Paul v. Kirkendall, 8572

Decision Date22 May 1957
Docket NumberNo. 8572,8572
Citation6 Utah 2d 256,311 P.2d 376
Partiesd 256 Irene PAUL and Charles J. Paul, Plaintiffs and Respondents, v. Woodrow Lawrence KIRKENDALL, John Doe, Jane Doe and John Doe Company, Defendants, and Maryland Casualty Company, a corporation, Garnishee and Appellant.
CourtUtah Supreme Court

Howell, Stine & Olmstead, Richard W. Campbell, Ogden, for appellant.

Young, Thatcher & Glasmann, Ogden, for respondents.

WORTHEN, Justice.

Appeal from an interlocutory order denying appellant's motion for summary judgment. Defendant Kirkendall will be referred to as defendant.

Plaintiffs herein recovered a judgment entered upon a jury verdict against defendant in the sum of $20,000 for personal injuries arising out of an automobile accident. That judgment was affirmed on appeal to this court: 1 Utah 2d 1, 261 P.2d 670.

Garnishee, appellant herein, had issued a policy of insurance in favor of defendant, and paid the judgment to the limit of its policy coverage of $10,000, together with interest.

Plaintiffs, after execution was returned unsatisfied, sued out a writ of garnishment with interrogatories, which was served on appellant, Maryland Casualty Company, as garnishee. In the interrogatories, it was asked, among other things, if garnishee was indebted to defendant. The answer to this question was negative.

Plaintiff then replied to the answers, alleging that garnishee was indebted to defendant in the amount by which the judgment taken against defendant exceeded the amount of the policy coverage.

Plaintiffs in their second reply to garnishee's answer pleaded certain affirmative matters upon which it predicated its contention that garnishee was obligated to defendant, to wit:

That prior to the trial of the above entitled action, the garnishee had an opportunity to settle all of the claims of plaintiffs against the defendant for less than the coverage of defendant under the policy issued by garnishee; that garnishee negligently and carelessly and in violation of its duty failed and refused to settle notwithstanding garnishee knew, or in the exercise of reasonable care should have known, that defendant was liable to the plaintiffs for damages far in excess of the limits of the policy. That in so refusing to settle, garnishee acted in bad faith. That garnishee carelessly and negligently and in bad faith elected to defend the said action upon the question of the amount of damages only, and elected to admit liability of defendant for all damages proceeding therefrom. That garnishee negligently and carelessly presented a defense as to the amount of damages only upon the theory that defendant was not liable for damages resulting from an operation to which plaintiff Irene Paul submitted for the correction of physical injuries sustained in the accident. That the garnishee assumed the complete defense of the action and refused said proferred settlement without consulting with the defendant or legal counsel retained by defendant, and garnishee further carelessly and negligently and in bad faith excluded the defendant's attorney from the trial of said cause and from participation in the appeal which the garnishee subsequently took from the judgment entered. Plaintiffs' reply to garnishee's answers prays as follows:

'Wherefore, plaintiffs pray judgment in favor of the defendant Woodrow Lawrence Kirkendall to the use of the plaintiffs and against the Garnishee Maryland Casualty Company for the said sum of Ten Thousand Six Hundred Five and 39/100 Dollars ($10,605.39) with interest thereon at eight per cent (8%) per annum from November 20, 1953, and for costs of court herein.'

Two additional facts are disclosed in the reply to the answer of the garnishee, as follows: (a) That at the time of trial the defendant was not in the United States but was in the vicinity of Arabia; (b) In paragraph five of the reply to the answer of the garnishee, it is alleged that immediately after the accident: 'The plaintiffs made claim for their injuries and damages aforesaid against said defendant and said claim was referred to the garnishee for handling and was by the garnishee denied.'

The question presented by this interlocutory appeal is whether or not the liability of the garnishee, if any, alleged in plaintiffs' reply to the garnishee's answers herein may be reached by garnishment.

The answer to the question must be determined by analyzing Rule 64D, Utah Rules of Civil Procedure, relating to Garnishment. We quote pertinent portions of said rule.

Rule 64D(d) provides:

'The writ shall be issued in the name of the state of Utah and shall be directed to the * * * garnishee or garnishees, advising * * * that he is attached as garnishee in the action, and commanding him not to pay any debt due or to become due to the defendant but to retain possession and control of all personal property, effects and choses in action of such defendant until further order. The writ may further require the garnishee to answer interrogatories * * * (1) whether the garnishee is indebted to the defendant, either in property or money, * * * (2) whether the garnishee has in his possession, in his charge, or under his control any property, effects, goods, chattels, rights, credits or choses in action of the defendant, or in which the defendant is interested; * * *'. (Emphasis added.)

Rule 64D(h) provides:

'If the garnishee answers the plaintiff may, within 10 days after the expiration of the time allowed for the filing of such answer, serve upon the garnishee and file a reply to the whole or any part thereof; and may also allege any matters which would charge the garnishee with liability. Such new matter in the reply shall be taken as denied or avoided, and the matter thus at issue shall be tried in the same manner as other issues of like nature. * * *' (Emphasis added.)

Rule 64D(m) provides:

'Every garnishee shall be allowed to retain or deduct out of the property, effects or credits of the defendant in his hands all demands against the plaintiff and against the defendant of which he could have availed himself if he had not been served as garnishee, whether the same are at the time due or not. Such garnishee shall be liable for the balance only after all mutual demands between himself and the plaintiff and defendant are adjusted, not including unliquidated damages for wrongs and injuries. The verdict or finding, if any, and the judgment shall show against which party any such claim is allowed, and the amount thereof.' (Emphasis added.)

In plaintiffs' brief it is contended that the chose in action in favor of defendant and against the garnishee is a liquidated claim in the amount of $10,605.39. It is impossible either to agree with this contention or to follow the processes by which such conclusion is reached, and the contention is without facts to support the same.

However, we are not here concerned...

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19 cases
  • Brown v. Candelora
    • United States
    • Pennsylvania Superior Court
    • 30 Enero 1998
    ...214 Tenn. 592, 381 S.W.2d 914 (1964); Ammerman v. Farmers Insurance Exchange, 19 Utah 2d 261, 430 P.2d 576 (1967); Paul v. Kirkendall, 6 Utah 2d 256, 311 P.2d 376 (1957); Murray v. Mossman, 56 Wash.2d 909, 355 P.2d 985 (1960); Kranzush v. Badger State Mutual Casualty Co., 103 Wis.2d 56, 307......
  • Rutter v. King
    • United States
    • Court of Appeal of Michigan — District of US
    • 5 Diciembre 1974
    ...is not subject to garnishment under the circumstances of this case. Murray v. Mossman, 56 Wash. (2d) 909; 355 P.2d 985 (1960); Paul v. Kirkendall, 6 Utah 2d 256; 311 P.2d 376 (1957); Steen v. Aetna Casualty & Surety Co., 157 Col(o.) 99; 401 P.2d 254 (1965); Powell v. Prudence Mutual Casualt......
  • Brown v. State Farm Mut. Auto. Ins. Ass'n
    • United States
    • United States Appellate Court of Illinois
    • 3 Agosto 1971
    ...authorization for suit by the injured party, and there was also a pending suit by the insured against the insurer. Paul v. Kirkendall, 6 Utah 2d 256, 311 P.2d 376 (1957) held that the matter could not be adjudicated in a garnishment proceeding. The insured was in Arabia at the time of suit,......
  • Gilley v. Farmer
    • United States
    • Kansas Supreme Court
    • 12 Junio 1971
    ...taken by National. (Steen v. Aetna Casualty, 157 Colo. 99, 401 P.2d 254; Pringle v. Robertson, 90 Or. 305, 465 P.2d 223; Paul v. Kirkendall, 6 Utah 2d 256, 311 P.2d 376; Stilwell v. Parsons, 51 Del. 342, 145 A.2d 397.) Other courts have also held that a cause of action against an insurer fo......
  • Request a trial to view additional results
1 books & journal articles
  • Bad Faith Dialogue
    • United States
    • Utah State Bar Utah Bar Journal No. 7-9, November 1994
    • Invalid date
    ...in the action). [12] See Auerbach Co. v. Key Security Police, Inc., 680 P2d 740, 742-43 (Utah 1984); Paul v. Kirkendall, 6 Utah 2d 256, 311 P2d 376, 380(1957). [13] See Broadwater v. Old Republic Surety, 854 P2d 527, 536 (Utah 1993) ("For a third party to have an enforceable right, the cont......

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