Rhode Island Hospital v. Collins, 75-87-A
| Decision Date | 07 February 1977 |
| Docket Number | No. 75-87-A,75-87-A |
| Citation | 368 A.2d 1225,117 R.I. 535 |
| Parties | , 21 UCC Rep.Serv. 619 RHODE ISLAND HOSPITAL v. Leon W. COLLINS. ppeal. |
| Court | Rhode Island Supreme Court |
During March 1974 the plaintiff (the hospital) in an action of book account obtained a judgment in the Superior Court against the defendant (Collins) for $12,398.21. After execution was issued and returned wholly unsatisfied, the hospital, acting pursuant to G.L.1956 (1969 Reenactment) § 9-28-3, commenced supplemental proceedings against Collins. During a hearing on Collins' ability to satisfy the judgment, it developed that in September, just about 6 weeks before the hospital instituted this suit, Collins transferred title to his home from himself to a corporation of which he is the sole stockholder. At the conclusion of the hearing, the trial justice ordered Collins to endorse his stock certificate over to the hospital 'for attachment and delivery' to the hospital's attorney. The trial justice stayed his order pending our consideration of Collins' appeal.
Before us Collins argues that the trial justice could not order him to endorse the certificate over to his creditor's attorney. We agree.
The statutes to which we shall allude during the consideration of Collins' appeal are: §§ 9-28-1, 9-28-3 through 9-28-7, and 6A-8-317(2). Chapter 28 of title 9 affords a judgment creditor with two remedies when an execution is returned unsatisfied. Section 9-28-1 specifically provides that when an execution is returned unsatisfied either wholly or in part, a judgment creditor may institute a civil action to reach and apply and subject to the payment and satisfaction of his judgment 'any equitable assets or any choses in action of the judgment debtor' except those that are statutorily exempt from attachment. On the other hand, §§ 9-28-3 through 9-28-7 permit a creditor to apply to the court for a citation which directs the debtor to appear in court and show cause why an inquiry cannot be made into his ability to satisfy the judgment by either making payment in full or a series of installment payments. Failure to comply with a payment order can result in contempt proceedings.
When a creditor chooses the 'citation' path, the sole source to which a trial justice can look in seeking to satisfy the outstanding judgment is the debtor's income. Before a court can fix the amount a debtor is able to pay from his income to the creditor, the court must first deduct from the income a reasonable amount for the support of the debtor and his or her family. Whatever income remains is the amount of the payment or payments to be made to the creditor. Wood v. Paolino, 116 R.I. 106, 352 A.2d 397 (1976); Barber v. Jemery, 109 R.I. 556, ...
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