James O'hagan v. Joseph Field, Etc. ( 2015 )

FILED
COURT OF APPEALS
DIVISION II
2015 MAY 19 AM 9: 07
ST 0 WASHINGTON
BY
IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON
DIVISION II
JAMES J. O' HAGAN, No. 47078 -1 - II
Appellant,
v.
JOSEPH FIELD and FIELD JERGER, LLP, UNPUBLISHED OPINION
Respondents.
WORSwIcK, J. — The law firm Joseph Field and Field Jerger, LLP (Field) obtained
Oregon judgments for attorney fees against James O' Hagan. Field then issued a writ of
garnishment against Ocean Spray Cranberries Inc., an agricultural cooperative. O' Hagan,
appearing pro se, filed with the Supreme Court a writ of review challenging the superior court' s
order to pay on Ocean Spray' s answer to Field' s writ of garnishment. The Supreme Court
transferred O' Hagan' s challenge to us for consideration as an appeal. O' Hagan argues the
superior court erred by ( 1) refusing to transfer venue to Pacific County, ( 2) giving the Oregon
judgments full faith and credit, ( 3) entering the order to pay on the answer without a jury trial,
4) failing to exempt 75 percent of Ocean Spray' s payments from garnishment under RCW
No. 47078 -1 - II
6. 27. 150( 1), and ( 5) not allowing O' Hagan " supplemental proceedings" under chapter 6. 32
RCW. 1 We reject O' Hagan' s arguments and affirm.2
FACTS
Field represented O' Hagan as a creditor in an Oregon bankruptcy proceeding. For
attorney fees incurred representing O' Hagan, Field obtained Oregon judgments against O' Hagan
totaling $39, 671. 12. To collect on these judgments, Field issued a writ of garnishment against
Ocean Spray Cranberries Inc., an agricultural cooperative. Ocean Spray Cranberries, Inc. v.
PepsiCo, Inc., 160 F.3d 58, 59 ( 1st Cir. 1998); see 7 U.S. C. 291.
Ocean Spray issued an answer to the writ of garnishment. The answer stated that it did
not employ O' Hagan but that it owed O' Hagan money for his cranberry deliveries. The answer
listed one future payment approved by Ocean Spray' s board of directors and estimated four
future payments that the board had yet to approve, for a total of $26, 775. 95. One of the
estimated future payments included an expected payment for July 10, 2013 of $1, 187. 55. Field
moved the Grays Harbor County Superior Court for an order to pay on Ocean Spray' s answer.
O' Hagan requested a controversion hearing to determine " whether an issue is presented that
requires a trial." RCW 6. 27. 220.
1 Field did not file a respondent' s brief in this case.
2 We note at the outset-that the record in this case is not complete. The record contains the
verbatim report of proceedings and a set of clerk' s papers, but the clerk' s papers do not contain
many of the documents necessary to address O' Hagan' s arguments. In the interest ofjustice, we
consider O' Hagan' s claims despite the insufficient record. RAP 1. 2( c); Wachovia SBA Lending,
Inc. v. Kraft, 165 Wash. 2d 481, 487, 200 P.3d 683 ( 2009). Our consideration of O' Hagan' s claims
necessarily requires us to review documents which O' Hagan initially filed with our Supreme
Court.
2
No. 47078 -1 - II
At the controversion hearing, O' Hagan demanded a jury trial. O' Hagan also challenged
venue, arguing•that because he resided in Pacific County, it was the only proper venue. O' Hagan
also argued that 75 percent of the money garnished from Ocean Spray was exempt from
garnishment as " earnings" under RCW 6. 27. 150( 1). O' Hagan also alleged that Ocean Spray' s
answer underestimated the July 10, 2013 future payment, stating it was $ 1, 187. 55 when it should
have been $ 10, 687. 95. O' Hagan alleged that this underestimation occurred because he produced
1, 187. 55 barrels of cranberries, which the answer incorrectly entered as $ 1, 187. 55.
O' Hagan argued in the superior court that Field fraudulently misreported the Oregon
judgments' amount to a credit reporting agency. But O' Hagan did not assert that Field
misreported the judgments' amount to the superior court.
O' Hagan made numerous other claims unrelated to the garnishment action. These were
mostly allegations of criminal acts related to the bankruptcy proceedings. O' Hagan requested
supplemental proceedings under RCW 6. 32 to subpoena witnesses to address issues unrelated to
the garnishment action before the superior court.
The superior court did not consider O' Hagan' s collateral claims, but considered only
those claims related to the writ of garnishment. The superior court entered an order to pay on
garnishee' s answer, which required Ocean Spray to pay Field the $ 26, 775. 95 Ocean Spray owed
O' Hagan. The order also denied O' Hagan' s request for a jury trial and the 75 percent exemption
under RCW 6. 27. 150( 1). 3
3
The order stated it denied O' Hagan' s request for a " protection order." Clerk' s Papers at 128.
This apparently referenced the 75 percent exemption under RCW 6. 27. 150( 1), which O' Hagan
called " protection." VRP (July 22, 2013) at 28. But we cannot be sure because O' Hagan
requested " protection" in other contexts.
3
No. 47078 -1 - II
O' Hagan filed a writ for review to our Supreme Court pursuant to RCW 7. 16. 040. In this
writ for review, O' Hagan asserted his claim that Ocean Spray erroneously estimated the July 10,
2013 future payment as $ 1, 187. 55. O' Hagan also filed a motion to stay proceedings pending
appeal pursuant to RCW 7. 16. 080. The Supreme Court denied the motion to stay and transferred
this case to us. 4
ANALYSIS
I. VENUE
O' Hagan argues the superior court erred by not transferring venue from Grays Harbor
County to Pacific County because O' Hagan resided in Pacific County. We disagree. 5
We review de novo a ruling on a motion to transfer venue whenever that motion was
based upon the defendant' s assertion the original venue was not statutorily authorized. Moore v.
Flateau; 154 Wn. App. 210, 214, 225 P.3d 361 ( 2010). Because O' Hagan argues that no statute
authorized venue in Grays Harbor County, our review is de novo.
RCW 4. 12. 030( 1) authorizes the court to change venue on motion if "it appears by
affidavit, or other satisfactory proof' the county which the complaint designates is an improper
venue. RCW 4. 12. 025( 1) states in part:
An action may be brought in any county in which the defendant resides, or, ifthere
be more than one defendant, where some one of the defendants resides at the time
4 O' Hagan refers to his opening brief as a supplemental opening brief and asks us to consider an
earlier opening brief. We do not consider O' Hagan' s earlier opening brief because the Supreme
Court rejected it prior to transferring this case to us.
5 O' Hagan refers to this as a " jurisdiction" argument but his challenge is actually to venue. See
Eubanks v. Brown, 170 Wash. App. 768, 772, 285 P.3d 901 ( 2012), aff'd, 180 Wash. 2d 590, 327
P.3d 635 ( 2014).
4
No. 47078 -1 - II
of the commencement of the action. [ T] he residence of a corporation defendant
shall be deemed to be in any county where the corporation: ( a) Transacts business.
Emphasis added.) Before a court may transfer venue, the party moving to change venue must
show by affidavit or other satisfactory proof that the county designated in the complaint was
improper. RCW 4. 12. 030( 1). As garnishee, Ocean Spray was a defendant in this case. See
Watkins v. Peterson Enters., Inc., 137 Wash. 2d 632, 638, 973 P.2d 1037 ( 1999). Because RCW
4. 12. 025( 1) requires only one defendant to be a resident of the county, O' Hagan had to show by
affidavit or other satisfactory proof that Ocean Spray was not a resident of Grays Harbor County
in order to show Grays Harbor County was an improper venue.
Here, O' Hagan failed to show, or even argue, that Ocean Spray was not a Grays Harbor
County resident. Thus, O' Hagan failed to provide satisfactory proof the county designated in the
complaint was improper, and the superior court did not err by not transferring venue.
II. FULL FAITH AND CREDIT TO THE OREGON JUDGMENTS
O' Hagan argues the superior court erred by giving full faith and credit to the Oregon
judgments. We disagree.
We review constitutional issues de novo. Citizens Protecting Res. v. Yakima County, 152
Wn. App. 914, 919, 219 P.3d 730 ( 2009). The United States Constitution requires the states to
give full faith and credit to every other state' s judicial proceedings. U. S. CONST. art. IV, § 1.
This rule "`` provides a means for ending litigation by putting to rest matters previously decided
between adverse parties in any state or territory of the United States.'" State v. Berry, 141
Wash. 2d 121, 127, 5 P.3d 658 ( 2000) ( quoting In re Estate of Tolson, 89 Wash. App. 21, 29, 947
P.2d 1242 ( 1997)).
5
No. 47078 -1 - II
A foreign judgment may be collaterally attacked only on grounds that the foreign court
lacked jurisdiction, the foreign court violated a constitutional right, or the judgment was obtained
by fraud. Berry, 141 Wash. 2d at 127 -28; Effert v. Kalup, 45 Wash. App. 12, 15, 723 P.2d 541
1986). Absent these grounds, we must give full faith and credit to the foreign judgment. Berry,
141 Wash. 2d at 128; Lee v. Ferryman, 88 Wn. App. 613, 620, 945 P.2d 1159 ( 1997). " The full
faith and credit clause of the Constitution precludes any inquiry into the merits of the cause of
action, the logic or consistency, of the decision, or the validity of the legal principles on which
the judgment is based." Milliken v. Meyer, 311 U.S. 457, 462, 61 S. Ct. 339, 85 L. Ed. 278
1940).
Here, while O' Hagan raised jurisdictional, constitutional, and fraud claims below, none
of those claims challenged the underlying Oregon judgments' validity. O' Hagan asserted that
proper procedures were not followed" and that the Oregon judgments were obtained by an
unfair and bias[ ed] process," but provided no explanation of these allegations below or on
appeal. Clerk' s Papers at 5, 42. O' Hagan argued below that Field fraudulently misreported the
Oregon judgments' amount to a credit reporting agency. But O' Hagan did not assert that Field
misreported the Oregon judgments' amount to the superior court. Thus, because O' Hagan made
no jurisdictional, constitutional, or fraud challenge to the underlying Oregon judgments, the
superior court did not err by giving the Oregon judgments full faith and credit.
III. CONTROVERSION
O' Hagan argues the superior court erred by ordering payment on the answer to .the writ of
garnishment without a jury trial. Because no trial was required, we disagree.
6
No. 47078 -1 - II
Whether the controversion hearing sufficiently established Ocean Spray' s indebtedness to
O' Hagan to allow the entry of an order to pay on the answer without a trial is a mixed question
of law and fact. We review mixed questions of law and fact de novo. In re Estate of Cordero,
127 Wash. App. 783, 787, 113 P.3d 16 ( 2005).
The garnishment statute' s purpose is to enforce a debtor' s obligations. See RCW
6. 27. 005. Although a garnishment proceeding is ancillary to the principal suit between a creditor
and a debtor, it is adversarial in nature because the creditor takes action against the garnishee to
satisfy a claim against the debtor. Watkins, 137 Wash. 2d at 638 -39. Once a judgment creditor
obtains a writ of garnishment, the garnishee must answer the writ. See RCW 6. 27. 190; Bartel v.
Zucktriegel, 112 Wn. App. 55, 65, 47 P.3d 581 ( 2002). In its answer, the garnishee must provide
information about the funds or property of the debtor in its control and the amount it owed the
debtor when the writ is served. See RCW 6. 27. 190. After the garnishee has answered the writ,
the judgment creditor or defendant debtor may file an affidavit controverting the garnishee' s
answer. RCW 6. 27.210. The garnishee may then file an affidavit responding to the
controverting affidavit. RCW 6. 27.220.
After the time for the garnishee' s response expires, any party may note the matter for a
controversion hearing before a commissioner or presiding judge " for a determination whether an
issue is presented that requires a trial." RCW 6. 27. 220. " If a trial is required, it shall be noted as
in other cases." RCW 6. 27.220. If a trial is not required, then the superior court may dispose of
the controversion in whatever appropriate manner. See Bassett v. McCarty, 3 Wash. 2d 488, 499-
500, 101 P.2d 575 ( 1940). For a party to be entitled to a trial, he or she must produce affidavits
7
No. 47078 -1 - II
or other competent evidence raising facts that, if established, would allow the party to prevail.
See 3 Wash. 2d at 499.
O' Hagan' s only factual challenge related to the garnishment action was his allegation that
Ocean Spray erroneously estimated a future payment at $ 1, 187. 55 when the correct amount was
10, 687. 95. But O' Hagan provided the superior court no affidavits or other evidence to support
this factual allegation. Thus, we hold that because O' Hagan did not produce affidavits or other
competent evidence raising facts that, if established, would allow him to prevail, the superior
court did not err by entering the order to pay based on the hearing and without a trial.
IV. GARNISHMENT EXEMPTION FOR EARNINGS
O' Hagan argues 75 percent of the proceeds garnished from Ocean Spray were exempt
from garnishment because the proceeds were earnings under RCW 6. 27. 150( 1). We disagree.
We review statutory interpretation de novo. Dot Foods, Inc. v. Dep' t ofRevenue, 166
Wash. 2d 912, 919, 215 P.3d 185 ( 2009). When interpreting a statute, our " fundamental objective
is to ascertain and carry out the Legislature' s intent." Dep' t of Ecology v. Campbell & Gwinn,
LLC., 146 Wash. 2d 1, 9, 43 P.3d 4 ( 2002). Where a statute' s meaning is plain on its face, we give
effect to that meaning " as an expression of legislative intent." 146 Wash. 2d at 9 -10.
RCW 6. 27. 150( 1) states:
I] f the garnishee is an employer owing the defendant earnings, then for each week
of such earnings, an amount shall be exempt from garnishment which is the greatest
of the following:
b) Seventy -five percent of the disposable earnings of the defendant.
Emphasis added.) RCW 6. 27. 010( 1) states in part:
8
No. 47078 -1 - II
As used in this chapter, the term " earnings" means compensation paid or payable
to an individual for personal services.
Emphasis added.)
Here, Ocean Spray stated in its answer to the writ of garnishment that Ocean Spray did
not employ O' Hagan. Thus, Ocean Spray is not O' Hagan' s " employer" under RCW
6. 27. 150( 1). The proceeds from Ocean Spray are compensation for O' Hagan' s cranberry
deliveries, not for his personal services. Thus, the garnished proceeds were not " earnings" under
RCW 6. 27. 150( 1). Because Ocean Spray was not O' Hagan' s employer and the proceeds from
Ocean Spray were not " earnings," Ocean Spray' s garnished proceeds were not subject to RCW' s
6. 27. 150( 1)( b)' s 75 percent exemption.
V. SUPPLEMENTAL PROCEEDINGS
O' Hagan argues the superior court erred by denying his motion to initiate supplemental
proceedings to address issues unrelated to the garnishment action before the superior court. We
disagree.
Washington law offers several alternatives for a judgment creditor to enforce a judgment
against his or her debtor, when that debtor either is not paying willingly or is taking steps to
avoid payment. One alternative is garnishment under chapter 6. 27 RCW. Another is
supplemental proceedings under chapter 6. 32 RCW, which allows a creditor to move for an order
to compel the judgment debtor to appear in court.
RCW 6. 32. 010 states in part:
At any time within ten years after entry of a upon application by the
judgment ...
judgment creditor such court or judge may, by an order, require the judgment debtor
to appear at a specified time and place before the judge granting the order ... to
answer concerning the same.
9
No. 47078 -1 - II
RCW 6. 32. 030 states in part:
Any person may be made a party to a supplemental proceeding by service of a. like
order in like manner as that required to be served upon the judgment debtor, and
upon proof by affidavit or otherwise, to the satisfaction of the judge, that execution
has been issued and return made thereon wholly or partially unsatisfied, and also
that any person or corporation has personal property of the judgment debtor ... or
is indebted to him or her in said amount, or is holding the title to real estate for the
judgment debtor, or has knowledge concerning the property interests of the
judgment debtor.
Emphasis added.) " The purpose of [supplemental] proceedings is to make the judgment debtor
answer concerning the extent and whereabouts of his or her property and, if possible, to enable
the judgment creditor to locate nonexempt property belonging to the judgment debtor which may
be applied on the debt." Rainier Nat' l. Bank v. McCracken, 26 Wash. App. 498, 511, 615 P.2d 469
1980). Accordingly, only judgment creditors may initiate and bring third parties into
supplemental proceedings. RCW 6. 32. 010; see RCW 6. 32. 030 ( requiring proof that execution of
a judgment " has been issued and return made thereon wholly or partially unsatisfied" before
making an individual a party to supplemental proceedings). A party must provide an adequate
factual basis to initiate or make an individual a party to supplemental proceedings. See Seventh
Elect Church in Israel v. Rogers, 34 Wash. App. 105, 112, 660 P.2d 280 ( 1983).
Here, O' Hagan requested supplemental proceedings to address issues unrelated to the
garnishment action before the superior court. O' Hagan was not a creditor in the garnishment
action actually before the superior court: he was a debtor. Only creditors may request
supplemental proceedings. Thus, O' Hagan was not entitled to supplemental proceedings in the
garnishment action before the superior court.
10
No. 47078 -1 - II
VI. OTHER ARGUMENTS
O' Hagan makes numerous other arguments on appeal that have no relationship to the
garnishment action before the superior court. Because these issues were not properly before the
superior court, we do not consider them. See W.R. Grace & Co. v. Dep' t ofRevenue, 137 Wash. 2d
580, 592, 973 P.2d 1011 ( 1999); Dep' t ofEcology v. Acquavella, 131 Wash. 2d 746, 760, 935 P.2d
595 ( 1997); Mount Vernon v. Cochran, 70 Wash. App. 517, 527, 855 P.2d 1180 ( 1993).
We affirm.
A majority of the panel having determined that this opinion will not be printed in the
Washington Appellate Reports, but will be filed for public record in accordance with RCW
2. 06. 040, it is so ordered.
We concur:
11