Rule 3.102. Garnishment Before Judgment

(A) Availability of Prejudgment Garnishment.

(1) After commencing an action on a contract, the plaintiff may obtain a prejudgment

writ of garnishment under the circumstances and by the procedures provided in this

rule.

(2) Except as provided in subrule (A)(3), a prejudgment garnishment may not be used

(a) unless the defendant is subject to the jurisdiction of the court under chapter 7 of

the Revised Judicature Act, MCL 600.701 et seq.;

(b) to garnish a defendant's earnings; or

(c) to garnish property held or an obligation owed by the state or a governmental

unit of the state.

(3) This rule also applies to a prejudgment garnishment in an action brought to enforce

a foreign judgment. However, the following provisions apply:

(a) The defendant need not be subject to the court's jurisdiction;

(b) The request for garnishment must show that

(i)

the defendant is indebted to the plaintiff on a foreign judgment in a stated

amount in excess of all setoffs;

(ii) the defendant is not subject to the jurisdiction of the state, or that after

diligent effort the plaintiff cannot serve the defendant with process; and

(iii) the person making the request knows or has good reason to believe that a

named person

(A) has control of property belonging to the defendant, or

(B) is indebted to the defendant.

(c) Subrule (H) does not apply.

(B) Request for Garnishment. After commencing an action, the plaintiff may seek a writ of

garnishment by filing an ex parte motion supported by a verified statement setting forth

specific facts showing that:

(1) the defendant is indebted to the plaintiff on a contract in a stated amount in excess of

all setoffs;

(2) the defendant is subject to the jurisdiction of the state;

(3) after diligent effort the plaintiff cannot serve the defendant with process; and

(4) the person signing the statement knows or has good reason to believe that a named

person

(a) has control of property belonging to the defendant, or

defendant is indebted to the plaintiff on a contract in a stated amount in excess of

all setoffs;

(2) the defendant is subject to the jurisdiction of the state;

(3) after diligent effort the plaintiff cannot serve the defendant with process; and

(4) the person signing the statement knows or has good reason to believe that a named

person

(a) has control of property belonging to the defendant, or

(b) is indebted to the defendant.

On a finding that the writ is available under this rule and that the verified statement

states a sufficient basis for issuance of the writ, the judge to whom the action is

assigned may issue the writ.

(C) Writ of Garnishment. The writ of garnishment must have attached or include a copy of

the verified statement, and must:

(1) direct the garnishee to:

(a) file with the court clerk within 14 days after the service of the writ on him or

her a verified disclosure indicating his or her liability (as specified in subrule

[E]) to the defendant;

(b) deliver no tangible or intangible property to the defendant, unless allowed by

statute or court rule;

(c) pay no obligation to the defendant, unless allowed by statute or court rule; and

(d) promptly provide the defendant with a copy of the writ and verified statement

by personal delivery or by first class mail directed to the defendant's last known

address;

(2) direct the defendant to refrain from disposing of any negotiable instrument

representing a debt of the garnishee or of any negotiable instrument of title

representing property in which he or she claims an interest held in the possession or

control of the garnishee;

(3) inform the defendant that unless the defendant files objections within 14 days after

service of the writ on the defendant, or appears and submits to the jurisdiction of the

court, an order may enter requiring the garnishee to deliver the garnished property or

pay the obligation to be applied to the satisfaction of the plaintiff's claim; and

ld in the possession or

control of the garnishee;

(3) inform the defendant that unless the defendant files objections within 14 days after

service of the writ on the defendant, or appears and submits to the jurisdiction of the

court, an order may enter requiring the garnishee to deliver the garnished property or

pay the obligation to be applied to the satisfaction of the plaintiff's claim; and

(4) command the process server to serve the writ and to file a proof of service.

(D) Service of Writ. MCR 3.101(F) applies to prejudgment garnishment.

(E) Liability of Garnishee. MCR 3.101(G) applies to prejudgment garnishment except that

the earnings of the defendant may not be garnished before judgment.

(F) Disclosure. The garnishee shall file and serve a disclosure as provided in MCR 3.101(H).

(G) Payment or Deposit Into Court. MCR 3.101(I) and (J) apply to prejudgment

garnishment, except that payment may not be made to the plaintiff until after entry of

judgment, as provided in subrule (I).

(H) Objection; Dissolution of Prejudgment Garnishment. Objections to and dissolution of a

prejudgment garnishment are governed by MCR 3.101(K) and MCR 3.103(H).

(I)

Proceedings After Judgment.

(1) If the garnishment remains in effect until entry of judgment in favor of the plaintiff

against the defendant, the garnished property or obligation may be applied to the

satisfaction of the judgment in the manner provided in MCR 3.101(I), (J), (M), and

(O).

(2) MCR 3.101(P) and (Q) and MCR 3.103(I)(2) apply to prejudgment garnishment.

(J) Costs and Fees; Default; Contempt; Judicial Discretion. MCR 3.101(R), (S), and (T)

apply to prejudgment garnishment.