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Zeecon Wireless Internet, LLC v. American Bank of Texas, N.A.

Due to appellee's failure to serve appellant with a copy of the writ of garnishment, the application for the writ of garnishment, accompanying affidavits and orders of the court as required by Texas Rule of Civil Procedure 663(a), the portion of the court's judgment purporting to disburse some of appellant's funds to third parties is void. Austin Court of Appeals, No. 03-06-00395-CV, 01-20-2010

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OPINION

This appeal arises from a garnishment proceeding. Joanna McEwen (the judgment creditor and garnishor) sought to satisfy, by writ of garnishment, a judgment she had obtained against Zeecon Wireless Internet, LLC in a suit for breach of contract. McEwen initiated a proceeding to garnish funds belonging to Zeecon on deposit at American Bank of Texas, N.A. (the garnishee). The garnishment writ was issued and served on American Bank, but garnishment documents were never served on Zeecon. The district court dissolved the writ but ordered a portion of Zeecon’s funds disbursed to American Bank and McEwen to compensate them for their attorney’s fees and costs incurred in connection with the garnishment proceeding. By one issue, Zeecon contends that the garnishment order was invalid to the extent it disbursed funds because McEwen failed to serve Zeecon with the garnishment documents as required by Texas Rule of Civil Procedure 663a and because the affidavit supporting the writ was insufficient. We conclude that, because McEwen failed to strictly comply with the statute and rules requiring service on the debtor in a garnishment proceeding, the portion of the district court’s order purporting to distribute some of Zeecon’s funds is void. Accordingly, we vacate that portion of the judgment.

FACTUAL AND PROCEDURAL BACKGROUND

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