T & C Leasing, Inc. v. Wachovia Bank
23 A.3d 440
| N.J. Super. Ct. App. Div. | 2011Background
- T & C Leasing obtained a default judgment against IEC and Braman for $75,783.52 in September 2008.
- A writ of execution with a levy rider directed the sheriff to levy on IEC’s bank accounts at any bank in the county.
- April 20, 2009 levy on Wachovia bank account restrained $1,890.82; sheriff’s affidavit noted a total CER balance of $1990.82 and included a generic statement about 'due or to become due'.
- December 18, 2009, turnover order directed Wachovia to pay $1,890.82; Wachovia complied on December 24, 2009.
- T & C later discovered $80,982.73 deposited into IEC account after levy; Braman made checks from the account.
- T & C filed suit alleging Wachovia violated the execution statutes by paying funds deposited post-levy; both sides moved for summary judgment; trial court ruled for Wachovia.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether a post-judgment bank account levy creates a continuing lien | T & C argues the levy creates ongoing restraint under Article 7. | Wachovia contends the levy is fixed in time under 2A:17-15, not a continuing lien. | No continuing lien; levy fixed at service date. |
| Whether funds deposited after service are subject to turnover or garnishment | T & C contends post-levy deposits remain subject to levy as rights/credits. | Wachovia argues such funds are not subject to continuing restraint absent further writs. | Deposits after service are not restrained unless a continuing lien exists. |
Key Cases Cited
- Deakman v. Odd Fellows Hall Ass'n, 11 N.J. Misc. 646 (1933) (early authority on levy against debtor’s funds in bank accounts)
- Moran v. Joyce, 125 N.J.L. 558 (1941) (rights and credits levied as personal property; broad concept of chattels)
- Cohen v. Cohen, 126 N.J.L. 605 (Sup. Ct. 1941) (levy on rights/credits; assessing liquidity and certainty for levy)
- Vineland Sav. & Loan v. Felmey, 12 N.J.Super. 384 (Ch. Div. 1950) (bank deposits as subject to levy; chose in action concept)
- Am. Express Co. v. Vella, 94 N.J.Super. 258 (App. Div. 1967) (savings accounts as levyable rights/credits)
- Pagano v. United Jersey Bank, 143 N.J. 220 (1996) (bank deposit relationship; debtor/creditor framing for garnishment)