FSM SUPREME COURT TRIAL DIVISION

Cite as FSM Social Sec. Admin. v. Yamada, 18 FSM Intrm. 88 (Pon. 2011)

[18 FSM R. 88]

FSM SOCIAL SECURITY ADMINISTRATION,

Plaintiff,

vs.

ELEHNA YAMADA d/b/a E&6 STORE and

d/b/a AYS ENTERPRISES,

Defendant.

CIVIL ACTION NO. 2008-024

ORDER

Dennis K. Yamase
Associate Justice

Decided: December 6, 2011

APPEARANCES:

        For the Plaintiff:                              Michael J. Sipos, Esq.
                                                               P.O. Box 2069
                                                               Kolonia, Pohnpei FM 96941

        For the Defendant:                         Salomon M. Saimon, Esq.
                                                               Micronesian Legal Services Corporation
                                                               P.O. Box 129
                                                               Kolonia, Pohnpei FM 96941

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HEADNOTES

Attachment and Execution – Garnishment

The FSM Supreme Court's power to issue writs of garnishments is based in 6 F.S.M.C. 1404 and supported by case authority. FSM Social Sec. Admin. v. Yamada, 18 FSM Intrm. 88, 89 (Pon. 2011).

Attachment and Execution – Garnishment

A garnishment order directs the garnishee, which is the person or entity holding money for the judgment debtor's benefit, to pay sufficient money to the judgment creditor to discharge the judgment. The garnishee must determine if and how much money it holds for the judgment debtor and then pay the judgment amount. FSM Social Sec. Admin. v. Yamada, 18 FSM Intrm. 88, 89 (Pon. 2011).

Attachment and Execution – Garnishment

The writ of garnishment is to be used completely at the court's discretion and should only garnish funds beyond what the defendant reasonably needs to support herself. Although it is in the best interest of all parties to have the judgment paid as soon as possible, the court must be cautious

[18 FSM R. 89]

in issuing writs of garnishment, and it must be precise in directing the garnishee and mindful of how the garnishment will affect the defendant. FSM Social Sec. Admin. v. Yamada, 18 FSM Intrm. 88, 89 (Pon. 2011).

Debtors' and Creditors' Rights – Tax Liens; Social Security

Social Security taxes do have a priority over all other claims and liens. FSM Social Sec. Admin. v. Yamada, 18 FSM Intrm. 88, 89 (Pon. 2011).

Attachment and Execution – Garnishment; Debtors' and Creditors' Rights – Tax Liens

Before garnishing tenants' rental payments to pay the lessor's tax liens, the court should be provided with information concerning the building, including current interests in the building, current leases, and any other facts that the court might require to rule on the garnishment request and any information on the defendant's dependence on the monthly rental income and other income at her disposal so that the court may order with particularity a writ of garnishment. FSM Social Sec. Admin. v. Yamada, 18 FSM Intrm. 88, 89-90 (Pon. 2011).

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COURT'S OPINION

DENNIS K. YAMASE, Associate Justice:

On November 20, 2009, the Plaintiff FSM Social Security Administration (FSMSSA) submitted a Motion for an Order Garnishing Rent Proceeds Generated by Lien Affected Property, specifically dealing with the AYS Building. A copy of the motion was properly served on Salomon Saimon, Esq. of the Micronesian Legal Services Corporation counsel for the Defendant Elehna Yamada et al. (Yamada) on November 20, 2009. The motion is unopposed.

The motion was presented in lieu of the pending FSMSSA's motion for an Order in Aid of Judgment. The FSMSSA requests that the Court garnish the rent proceeds from tenants occupying the AYS Building, a building allegedly owned by the Defendant Yamada. The garnishment would be an alternate means of satisfying the judgment entered against the Defendant.

The power of this Court to issue writs of garnishments is based in 6 F.S.M.C. 1404 and supported by case authority. FSM Social Sec. Admin. v. Lelu Town, 13 FSM Intrm. 60 (Kos. 2004); Bank of Guam v. Elwise, 4 FSM Intrm. 150 (Pon. 1989). The garnishment process is explained in Estate of Mori v. Chuuk, 12 FSM Intrm. 3 (Chk. 2003). "A garnishment order directs the garnishee, which is the person or entity holding money for the benefit of the judgment creditor [sic], to pay sufficient money to the judgment creditor to discharge the judgment." Estate of Mori, 12 FSM at 10. The case further explains that "the garnishee must determine if and how much money it holds for the judgment debtor and then pay the judgment amount." Id.

The use of a writ of garnishment is to be used completely at the court's discretion and should only garnish funds beyond what the defendant reasonably needs to support herself. Elwise, 4 FSM at 152, 153. It is in the best interest of all parties to have the judgment paid as soon as possible, however the Court must be cautious in issuing writs of garnishment. It must be precise in directing the garnishee and mindful of how the garnishment will affect the defendant.

Social Security taxes do have a priority over all other claims and liens as explained in 53 F.S.M.C. 607. Before the FSMSSA's motion can be fully considered, however, the Court must know the tenants of the AYS Building who may act as garnishees and know the financial situation of the

[18 FSM R. 90]

Defendant and what her dependence is on the monthly rent money.

Although the FSMSSA's motion is unopposed, it does not give the Court enough pertinent facts concerning the AYS Building and its tenants to properly issue a writ of garnishment.

The Court HEREBY ORDERS that within 50 days of service of this order, the FSMSSA will provide the Court with more information concerning the AYS Building, including current interests in the building, current leases, and any other facts that the Court might require to rule on the garnishment request. Further, information on any dependence the Defendant has on the monthly rent money and other information on the income at her disposal should be provided so that the Court may order with particularity a writ of garnishment. A further hearing in this matter may still be required after the information is received.

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