Bill Text: MI HB4119 | 2015-2016 | 98th Legislature | Introduced
Bill Title: Civil procedure; garnishment; garnishment of periodic payments; revise procedure. Amends sec. 4012 of 1961 PA 236 (MCL 600.4012). TIE BAR WITH: HB 4120'15
Spectrum: Partisan Bill (Republican 7-0)
Status: (Passed) 2015-04-15 - Assigned Pa 14'15 With Immediate Effect [HB4119 Detail]
Download: Michigan-2015-HB4119-Introduced.html
HOUSE BILL No. 4119
January 29, 2015, Introduced by Reps. Garcia, Iden, Pagel, McCready, Leutheuser, Poleski and Webber and referred to the Committee on Commerce and Trade.
A bill to amend 1961 PA 236, entitled
"Revised judicature act of 1961,"
by amending section 4012 (MCL 600.4012), as amended by 2012 PA 304.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
4012. (1) Except for garnishment of a tax refund under
section
4061a or garnishment of wages, salary, commissions, or
other
earnings, and subject to subsection (2), a A writ of
garnishment
of periodic payments remains in effect for the period
prescribed
by the Michigan court rules. A writ of garnishment of
wages,
salary, commissions, or other earnings remains in effect for
182
days.until the balance of the
judgment is satisfied.
(2)
A garnishee is not liable for a writ of garnishment of
periodic
payments under subsection (1) to
the extent that the
garnishee is required to satisfy another writ of garnishment
against the same defendant having a higher priority or having the
same priority but received at an earlier date. For purposes of this
subsection, writs of garnishment have priority in the following
order:
(a) A garnishment resulting from an obligation of court
ordered support as defined in section 2 of the support and
parenting time enforcement act, 1982 PA 295, MCL 552.602.
(b) A levy of the state or a governmental unit of the state to
satisfy a tax liability.
(c) Any other garnishments, in the order in which they are
served.
(3) If a garnishment is suspended pursuant to an order under
section 6201 and the order is subsequently set aside, the
garnishment retains its priority.
(4) A writ of garnishment is not valid or enforceable unless
the writ is served on the garnishee in accordance with the Michigan
court rules.
(5) While a writ of garnishment is in effect, the plaintiff
shall do both of the following:
(a) At least once every 6 months after the plaintiff receives
the first payment under the garnishment, provide to the garnishee
and defendant a statement setting forth the balance remaining on
the judgment, including interest and costs. A failure to send a
timely statement under this subdivision does not affect the
garnishment or any obligation of the garnishee under the
garnishment.
(b) Within 14 days after the balance of the judgment has been
paid in full, including all interest and costs, provide to the
garnishee and defendant a release of garnishment.
(6) A plaintiff shall not request that a default be entered
against a garnishee under a garnishment unless both of the
following apply:
(a) If the garnishee fails to file a disclosure within 14 days
after service of a writ of garnishment or fails to perform any
other required act, the plaintiff has served on the garnishee a
notice of failure setting forth the required act or acts that the
garnishee has failed to perform.
(b) The garnishee has failed, within 28 days after the date of
service of the notice of failure under subdivision (a), to cure the
identified failure by mailing to the plaintiff and defendant a
disclosure certifying that the garnishee has begun to withhold any
available money pursuant to the writ of garnishment as provided by
statute or court rule, or has commenced performing any other
required act.
(7) The plaintiff shall attach to a request for entry of a
default as allowed under subsection (6) proof of serving the notice
of failure. The plaintiff shall send a copy of the request for
entry of a default by certified mail to the garnishee at the
garnishee's principal place of business or registered agent.
(8) After entry of a default under subsection (6) and before
entry of a default judgment, the garnishee may cure the identified
failure by mailing to the court, plaintiff, and defendant a
disclosure certifying that the garnishee has begun to withhold any
available money pursuant to the writ of garnishment as provided by
statute or court rule or that it has commenced performing any other
required act.
(9) After a default has been entered under subsection (6), the
plaintiff may file with the court a request for default judgment
for an amount that does not exceed the full amount of the unpaid
judgment, interest, and costs, as stated in the request and writ
for garnishment. The plaintiff shall send a copy of the request for
default judgment by certified mail to the garnishee at the
garnishee's principal place of business or resident agent.
(10) On motion of the garnishee filed within 21 days after
entry of a default judgment under subsection (9), the court shall
do 1 or more of the following, as applicable:
(a) If the garnishee certifies by affidavit that its failure
to comply with the writ of garnishment was inadvertent or caused by
an administrative error, mistake, or other oversight and it has
begun to withhold any available money pursuant to the writ of
garnishment as provided by statute or court rule, reduce the
default judgment to not more than the amount that would have been
withheld if the writ of garnishment had been in effect for 56 days.
(b) If any of the following circumstances exist, set aside the
default judgment:
(i) The garnishee was not liable to the defendant for any
periodic payments after service of the writ of garnishment.
(ii) The writ of garnishment, notice of failure, request for
entry of a default, or request for default judgment was not
properly served or sent as required by this section.
(iii) The notice of failure was materially inaccurate or
incomplete.
(11) A garnishee may recover an amount for which the garnishee
is liable because of the entry of a default judgment under
subsection (9) or (10) from future periodic payments to the
defendant as provided in section 7 of 1978 PA 390, MCL 408.477.
(12) (3)
Except as otherwise provided by
statute, a plaintiff
shall
pay a fee of $6.00 $35.00 to
the garnishee at the time a writ
to
the garnishee of garnishment of
periodic payments is served upon
on the garnishee.
(13) As used in this section, "garnishment" means any court
order directed to a third party to withhold periodic payments.
(14) (4)
As used in this section and section
8410a, "periodic
payments" means wages, salary, commissions, and other earnings,
land contract payments, rent, and other periodic debt or contract
payments that are or become payable during the effective period of
the writ of garnishment. Periodic payments do not mean any of the
following:
(a) Payments by a financial institution of interest on a
deposit account.
(b) Charges made by a financial institution automatically
against
an account which applies that
are applied to a debt under
an automatic payment authorization executed by the account owner.
(c) Payments made by a financial institution to honor a check
or draft or to comply with an account holder's order of withdrawal
of funds from an account.
(d) Interest earned on a certificate of deposit that is paid
into a deposit account.
Enacting section 1. This amendatory act applies to a writ of
garnishment issued 90 days after the date this amendatory act is
enacted into law.
Enacting section 2. This amendatory act does not take effect
unless Senate Bill No. ____ or House Bill No. 4120 (request no.
01249'15) of the 98th Legislature is enacted into law.