W. B. Worthen Co. v. Thomas, 4-3192.

• Decision Date: 27 November 1933
• Docket Number: No. 4-3192.,4-3192.
• Citation: 65 S.W.2d 917
• Parties: W. B. WORTHEN CO. v. THOMAS.
• Court: Arkansas Supreme Court

Page 917

65 S.W.2d 917

W. B. WORTHEN CO. v. THOMAS.

No. 4-3192.

Supreme Court of Arkansas.

November 27, 1933.

Rehearing Denied January 8, 1934.

Appeal from Circuit Court, Pulaski County, Second Division; Richard M. Mann, Judge.

Action by the W. B. Worthen Company, agent, against Mrs. W. D. Thomas and another, doing business as copartners under the firm name and style of Enterprise Harness Company, in which plaintiff secured judgment against defendants and caused the issuance and service of writs of garnishment on certain persons and the Missouri State Life Insurance Company. From a judgment, granting named defendant's motion to dismiss the writ against the insurance company and her schedule of money owed her by such company as exempt from garnishment, plaintiff appeals.

Affirmed.

Appellant, W. B. Worthen Co., Agent, plaintiff below, procured judgment in personam against one Ralph Thomas and Mrs. W. D. Thomas, known also as Van Cleve Thomas, appellee herein, doing business as copartners under the firm name and style of Enterprise Harness Company, based upon personal service of summons upon each of said defendants, in the Pulaski circuit court, Second division, on August 31, 1932, in the sum of $1,200 with interest thereon at 6 per cent. per annum from July 5, 1932, until paid and costs. The judgment was not appealed from and remains in full force.

Pursuant to said judgment the appellant caused writs of garnishment with allegations and interrogatories to be served upon certain persons, naming them, who answered denying having any property belonging to either Ralph Thomas or Mrs. W. D. Thomas, and stating further that they were not indebted to them, or either of them, in any amount.

That appellant caused a writ of garnishment based upon the judgment aforesaid with allegations and interrogatories to be served upon the Missouri State Life Insurance Company by the sheriff of Pulaski county by delivering same to U. A. Gentry, state insurance commissioner, the agent designated by said garnishee for service of process upon it in Pulaski county, wherein appellant alleged that said garnishee had in its hands and possession $5,000 belonging to appellee as shown by the sheriff's return.

The Legislature enacted Act No. 102 at its 1933 Session (page 321), the title and first section of which reads as follows:

"Act 102.

"`An Act to Extend the Exemption Laws of This State.'

"Be it enacted by the General Assembly of the State of Arkansas:

"Section 1. All moneys paid or payable to any resident of this state as the insured or beneficiary designated under any insurance policy or policies providing for the payment of life, sick, accident and/or disability benefits shall be exempt from liability or seizure under judicial process of any court, and shall not be subjected to the payment of any debt by contract or otherwise by any writ, order, judgment, or decree of any court, provided, that the validity of any sale, assignment, mortgage, pledge or hypothecation of any policy of insurance or if any avails, proceeds or benefits thereof, now made, or hereafter made, shall in no way be affected by the provisions of this act."

"Approved March 16th, 1933."

Appellee filed a motion to dismiss the writ of garnishment against the life insurance company issued and served on March 10, 1933, and for the further purpose of scheduling a certain sum of money owed her by the aforesaid insurance company as exempt from garnishment or seizure under the provisions of Act No. 102 of 1933, which she alleged exempted the money due her from garnishment or seizure under the judicial process of any court.

On April 6, 1933, the insurance company answered the garnishment, stating that it had issued theretofore to W. D. Thomas, its policy No. 86800 in the amount of $5,000; "that appellee herein, Mrs. W. D. Thomas, known also as Van Cleve Thomas, was designated as beneficiary therein, and that she had made claim on it for the proceeds of said policy. That by reason of certain accumulations on said policy that it admitted an indebtedness thereunder in the amount of five thousand fifty-seven and 80/100 dollars ($5057.80), and that it was ready to pay this amount to said beneficiary when authorized to do so by an order of the Pulaski Circuit Court."

It stated further "that by the provisions of Act No. 102, enacted by the General Assembly of the State of Arkansas, at its 1933 session, all moneys payable to any resident of this State under a policy of insurance are exempt and not subject to seizure under judicial process of any court. That appellee was then a resident of this State," and prayed the court to enter an order discharging it of all liability to appellant, and that it be authorized to pay the proceeds of the policy to appellee.

On April 7, 1933, the court upon a petition of appellee found that $2,000 was a sufficient amount to satisfy any claim or judgment that appellant could have against any of the funds held by the insurance company, and ordered,...