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D//" B^"˜HP LaserJet 4Si/4SiMX PS 600dpiPSCRIPTÀÌÀääÀÀÌ0†, øð AZ‹"Arial RegularX(ÓH=$¡¡Ñ  ÑÒH°ÒÒ°ÒÑTR[  AØ'ÿ Legal[  AØ'ÿ Legal AØ'ÿ Legal AØ'ÿ LegalTÑÔ€XÎ_XXXÔÑ7€¾úXXdðXXdð7Ñv‡d XN,Nhd3|xJ(ï(3Æ–$¤¤Ý ƒH=!ÝÑ  ÑÒH°ÒÒ°ÒÑTR[¤ AØ'ÿ Legal3Ø' AØ'ÿ Legalÿ3Ø'TÑÔ€X™XXXÔÑ7€™XXdædæ7ÑÝ  Ýà ` àòòÚ  Ú0Ú  Úóó(#Ã$òòÚ  Ú0Ú  ÚóóHŒô`Œ„ hÔL<Ôô( $L ô2 ÿÿ0Indent1Ô2ÔÔ3  ÔÈJ73Ø'ð Èÿÿÿÿ$$TÄÔô¨ÐÔô´Ð´2" ÿÿ0Indent2à0 àÔ2ÔÔ3  Ô2, ÿÿ0Indent3à0 àà0 àÔ2ÔÔ3  Ô26 ÿÿ0Indent4à0 àà0 àà0 àÔ2ÔÔ3  Ô<Ó€H2@ ÿÿ0Indent5à0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2J ÿÿ0Indent6à0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2T ÿÿ0Indent7à0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2^ ÿÿ0Indent8à0 àà0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô  ÿÿ?AGMSYaioIndent0I.A.1.a.(1)(a)i)a)< Œ 9p`(ModernP ÿÿ8Mac DefaultMac DefaultÓ ` °šXÓ< Œ 9p`(Monaco d< Œ 9p`(Arial% Line 7 d&&&&7Border 1dd€-'Cþÿ << Gÿÿ ¯Ý ƒ!ÝÑ  ÑÑ#€d#ÑÔ€ÔÔ€%ÔÑ  ÑÒ  ÒÒ H ÒÑ\R AØ'\ÑÑ#€d#ÑÝ  ÝÔ€%ÔÓ  ÓÔ YYY ÔFILEDÔ€%XÔÌÌò òMarchÏ5,Ï1996ÌÌCecilÏCrowson,ÏJr.ÌÔ€%ôÔAppellateÏCourtÏClerkó ó$$$$'ÿÿdxd éÝ ƒ!ÝÑ#€d#ÑÔ€ÔÔ€%ÔÑ  ÑÒ  ÒÒ H ÒÑ\R AØ'\ÑÑ#€d#ÑÝ  ÝÝ ƒ$Ýà àòòÚ  ÚÚ  ÚóóÝ  ÝDisposable€earnings€subject€to€garnishment€are€protected€by€Truth„in„Lending€legislation.€€Generally,€only€25%€of€weekly€earnings€is€garnishable.€€15ÏUSCA€1673.Ì sÝ ƒ!ÝÑ#€d#ÑÔ€ÔÔ€%ÔÑ  ÑÒ  ÒÒ H ÒÑ\R AØ'\ÑÑ#€d#ÑÝ  ÝÝ ƒ$Ýà àòòÚ  ÚÚ  ÚóóÝ  ÝThe€procedure€is€not€questioned€on€appeal.Ì("ÿÿ$££Ò  ÒÒ  ÒPtPtHHÚ(ÿáÿâùFG(üHHÚ(d'@Styl{WP}01•ÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃà Ãà Ãà Ãà Ãà ÃÃÃÃÃÃÃÃÃÃÃÐ ÐÐHHÐÐ  ÐÐ2ÐÐÿÿ¸æ$ÿÐÐHHÐÐÐÐÐÐÐÐ  ÐÐ ÐÐ ÐÑÑÑGenevaÑÑ ÑÑ € ÑÑ<Px–ÈÑÒÒÒ443!#4ÒÒ$ *$ÒÒ$*$ÒÒ ÿKK ÒÒ  Geneva ÒÒ  Geneva ÒÓ.,ÓÓÓÓ6ÓÓ ÓßßßßßßßßßßßßßßßßßßÑMonacoÑÑ ÑÒ  BA: T Monaco ÒÒ  BA: T Monaco Ò€-‚ƒCþÿ<< CÿÿƒLevel 1Level 2Level 3Level 4Level 5($$””ò òÚ  Ú1Ú  Úó ó„„'÷ÿ dxdüÿP PdÝ ƒ!ÝÔ . ÔÔ€ÔÓ&€##X„d&ÓÑ#€##Xd#ÑÔ€%ÔÑ  ÑÒ  ÒÒ H ÒÑ\R AØ'\ÑÑ#€Xd#ÑÑ#€Xd#ÑÝ  ÝÙ€€ÙÓÓßL€()';+'h|` à. `€€Lßà@ àò òIN€THE€COURT€OFÏAPPEALS€OF€TENNESSEEÌà@ àEASTERN€SECTION€ATÏKNOXVILLEÌÌÌÓÓó óECI€BUILDING€COMPONENTS,€INC.,à à)Ìà àà àà àà àà àà à)à àLOUDONÏCHANCERYÌà àPlaintiff/Appellantà àà àà à)Ô% € ÔÌà àà àà àà àà àà à)à àNO.Ï03A01„9509„CH„OO301Ìv.à àà àà àà àà àà à)Ìà àà àà àà àà àà à)ÌCHANL„LOC€DOCKS,€INC.€andà àà à)ÌGENE€SMITH,à àà àà àà à)Ìà àà àà àà àà àà à)Ìà àDefendantsà àà àà àà à)Ìà àà àà àà àà àà à)Ìandà àà àà àà àà àà à)Ìà àà àà àà àà àà à)ÌMARINA€DOCK€&€SUPPLY,€INC.à à)Ìà àà àà àà àà àà à)à àAFFIRMEDÌà àGarnishee/Appelleeà àà à)ÌÌÌÌÌJ.€Myers€Morton,€Knoxville,€Attorney€for€the€Appellant,ÏECI€Building€Components,€Inc.ÌÌC.€Paul€Harrison,€Knoxville,€Attorney€for€the€Appellee,ÏMarine€Dock€&€Supply,€Inc.ÌÌÌÌà@ àò òòòO€P€I€N€I€O€NÌà àÌÌà àà àà àà àà àà àà àó óóóINMAN,€Senior€JudgeÌÌà@ àò òIÌó óÌÌÓÓà àA€judgment€was€entered€against€the€defendants,€jointly,€on€September€2,Ï1992.€€A€garnishment€in€aid€of€a€writ€of€execution€was€issued€by€the€Clerk€onÏJanuary€19,€1993€to€Marina€Dock€and€Supply,€Inc.,€which€answered€by€letter€onÏJanuary€20,€1993€that€it€"was€not€indebted€to€the€defendant€at€the€time€of€the€serviceÏof€the€garnishment."Ìà àOn€May€24,€1993,€the€judgment€creditor€filed€a€motion€for€a€conditionalÏjudgment€against€the€garnishee€for€the€entire€balance€of€the€judgment.€€The€statedÏground€of€this€motion€was€that€Gene€Smith,€one€of€the€judgment€debtors,€was€theÏmanager€of€the€garnishee€who€was€liable€to€Smith€for€wages€accrued€during€theÏmonths€of€February,€March€and€April,€1993,€which€were€unaccounted€for.Ìà àThis€motion€galvanized€the€garnishee€to€file€a€formal€answer€to€theÏgarnishment.€€It€responded€that€during€January,€February,€and€March,€1993€it€paidÏSmith€$2,415.05,€of€which€25%€was€paid€to€the€Clerk,× ƒ+ ××  ×€and€that€Smith€had€noÏregular€salary.€€Simultaneously,€it€filed€a€response€to€the€motion€for€a€conditionalÏjudgment€essentially€reiterating€the€content€of€its€answer€to€the€garnishment.× ƒ, ××  ×ÌÒ ` ÒÒ ½ ÒÓÓà àA€second€garnishment€was€served€on€May€27,€1993.€€The€ÌÌgarnishee€responded€thatÌÌà à"€.€.€.€3.€€Gene€Smith€has€not€taken€a€salary€from€Marina€andÏDock€Supply,€Inc.€since€our€receipt€of€the€above€referencedÏgarnishment.€€Marina€and€Dock€Supply,€Inc.€loaned€Gene€SmithÏ$500.00€on€June€11,€1993,€and€that€is€the€only€drafts€written€toÏGene€Smith€since€our€receiving€the€garnishment€on€May€27,Ï1993.**Ì4.€€Gene€Smith€receives€no€regular€salary€at€this€time.Ì**€Three€Checks€equaling€$389.65€for€expense€reimbursementsÏwere€also€written€.€.€."€€ÌÌÌÒ  ÒÒ 9 ÒÓÓà àThe€matter€thereafter€came€on€for€hearing€before€the€Chancellor€on€the€issueÏof€whether€a€conditional€judgment€should€be€entered€against€the€garnisheeÏpursuant€to€òòTenn.€Code€Ann.€ððóó€26„2„209,€or€whether€execution€should€be€awardedÏagainst€the€garnishee€pursuant€to€òòTenn.€Code€Ann.€ððóó€26„2„206.Ìà àThe€Chancellor€found€that€"the€garnishee€was€not€indebted€to€the€judgmentÏcreditor€and€dismissed€the€motion€for€a€conditional€judgment€or€for€execution.ÌÌà@ àò òIIÌó óÌà àThe€judgment€creditor€appeals,€and€presents€for€review€this€issue,€òòin€haecÏverba:ÌÒ ` ÒÒ ½ ÒÓÓà à"óóDespite€proof€payments€being€made€on€behalf€of€GeneÏSmith,€and€despite€proof€of€willful€and€deliberate€agreement€toÏwork€for€free€to€defeat€the€garnishment,€the€Chancellor€ruled€thatÏgarnishee€had€no€property,€debt,€effects€in€its€hands€or€under€itsÏcontrol,€nor€liable€for€the€defendant,€Smith's€debt."ÌÌÌÒ S ÒÒ Ï ÒÓÓà àThe€testimony€of€Madeline€Werhoven€Haynes,€bookkeeper€for€Marina€andÏDock€Supply,€is€revealing:ÌòòÌÒ ` ÒÒ  ÒÓÓBY€MR.€MORTON:óóÌà àQ.à àAnd€you're€Madeline€Werhoven?Ìà àA.à àI'm€Madeline€Haynes,€I€got€married.Ìà àQ.€€You're€Madeline€Haynes,€I'm€sorry€Mrs.€Haynes.€€AndÏyou're€the€bookkeeper€for€Marina€and€Dock€Supply;€correct?Ìà àA.à àCorrect€.€.€.Ìà àQ.à àOkay,€and€I'll€try€to€be€brief.€€It's€true€back€at€the€timeÏof€January€of€1993,€that€when€„€„€Gene€Smith,€he€worked€forÏMarina€Dock€and€Supply;€correct?Ìà àA.à àRight.Ìà àQ.à àAnd€there€was€a€time€where€he€borrowed€moneyÏfrom€Marina€Dock€and€Supply;€correct?Ìà àA.€€Yes.Ìà àQ.à àIn€January€of€1993€and€February€of€1993,€and€priorÏto€that€he€„€„€he'd€come€to€you€and€say,€"I€need€money";€correct?Ìà àA.à àCorrect.Ìà àQ.à àAnd€you€would€give€him€money€if€Marina€Dock€andÏSupply's€bank€account€had€money;€correct?Ìà àA.à àCorrect.Ìà àQ.à àAnd€you€worked€out€a€deal€with€Mr.€Smith€that€theÏamount€of€money€you€gave€him€corresponded€to€the€amount€of€hisÏsalary,€the€same€amount€of€his€salary;€correct?Ìà àA.à àThe€same€amount€that€he€cleared.Ìà àQ.à àOkay,€so€if€he€was€making€„€„€he€was€making€$805.02Ïevery€two€weeks,€that's€what€his€salary€was€up€until€January€orÏFebruary€of€1993?Ìà àA.à àThat€was€his€net€salary.Ìà àQ.€€à àHis€net€salary,€okay.€€So,€if€he€had€a€loan€„€„€if€heÏcame€and€got€a€loan€from€you,€you€loaned€him€either€402.51,Ïwhich€is€a€weekly€amount,€or€805.02;€correct?Ìà àA.à àCorrect.Ìà àQ.à àAnd€up€until€February€of€1993,€when€he€neededÏmoney€and€you€had€it,€you€paid€it€to€him;€correct?Ìà àA:€€à àYes.Ìà àQ:à àAnd€at€some€point€Carlie,€he€was€the€owner€ofÏMarina€Dock€and€Supply;€right?Ìà àA.à àCorrect.Ìà àQ.à àAt€some€point€after€you€received€the€garnishment€ofÏGene€Smith's€wages,€Carlie€Smith€told€you,€"Do€not€pay€GeneÏanything€else";€correct?Ìà àA.à àThat's€correct.Ìà àQ.à àMake€no€more€loans€to€him?Ìà àA.à àRight.Ìà àQ.à àAnd€it€was€after€the€garnishment€was€received;Ïcorrect?Ìà àA.à àYes,€I€„€„€yeah.Ìà àQ.€à àGene€Smith's€last€payroll€check€was€March€5th,Ï1993,€is€that€right?Ìà àA:à àYes€.€.€.Ìà àQ.à àIf€the€Court€please,€one€of€those€employees€is€GeneÏSmith,€he€still€works€for€Marina€Dock€and€Supply;€right?Ìà àA.à àHe€does€not€collect€salary.Ìà àQ.à àBut€he's€the€boss€there;€is€that€right?Ìà àA.à àYes.Ìà àQ.à àHe€also€signs€the€checks?Ìà àA.à àCorrect.Ìà àQ.à àAs€far€as€you€know,€he€doesn't€pay€any€rent€orÏMarina€Dock€and€Supply€any€rent?Ìà àA.à àNo,€he€does€not.Ìà àTHE€COURT:€€How€does€he€eat;€where€does€he€get€hisÏfood;€how€does€he€buy€gas?Ìà àTHE€WITNESS:€€His€wife,€as€I€see€it.ÌÌÌÒ S ÒÒ Ï ÒÓÓà àòòTenn.€Code€Ann.€ððóó€26„2„202€provides€that:ÌÒ « ÒÒ  ÒÓÓAll€property,€debts€and€effects€of€the€defendant€in€the€possessionÏof€the€garnishee,€or€under€his€control,€shall€be€liable€to€satisfy€theÏplaintiff's€judgment€from€the€service€of€the€notice,€or€from€the€timeÏthey€came€to€his€hands,€if€acquired€subsequent€to€the€service€ofÏthe€notice,€and€before€judgment.ÌÌÌÒ S ÒÒ Ï ÒÓ  ÓÓÓò òIIIó óÌÓ  ÓÌà àThe€issue€before€us€is€not€whether€a€conditional€judgment€should€haveÏbeen€entered€against€the€garnishee,€because€such€relief€is€available€only€when€aÏgarnishee€fails€to€appear€or€answer.€€See€òòTenn.€Code€Ann.€ððóó€26„2„209.€€TheÏgarnishee€appeared€and€answered,€and€its€officers€were€examined€upon€theÏissue€of€whether€it€held€any€property,€debts€or€effects€of€the€debtor.€€The€issueÍproperly€was€whether€the€garnishee€held€or€had€control€of€any€property,€money,Ïor€effects€of€the€debtor.€€òòTenn.€Code€Ann.€ððóó€26„2„206.€€The€Chancellor€found€thatÏthe€garnishee€held€no€assets€or€the€debtor,€and€we€review,€òòde€novoóó€the€record€toÏdetermine€if€the€preponderance€of€the€evidence€is€otherwise.€€òòTenn.€R.€App.€P.,ÏRule€13óó(d).Ìà àThere€is€reason€to€believe€that€the€garnishee€and€debtor€deliberately€setÏupon€a€course€to€defeat€the€garnishment,€as€revealed€by€the€testimony€of€theÏbookkeeper,€but€the€matter€appears€to€have€been€throughly€considered€by€theÏChancellor.Ìà àÌà àIn€summary,€the€debtor€is€the€manager€of€the€garnishee,€a€corporationÏwhose€shares€are€wholly€owned€by€the€debtor's€brother.€€At€all€times€material€heÏwas€a€full„time€employee€of€the€garnishee;€he€"was€the€boss";€he€signed€theÏchecks,€and€lives€on€the€premises€in€a€trailer€furnished€by€the€garnishee€for€whichÏhe€pays€no€rent.€€He€"collects€no€salary",€and€before€the€second€garnishment€wasÏserved€he€simply€"borrowed"€from€his€employer€an€amount€equivalent€to€hisÏsalary.€€Later,€the€borrowing€ceased,€as€we€deduce,€on€the€advice€of€counsel.Ìà àWhile€this€arrangement€is€suspect,€we€cannot€disagree€with€the€conclusionÏof€the€Chancellor€that€the€parties€are€free€to€make€whatever€contract€they€choose.€ÏIf€the€debtor€agreed€to€work€gratis,€and€"live€off€his€wife,"€as€they€testified,€weÏknow€of€no€reason€in€law€why€he€may€not€do€so.€€We€are€not€at€liberty€to€assumeÏdeliberate€and€willful€perjury,€especially€when€the€Chancellor€sat€in€judgment€onÏthe€credibility€of€the€witnesses.€€While€the€issue€is€a€close€one,€we€are€unable€toÍfind€that€the€evidence€preponderates€against€the€judgment,€which€is€affirmed€atÏthe€costs€of€the€appellant.ÌÌÓÓà àà àà àà àà àà à_________________________________Ìà àà àà àà àà àà àWilliam€H.€Inman,€Senior€JudgeÌÌCONCUR:ÌÌÌÌ______________________________ÌHerschel€P.€Franks,€JudgeÌÌÌÌ______________________________ÌCharles€D.€Susano,€Jr.,€JudgeÌà àÌÌÔ% € ÔÌÌÒ  ÒÒ jÿ ÒÓ K Óà àÌà àÌà àÌÌÌÌÌÌÌò òÔ% € Ôà@ àIN€THE€COURT€OF€APPEALS€OF€TENNESSEEÌÌà@ àEASTERN€SECTION€AT€KNOXVILLEÌÌÌÌÌó óÌÌÌò òÌó óECI€BUILDING€COMPONENTS,€INC.,à à)Ìà àà àà àà àà àà à)à àLOUDON€CHANCERYÌà àPlaintiff/Appellantà àà àà à)Ìà àà àà àà àà àà à)à àNO.€03A01„9509„CH„OO301Ìv.à àà àà àà àà àà à)Ìà àà àà àà àà àà à)ÌCHANL„LOC€DOCKS,€INC.€andà àà à)ÌGENE€SMITH,à àà àà àà à)Ìà àà àà àà àà àà à)Ìà àDefendantsà àà àà àà à)Ìà àà àà àà àà àà à)Ìandà àà àà àà àà àà à)Ìà àà àà àà àà àà à)ÌMARINA€DOCK€&€SUPPLY,€INC.à à)Ìà àà àà àà àà àà à)à àAFFIRMEDÌà àGarnishee/Appelleeà àà à)ÌÌÌÌÌÌà@ àò òòòJ€U€D€G€M€E€N€TÌÌà àó óóóThis€appeal€came€on€to€be€heard€upon€the€record€from€the€Chancery€CourtÌÌof€Loudon€County€and€briefs€filed€on€behalf€of€the€respective€parties.€€Upon€ÌÌÓÓconsideration€thereof,€this€court€is€of€the€opinion€that€there€is€no€reversible€error€in€the€trialÏcourt's€judgment.Ìà àIt€is€therefore,€ORDERED€and€ADJUDGED€by€this€Court€that€the€judgment€of€the€trialÏcourt€is€affirmed.€€Costs€are€assessed€to€the€appellant€and€its€surety.€€The€case€is€remanded€toÏthe€Chancery€Court€of€Loudon€County€for€collection€of€costs€pursuant€to€applicable€law.ÌÌÓ  Óà àà àà àà àPER€CURIAM