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Keywords

plaintiffdamagesattachmentgarnishmentexemplary damages

plaintiffdefendantjurisdictiondamagesattachmentgarnishmentlevyexemplary damages

Related Cases

United States Fidelity & Guaranty Co. v. Miller, 218 Ala. 158, 117 So. 668

Facts

Frank Miller was involved in a garnishment suit initiated by G.W. King against him, with the United States Fidelity & Guaranty Company providing a bond for the garnishment. The garnishment was alleged to have been wrongfully and maliciously issued, damaging Miller's credit and business. Miller claimed that the garnishment caused him to liquidate his debts and ultimately abandon his business due to the financial strain it imposed.

The plaintiff offered evidence going to show that the plaintiff and King, at the time the garnishment was sued out, were business rivals, each operating a business college, that Rutter, the garnishee, was indebted to the plaintiff in the sum of $1,800, payable in installments evidenced by notes which plaintiff had hypothecated as collateral with a bank to obtain credit as a means of obtaining money to conduct his business; that, as a result of the garnishment against Rutter, plaintiff was compelled to liquidate his indebtedness at the bank, and this so crippled his credit and financial ability that he had to abandon his business.

Issue

Did the court err in allowing the jury to award damages for injury to Miller's credit and business resulting from the wrongful issuance of the garnishment?

Rule

To recover exemplary damages in an action for wrongful attachment, the complainant must show that the process was wrongfully sued out and that the plaintiff acted without probable cause.

It is the settled law in this jurisdiction that, to authorize the recovery of exemplary damages in an action for wrongful attachment, the complainant must not only show that the process was wrongfully sued out, but that the plaintiff sued out the writ, without probable cause for believing that some statutory ground therefor existed, and that there was a debt or demand justly due or owing by the defendant to the plaintiff.

Analysis

The court found that the evidence presented by Miller indicated that the garnishment was not only wrongfully issued but also done with malice, as King was aware that Miller was not indebted to him at the time. This allowed the jury to consider damages for the harm to Miller's credit and business, as the garnishment had a direct impact on his financial standing and ability to operate his business.

These averments clearly import that the garnishment was not only wrongfully sued out, but was sued out without probable cause and were sufficient under the authorities to authorize the recovery of exemplary damages.

Conclusion

The court affirmed the judgment in favor of Miller, concluding that the jury was justified in awarding damages based on the evidence of wrongful and malicious garnishment.

The ruling in Marx Bros. v. Leinkauff & Strauss, 93 Ala. 453, 9 So. 818, that the averments in the complaint in that case, that prior to the issuance of the attachment the plaintiffs 'were held in great regard by, and had a large credit with, each of the following firms, viz., M.P. Levy, A.G. Levy & Co., and J. Pollock & Co., and were able to borrow large sums of money from each of said persons; and that, by reason of the matters hereinbefore complained of, plaintiffs' credit with said several persons was greatly injured to their damage,' presented a claim for damages that 'were too remote and speculative' to be recovered on that action.

Who won?

Frank Miller prevailed in the case because the court found that the garnishment was wrongfully and maliciously issued, justifying the damages awarded by the jury.

The court affirmed the judgment for the plaintiff, ruling that the garnishment was wrongfully and maliciously sued out, causing damages to Miller's credit and business.

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