ARIZONA HOUSE OF REPRESENTATIVES

HB 2230: writ of garnishment; certified mail

PRIME SPONSOR: Representative Allen J, LD 15

BILL STATUS: Transmitted to Governor

Overview

Allows a judgment creditor to serve a writ of garnishment by certified mail.

History

At the conclusion of litigation, a court may order one or both parties to pay a sum of money to the other party. This is called a money judgment. This existence of a money judgment creates a judgment creditor and a judgment debtor. A judgment creditor is a person owed an outstanding money judgment (A.R.S. § 12-1570 (4)). A judgment debtor is a person who owes an outstanding money judgment (A.R.S. § 12-1570 (5)).

Garnishment is a process whereby a judgment creditor can collect money or property belonging to a judgment debtor from a third party, also known as a garnishee (A.R.S. §§ 12-1570.01). To initiate garnishment, the judgment creditor must apply to the court, identifying a garnishee, how much the judgment debtor owes, and how much of the judgment debtor's money or property the garnishee possesses (A.R.S. § 12-1572). The judgment creditor must also submit to the court a bond in the amount of the alleged debt (A.R.S. § 12-1573). The court then issues a writ of garnishment and a summons ordering the garnishee to appear in court and to tell the court, among other things, how much of the judgment debtor's money or property the garnishee possesses (A.R.S. §§ 12-1574, 12-1579). The judgment creditor must serve the writ and summons on the garnishee pursuant to the court's rules for serving a summons (A.R.S. §12-1574 (C)). The garnishee must give a copy of the writ and summons to the judgment debtor.

In both the Superior Court and Justice Court, a party must serve a summons to a person inside Arizona through a law enforcement officer or process server (Ariz. R. Civ. P. 4(d), JCRCP 113(a)). In both courts, a party may serve a summons by certified mail if the recipient is outside Arizona but within the United States (Ariz. R. Civ. P. 4.2(c), JCRCP 113(d)).

A writ of garnishment served on a financial institution is only effective to garnish money or property located at branches within the county where service is made (A.R.S. § 12-1577).

Provisions

1. Permits a judgment creditor to serve a writ of garnishment and associated summons by certified mail, return receipt requested (Secs. 1–2).

2. Specifies that the effective date of service by certified mail is the date of receipt (Secs. 1–2).

3. Permits a judgment creditor to serve a writ of garnishment on a financial institution, other than a trust company or title insurance company, by certified mail at the institution's regular place of business (Sec. 2).

4. Allows a writ of garnishment served on a financial institution to be effective regarding money and property located at branches outside the county of service (Sec. 2).

5. Permits a judgment creditor to serve a writ of garnishment through the garnishee's statutory agent or at a location designated by the garnishee (Sec. 2).

6. Removes the requirement that a sheriff, constable, or any other officer summon the garnishee to appear before the court (Sec. 1).

7. Makes technical and conforming changes (Secs. 1–2).

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11. Fifty-fourth Legislature                       HB 2230

12. First Regular Session                            Version 4: Transmitted

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