Acts and Regulations

G-2 - Garnishee Act

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Document at 13 September 2015
CHAPTER G-2
Garnishee Act
Definitions
1In this Act
“judge” where the word is used in connection with any proceedings upon and after summons against the garnishee, means a judge of The Court of Queen’s Bench of New Brunswick;(juge)
“judgment” includes an order made by The Court of Queen’s Bench of New Brunswick with respect to maintenance and education of children, and alimony and maintenance of a wife;(jugement)
“owing” or “due” means owing, due or accruing.(dû)(échu)
R.S., c.97, s.1; 1956, c.37, s.1; 1979, c.41, s.56; 2008, c.43, s.7
Satisfaction of judgment debt
2(1)Where a judgment has been obtained in The Court of Queen’s Bench of New Brunswick or in the Provincial Court and where the amount remaining due on the judgment exceeds the sum of eighty dollars, the party obtaining such judgment, hereinafter called the judgment creditor, may at any time thereafter attach and recover in the manner hereinafter provided, the whole or part of a debt or sum of money owing to the party against whom the judgment was obtained, hereinafter called the judgment debtor, from any other person, hereinafter called the garnishee, or sufficient of the debt or sum of money to satisfy the amount of the judgment, subject always to the rights of parties other than the judgment debtor to the debt or sum of money owing from the garnishee.
2(2)The provisions of this Act extend to all money or debts due to the judgment debtor from or by a foreign company doing business within this Province by an authorized agent, so far as it may be necessary to reach the money or effects of the company in the hands or under the control of such agent.
R.S., c.97, s.2; 1954, c.41, s.1; 1956, c.37, s.2; 1979, c.41, s.56; 2008, c.43, s.7
Application for attaching order
3(1)Application to a judge of The Court of Queen’s Bench of New Brunswick may be made ex parte by or on behalf of the judgment creditor, and either before or after an examination under the Arrest and Examinations Act, on affidavit that the judgment was recovered and when, and that the whole, or some part, and how much thereof, remains unpaid and unsatisfied, and that the deponent has reason to believe and does believe that some one or more parties, naming them, or stating that he is unable to name them, is or are within the Province, or in case of a foreign company, that such company is doing business within this Province by an authorized agent, as deponent believes, and naming such agent, or stating that he is unable to name him, and is or are indebted to or liable to pay a sum of money to the judgment debtor, and that it is necessary in the interest of justice that an attaching order should be issued, for an attaching order, in the prescribed form, which order said judge may make, if satisfied that it is necessary in the interest of justice that the same should be issued, stating therein that all debts or sums of money owing to the judgment debtor, or so much thereof, or certain of them, being such portion of said debts as he may in his discretion deem reasonable and proper, and stating in said order with sufficient certainty what debts or parts of debts he adjudges shall be attached.
3(2)Such attaching order may be served and has force in any county in the Province.
3(3)In no case shall garnishee issue on judgments obtained for debt, unless such judgment, independent of costs incurred in the suit, exceeds forty dollars.
R.S., c.97, s.4; 1960, c.36, s.2; 1979, c.41, s.56
Setting aside attaching order
4A judgment debtor or a garnishee may within twenty days after service of an attaching order apply to the judge who issued the same for a summons calling upon the plaintiff to show cause why the attaching order should not be set aside or altered as circumstances may require, or why the debt or debts attached should not be released or partially released, and may for that purpose contest the truth of the affidavits upon which the attaching order was obtained, or may show that the same is not in conformity with this Act, and the judge may make such order therein with or without costs as to him seems just.
R.S., c.97, s.5
Service of attaching order
5The service of an attaching order on a garnishee, shall have the effect, subject to the rights of other parties, of attaching and binding in his hands all debts and sums of money then owing from him to the judgment debtor, or sufficient thereof to satisfy the judgment, and a payment by the garnishee into the Court in which the judgment has been obtained, or on the order of a judge of The Court of Queen’s Bench of New Brunswick to the judgment creditor, of the debt or sums of money so attached, to the extent unsatisfied on the judgment, shall be a discharge to that extent of the debt or sum of money owing from the garnishee to the judgment debtor.
R.S., c.97, s.6; 1979, c.41, s.56
Liability of garnishee
6Any payment by the garnishee after service on him of the order, to anyone other than the judgment creditor, or into Court, to satisfy the said judgment, is, to the extent of the judgment creditor’s claim, void, and the garnishee, notwithstanding such payment, is liable to pay the same to the extent of the judgment creditor’s claim, if of sufficient amount, or if not, then to the extent of the debt or sum of money owing by the garnishee to the judgment debtor.
R.S., c.97, s.7
Appearance of garnishee before judge
7The judge of The Court of Queen’s Bench of New Brunswick, by the attaching order or by any subsequent order, may order that the garnishee appear before him, or before the clerk of The Court of Queen’s Bench of New Brunswick, to show cause why he should not pay the judgment creditor the debt or sum of money owing from him to the judgment debtor, or so much thereof as may be sufficient to satisfy the judgment debt.
R.S., c.97, s.8; 1973, c.74, s.36; 1979, c.41, s.56
Judgment against garnishee
8At the hearing under the said order, if the garnishee appears and does not dispute the debt or sum of money owing or claimed to be owing from him to the judgment debtor, or if the garnishee does not appear, then upon due proof by affidavit of the service of the order, and on sufficient proof by affidavit or oral evidence of the amount owing by the garnishee to the judgment debtor, and no sufficient cause appearing why it should not be paid and applied in satisfaction of the judgment, The Court of Queen’s Bench of New Brunswick judge or clerk may give judgment against the garnishee, in the prescribed form, for the amount so owing from him, or sufficient thereof to satisfy the judgment; and execution, in the prescribed form, without any previous writ or process may issue against the garnishee to levy the same if due, or when and as it becomes due, or at such later period as the judge or clerk of The Court of Queen’s Bench of New Brunswick may order, and the execution may, in the case of the order being made by the clerk issue out of The Court of Queen’s Bench of New Brunswick on the filing of such order.
R.S., c.97, s.9; 1973, c.74, s.36; 1979, c.41, s.56
Disputed liability by garnishee
9If the garnishee disputes his liability, The Court of Queen’s Bench of New Brunswick judge or clerk instead of giving judgment and making an order that execution shall issue, may order that the judgment creditor may proceed against the garnishee by summons, calling upon him to show cause why there should not be an execution against him for the alleged debt or sum of money due or claimed to be owing from him to the judgment debtor, and for costs of suit.
R.S., c.97, s.10; 1973, c.74, s.10; 1979, c.41, s.56
Service of summons on garnishee
10The summons last mentioned shall issue out of The Court of Queen’s Bench of New Brunswick sitting in the judicial district in which the garnishee resides or carries on business, and within whose jurisdiction the amount sought to be attached is cognizable, and a copy of such summons shall be duly served on the garnishee, or if joint garnishees, then on such of them as are within the Province, at the time and in the manner required for the service of mesne process out of the Court.
R.S., c.97, s.11; 1954, c.41, s.2; 1979, c.41, s.56
Defences available to garnishee and judgment debtor
11In all cases under this Act, the judgment debtor, the garnishee, and all other parties in any way interested in or affected by the proceedings, are entitled to set up any defence as between the judgment creditor and the judgment debtor that the latter would be entitled to set up in an ordinary suit, and also any defence as between the garnishee and the judgment debtor, and may also show any other just cause why the debt sought to be attached should not be paid over or applied in or towards the satisfaction of the claim of the judgment creditor.
R.S., c.97, s.12
Effect of judgment in favour of judgment creditor
12If judgment is given for the judgment creditor against the garnishee, the debt or sum of money attached, unless the judge otherwise orders, continues bound in the hands of the garnishee to satisfy the claim of the judgment creditor, and payment in such case by the garnishee of the debt to the extent of the claim, either into Court or to the judgment creditor on the order of the judge, is to that extent a discharge to the garnishee as between him and the judgment debtor; and any other payment thereof, except by leave of the judge or by agreement of the parties, is void, and the garnishee in such case is liable to pay the same again to satisfy the claim of the judgment creditor.
R.S., c.97, s.13
Costs of procedure
13(1)The garnishee is not liable for the costs of the proceeding unless and in so far only as occasioned by setting up a defence that he knew or ought to have known was untenable, which shall be determined by the judge.
13(2)The garnishee shall have his reasonable costs out of the sum in his hands, where he sets up no defence; and, subject to this provision, the costs of all the parties are in the discretion of the judge, who may make an order that execution issue for the same.
R.S., c.97, s.14
Judgment against garnishee
14Judgment shall not be given against the garnishee until the summons mentioned in section 9 with the affidavit of due service on the proper parties, is filed, unless the judge for special reasons orders otherwise.
R.S., c.97, s.15
Execution against garnishee
15No execution shall in any case issue to levy the money owing from any garnishee until and so far only as the money has become due, but execution may from time to time issue as such money becomes due.
R.S., c.97, s.16
Attaching order against garnishee
16(1)A party entitled to or interested in any money or debt attached or bound in the hands of the garnishee by a proceeding under this Act, may, at any time before actual payment thereof by the garnishee, apply to a judge of The Court of Queen’s Bench of New Brunswick for an order, after summons and hearing, to the effect that the money or debt be discharged from the claim of the judgment creditor, and thenceforth after such order the money or debt ceases to be attached or bound for such claim.
16(2)A like application and order may be made, if the judge thinks fit, after the money or debt has been paid over by the garnishee, in which case all parties shall be remitted to their original rights in respect thereto, except as against the garnishee having already paid such debt or money to the judgment creditor whose payment shall not be affected thereby, but shall be and remain an effectual discharge to him.
R.S., c.97, s.17; 1979, c.41, s.56
Security by judgment creditor
17(1)If the judge on the hearing of a summons under this Act, or on special application for the purpose, thinks proper, he may before giving judgment against the garnishee, or at any time before actual payment by the garnishee, order such security by bond to be given to the sheriff as is approved by himself, by or on behalf of the judgment creditor, for the repayment into Court, to abide the judge’s order in case a judge’s order is made for such repayment.
17(2)Such bond shall be to the sheriff by his name of office, and shall enure for the benefit of all parties interested in or entitled to the money, and may, by order of the judge and on such terms as to indemnity against costs and otherwise as he imposes, be assigned to the party or parties interested, and may be sued in the name of the assignee.
R.S., c.97, s.18
Third party claims to debt of garnishee
18If anyone other than the judgment creditor or judgment debtor claims to be entitled to the debt or sum of money owing from the garnishee, by assignment thereof or otherwise, the judge when adjudicating in any of the cases aforesaid, or by calling the proper parties before him by summons for the purpose, may enquire by affidavits or oral testimony into and decide upon such claim, and allow to give effect to it, or hold it void as against the judgment creditor for being a fraud upon creditors or otherwise as the justice of the case requires, and for such purpose he may require the attendance of such parties and such witnesses, their fees for attendance being first paid, as he thinks necessary.
R.S., c.97, s.19
Procedure at hearings
19The judge may postpone or adjourn from time to time the hearing and other proceedings in all garnishee cases, to allow time to give omitted notices of defence, to produce further evidence, to make service on and notice to other or additional parties, to amend all summonses, memoranda, claims, accounts, notices, and other papers and proceedings and copies thereof, or for any other purpose, as justice requires.
R.S., c.97, s.20
Discharge of garnishee
20Payment made by or execution levied upon the garnishee under this Act is a valid discharge to him as against the judgment debtor to the amount paid or levied, although the proceedings are afterwards set aside or the judgment reversed.
R.S., c.97, s.21
Death of garnishee
21Any debt or legacy due from or payable by an executor or administrator to the judgment debtor may be attached, and such executor or administrator in such case is liable to be treated as a garnishee.
R.S., c.97, s.22
Duties of executor of garnishee
22(1)If any person summoned as a garnishee in his own right dies before the judgment recovered by the judgment creditor is satisfied, the goods, effects and credits in his hands at the time of attachment are bound thereby, and his executor or administrator is liable therefor, but to no further extent than he would to the judgment debtor, as if the writ or attaching order had been originally served on them.
22(2)On service of a notice on such executor or administrator briefly stating the proceedings up to that time, the further proceedings shall be conducted as if the executor or administrator had been originally summoned as garnishee, and he may appear and contest as the original garnishee could have done, except that the examination of the deceased, if any had taken place, shall have the same effect as if he were living, and if such executor or administrator does appear, the proceedings shall be continued as if he had been originally garnishee.
R.S., c.97, s.23
Court orders against estate of garnishee
23If the executor or administrator does not within twenty days after service of such notice appear, the judgment creditor may apply to a judge of The Court of Queen’s Bench of New Brunswick for any order or orders, and for all such directions as to such judge appear necessary, to enable such creditor to perfect his garnishee process to satisfaction against such executor or administrator, as if he had been originally garnishee, and such judge may from time to time make all such orders and give all such directions as he considers necessary to secure such result.
R.S., c.97, s.24; 1979, c.41, s.56
Notices to judgment debtor
24(1)Notice of all proceedings under this Act against the garnishee shall be given to the judgment debtor, unless the judge giving judgment against the garnishee dispenses with such notice on satisfactory proof that the judgment debtor has absconded or keeps concealed for the purpose of avoiding the service of process, or for other good cause.
24(2)In no case shall any money found to be due from the garnishee to the judgment debtor be paid over to the judgment creditor unless the judgment debtor has had notice of the proceedings, or such notice has been dispensed with as above mentioned.
24(3)Where notice of the proceedings has not been given to the judgment debtor, security by bond from the judgment creditor shall be taken, as is mentioned in section 17.
R.S., c.97, s.25
General powers of judge
25When under this Act any other proceeding may in the opinion of the judge be necessary to enable the judgment creditor to perfect his remedy against the garnishee, or to protect the interest of the judgment debtor or garnishee, the judge may from time to time make such orders and give such directions as he deems best to secure such results.
R.S., c.97, s.26
Registration of attaching order
26(1)When any attaching order is made under any of the provisions of this Act, and the sum of money attached is secured by a mortgage or other instrument creating a lien upon real estate, the sheriff shall file a copy of the attaching order, certified by him to be a copy, in the office of the registrar of deeds for the county in which the said mortgage or other instrument creating the lien is registered.
26(2)Such attaching order takes effect from the time such copy is so filed, and from such time is valid and binding against any subsequent attaching order or attachment, or any bona fide assignee thereof, after the same is attached.
R.S., c.97, s.27
Registration of attaching order
27(1)The registrar shall indorse on such copy the day and hour he receives the same, and thereupon file the same in his office, and enter in his attachment book the names of the judgment creditor, judgment debtor, and garnishee, and the time when the copy of order was received by him.
27(2)The registrar is entitled to a fee of twenty cents for filing and entering as aforesaid, and twenty cents for every search in respect of such order.
R.S., c.97, s.28; 1987, c.6, s.33
Discharge of mortgage
28(1)Upon the garnishee paying to the judgment creditor or into Court, as aforesaid, any sum due and owing from him to the judgment debtor, and ordered to be paid to the judgment creditor, or into Court, as aforesaid, the judge, when such money is owing on any mortgage or other security upon real estate, upon being satisfied that such money has been paid, may, by order under his hand, direct the registrar to make an entry on the margin of the registry book, in which such mortgage or other security is registered, that the said mortgage or other security has been satisfied by payment of the amount thereof to the judgment creditor under garnishee process against him, if the whole amount of such security has been paid over, or if part only, that the same has been satisfied to the extent of the amount attached and paid, and such certificate of the judge shall be filed by the registrar as his authority for making such entry.
28(2)Before such entry or filing, an affidavit that the signature is the proper handwriting of the judge signing the same, shall be made before a commissioner for taking affidavits to be read in The Court of Queen’s Bench of New Brunswick, and such affidavit shall be filed with the judge’s certificate.
R.S., c.97, s.29; 1979, c.41, s.56
Form of appearance
29Appearance by a judgment debtor or garnishee shall be in like manner as is now required in mesne process.
R.S., c.97, s.30
Trial by jury
30When any hearing is by this Act directed to be had before a judge of The Court of Queen’s Bench of New Brunswick, or clerk of The Court of Queen’s Bench of New Brunswick, if in his opinion the liability of the garnishee would be better determined before a jury, he may make an order for that purpose, and by such order, or by any subsequent order, direct in what manner the same shall be so submitted for the consideration of a jury.
R.S., c.97, s.31; 1973, c.74, s.36; 1979, c.41, s.56
Exemption for wages of judgment debtor
31Wages due the judgment debtor for his personal labour and services on a hiring are exempt from garnishment.
R.S., c.97, s.33; 1960, c.36, s.3; 1971, c.36, s.1
Exemptions for garnishee
32No person shall be adjudged a garnishee in any of the cases following:
(a) by reason of having drawn, accepted, made or endorsed any negotiable bill, draft, note or other negotiable security, when either is payable on time and is not overdue;
(b) by reason of any money or other thing due from such garnishee to the judgment debtor, unless it is due absolutely and without depending on any contingency;
(c) by reason of any money in his hands as an officer or servant of the Crown, or otherwise in the employment of Her Majesty, due or payable by the Crown to any individual, and given to any such officer, servant or employee for that purpose.
R.S., c.97, s.34
Rules of Court
33(1)The Court of Queen’s Bench of New Brunswick may make any Rules of Court deemed necessary to carry out the provisions of this Act; and all Rules of Court heretofore made and in force at the date of the passing of this Act, shall, upon the passage hereof, except in so far as such rules may be inconsistent with or repugnant to the provisions of this Act or any other Act, continue in force, but The Court of Queen’s Bench of New Brunswick may amend or rescind such rules, or any of them, as may be deemed necessary.
Regulations
33(2)The Lieutenant-Governor in Council may make regulations prescribing
(a) forms required under this Act; and
(b) a table of fees applicable to proceedings under this Act.
R.S., c.97, s.35; 1973, c.74, s.36; 1979, c.41, s.56; 1987, c.6, s.33
N.B. This Act is consolidated to December 19, 2008.