Rock Island Lumber & Manufacturing Co. v. Fourth National Bank

Citations

• 63 Kan. 768
• 66 P. 1024
• 1901 Kan. LEXIS 225

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>1. Garnishment — Duty of Garnishee in Answering. It is the duty of one summoned in garnishment, holding property in the name of the defendant debtor, but having notice of the claim of a third party to the same, to disclose, by its answer, the name and post-office address of such claimant, the fact,-that such claim is made, ana the nature of such claim so far as known to the garnishee, in order that such claimant may be interpleaded and the garnishee be relieved from liability by delivery of the property to the officers of the court, as provided by statute.</p> <p>2. -Bankas Garnishee — Third Party Claimant — Bank Estopped. When a bank, summoned as garnishee, has money deposited by the defendant debtor, and has notice of the claim of third party thereto, and flies its answer denying all liability as garnishee, without making disclosure of the facts, and the plaintiff elects to take issue on such answer, the bank, if it be disclosed upon the 'trial that it had such money on deposit at the time of the service of the summons in garnishment, will not be permitted to defend or escape liability upon the ground that some tflird party is entitled to the property; nor will a judgment of liability to plaintiff in the garnishment proceeding, and'satisfaction thereof, afford the garnishee protection from the demand of a known claimant to the fund.</p> <p>3. -When Judgment against Garnishee is a Pelease. A judgment against a garnishee, and satisfaction thereof, will afford the garnishee full protection against all third parties claiming the fund in the hands of the garnishee at the time of the service of summons in garnishment, of whose claim the garnishee had no knowledge, and will also afford protection against all third parties, who, knowing the property claimed by them has been arrested in the hands of the garnishee, fail to assert their rights thereto by interpleading in the garnishment proceedings.</p>