GARNISHMENT - FULL FAITH AND CREDIT - NATURE OF PRINCIPAL JUDGMENT

Abstract

Plaintiff, appellee, sued an Illinois insurance company for legal services, and on the same day sued out a writ of garnishment against a Michigan debtor of the insurance company. Two days later the insurance company was dissolved in Illinois under the provisions of the Illinois Insurance Code, and an Illinois liquidator was vested with title to all of the insurance company\u27s property, wherever located. The liquidator intervened in this case, claiming prior title to the garnishment debt, by virtue of the Illinois statute and judicial proceedings. Held, the commencement of the garnishment suit gave plaintiff a lien on the garnishment debt, which was not divested by the liquidation proceedings in Illinois, and being prior in time, is superior to the liquidator\u27s statutory title to the debt as an asset of the dissolved company. Smith v. Builders & Manufacturers Casualty Co., 288 Mich. 146,284 N. W. 678 (1939)