Smith v. Akers

By JUDGE RANDALL G. JOHNSON

This case is before the court to determine the sufficiency of a garnishee’s answer to a garnishment summons. At issue is whether funds held by the garnishee are reachable by the judgment creditor notwithstanding the garnishee’s claim that it has a perfected security interest in, as well as a common law and contractual right to set-off against, those funds.

For purposes of this opinion, the relevant facts1 are that on September 9, 1988, Premnet Consulting,, Ltd., one of the judgment debtors herein, obtained a revolving line of credit in the amount of $75,000 from…