Chase Manhattan Bank v. LaFray

Pope, Senior Appellate Judge.

We granted the Chase Manhattan Bank’s discretionary appeal of a state court’s order denying its motion to set aside a default judgment in this complex garnishment case. The issue turns on the effect of a stay granted by the trial court in the second of two garnishment proceedings.

Kenneth C. LaFray sued Scott Crownover and obtained a money judgment. LaFray then filed a garnishment proceeding (the “first garnishment proceeding”) naming Crownover as defendant and Crownover’s employer, Atlantic Mutual Insurance Company, as the garnishee, seeking to collect on the…