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Committee advances bill to close garnishment 'shotgun' loophole and provide remedy for garnishees
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Summary
A bill to tighten timelines for garnishee interrogatory responses and allow a limited remedy when a garnishee proves it never had property or indebtedness of the judgment debtor was reported favorably after sponsors said an October 2025 Supreme Court ruling highlighted the problem.
A sponsor explained a bill (referred to in committee as "76"/SB476) intended to address a post‑October 2025 court decision that allowed creditors to obtain judgments against garnishees who failed to timely answer interrogatories. The bill would (1) warn garnishees of the time required to respond to interrogatories and (2) provide a limited procedural mechanism for a new trial where a garnishee can prove they never possessed property or indebtedness of the judgment debtor during garnishment proceedings.
Committee members discussed how a "shotgun" approach—sending interrogatories broadly to many entities—can trap businesses that lack knowledge of the targeted debtor, and noted sanctions are available in some cases. The sponsor said the bill seeks to close that loophole and reduce the need for lengthy appeals to the state Supreme Court. The committee reported the bill favorably by voice vote.
