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Virginia National Bank v. Blofeld

Citations: 362 S.E.2d 692; 234 Va. 395; 4 Va. Law Rep. 1230; 1987 Va. LEXIS 269Docket: Record 841409

Court: Supreme Court of Virginia; November 25, 1987; Virginia; State Supreme Court

Narrative Opinion Summary

The case involves Virginia National Bank's attempt to garnish an $8,000 debt owed by Anna Lee Blofeld to the judgment debtor, George Blofeld, arising from a divorce settlement. The bank initially obtained a judgment against George for approximately $27,000 and initiated garnishment proceedings in December 1983. The trial court dismissed the garnishment, interpreting the law to only apply to vested debts at the time of the summons service. However, the Supreme Court of Virginia found this interpretation erroneous, clarifying that under Virginia Code §§ 8.01-501 and 8.01-511, execution liens cover intangible personal property acquired by the debtor during the lien's duration. The court determined that garnishment encompasses debts arising between the service of the summons and its return date. It concluded that Anna, as the garnishee, was liable for the $8,000 debt, which became vested before the return date, despite not being vested at the time of service. The trial court's ruling was reversed, and Anna was ordered to pay the amount to Virginia National Bank, reinforcing the broader applicability of garnishment under the relevant statutes.

Legal Issues Addressed

Execution Lien on Intangible Personal Property

Application: The court clarified that an execution lien under Virginia Code sections 8.01-501 and 8.01-511 encompasses debts acquired by the judgment debtor during the lien's duration.

Reasoning: The Supreme Court found this ruling erroneous, clarifying that under Virginia Code sections 8.01-501 and 8.01-511, an execution lien exists on intangible personal property acquired by the judgment debtor during the lien's duration.

Garnishment of Non-Vested Debts Under Virginia Code § 8.01-511

Application: The appellate court ruled that debts arising between the service and return date of a garnishment summons are subject to garnishment, even if they were not vested at the time of service.

Reasoning: The appellate court aligned with the bank's interpretation, noting that Code 8.01-501 supports the bank's claim that the garnishment summons can reach debts that may arise before the return date.

Interpretation of Virginia Code § 8.01-512.3

Application: The appellate court emphasized that the garnishment summons requires the garnishee to withhold sums the judgment debtor 'is or may be entitled' to during the specified period, not just those existing at the time of service.

Reasoning: However, this interpretation overlooks the requirement in Code § 8.01-512.3 that the garnishee must withhold sums to which the judgment debtor 'is or may be entitled.'

Obligations of Garnishee Under Garnishment Summons

Application: The court determined that the garnishee, having been properly served, was obligated to withhold sums owed to the judgment debtor that arose after the service and before the return date.

Reasoning: The court determined that Anna Lee Blofeld was properly served with a summons and therefore obligated to withhold the $8,000 she borrowed from Woods from the judgment debtor and subsequent garnishments.