Reeves v. Crownshield

New York Court of Appeals · 1937 · Civil Procedure
8 N.E.2d 283 (1937)
Updated
Civil ProcedureSupplementary proceedingsJudgment enforcementContemptConstitutional lawsection 793section 801Civil Practice Act

Facts

A creditor sought to collect an approximately $400 judgment by using the 1935 statutory procedure allowing installment payments from a debtor's income. The debtor was employed by the Federal government as a steamship inspector earning $230 per month, less a small pension deduction; he had no children, his wife's whereabouts were unknown, and his only identified obligations were $48 monthly rent and living expenses. The court ordered him to pay $20 per month until the judgment was satisfied. When he failed to pay, he was held in contempt, fined $20, and made subject to commitment if he did not pay the fine.

Issue

Do sections 793 and 801 of the Civil Practice Act, which authorize installment payment orders from a judgment debtor's income and contempt sanctions for nonpayment, violate due process by effectively imposing imprisonment for debt? Does applying that procedure to a Federal employee unconstitutionally interfere with a Federal instrumentality?

Rule

Imprisonment for failure to obey a court order directing payment from income is not unconstitutional imprisonment for debt when the order is made with due regard to the reasonable needs of the debtor and his family and rests on the debtor's ability to comply. A State may require a Federal employee, after salary has been paid to him, to apply part of that income to satisfy a judgment, and contempt sanctions for disobeying such an order do not unlawfully interfere with a Federal instrumentality.

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One of 10 multiple-choice questions for this case. Pick an answer to see why.
In Albany, Nora Ellison obtained a money judgment against Devin Cole. After notice and a hearing, the court found Devin earned $4,800 per month, had ordinary living expenses, and could pay $250 monthly without impairing his reasonable needs, so it entered an installment order. Devin admitted he could pay but announced he would not pay because 'nobody can jail me over a private debt.'

If Devin is later cited for contempt for failing to make the ordered payments, what is the strongest argument for upholding the contempt sanction?

Explanation. The majority upheld contempt where the court, after notice and opportunity to show inability, entered an installment order with due regard to reasonable needs and the debtor then willfully refused to comply despite ability to pay. In that situation, imprisonment is for disobedience of a lawful order, not unconstitutional imprisonment for debt.