetherston (1969) 44 Wis.2d 712, 172 N.W.2d The recent line of cases, commencing with Sniadach, reaffirms the principle that an individual must be afforded notice and an op......
-
Klim v. Jones, Civ. A. No. 52332.
...have split when faced with the question of extending Sniadach to attachment of property other than wages. Compare Larson v. Fetherston, 44 Wis.2d 712, 172 N.W.2d 20, 23 (1969) (applying Sniadach to garnishment of other forms of property since "a due process violation should not depend on th......
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Fuentes v. Shevin Parham v. Cortese 8212 5039, 70 8212 5138, Nos. 70
...Klim v. Jones, 315 F.Supp. 109 (N.D.Cal.); Randone v. Appellate Dept., 5 Cal.3d 536, 96 Cal.Rptr. 709, 488 P.2d 13; Larson v. Fetherston, 44 Wis.2d 712, 172 N.W.2d 20; Jones Press, Inc. v. Motor Travel Services, Inc., 286 Minn. 205, 176 N.W.2d 87. See Lebowitz v. Forbes Leasing & Finance Co......