In re:

(1) Repeal of subdivision 76.075, entitled "Exemptions," of Rule 76, entitled "Executions," and in lieu thereof adoption of a new subdivision 76.075, entitled "Exemptions."

(2) Repeal of subdivision 90.01, entitled "Definitions;" subdivision 90.02, entitled "Request for Issuance of Writ of Garnishment;" subdivision 90.03, entitled "Service on Garnishee - Return of Service - Return Date - Service of Subsequent Pleadings and Papers;" subdivision 90.07, entitled "Interrogatories to Garnishee - Answers to Interrogatories - Exceptions - Response;" subdivision 90.10, entitled "Discharge of Garnishee - Judgment in Garnishment;" subdivision 90.11, entitled "Disbursement;" subdivision 90.12(a), entitled "Allowance to Garnishee if Interrogatory Answers are Not Excepted to or Denied;" subdivision 90.12(b), entitled "Allowance to Garnishee if Garnishor Does Not Recover Judgment Against Garnishee;" subdivision 90.15, entitled "Garnishment of Wages - Notice of Wage Exemption Statute Required;" and subdivision 90.19, entitled "Reporting Judgment Balance - Payment on the Record," of Rule 90, entitled "Garnishments and Sequestration," and in lieu thereof adoption of a new subdivision 90.01, entitled "Definitions;" a new subdivision 90.02, entitled "Request for Issuance of Writ of Garnishment;" a new subdivision 90.03, entitled "Service on Garnishee - Return of Service - Return Date - Service of Subsequent Pleadings and Papers;" a new subdivision 90.035, entitled "Exemptions;" a new subdivision 90.07, entitled "Interrogatories to Garnishee - Answers to Interrogatories - Exceptions - Response;" a new subdivision 90.10, entitled "Discharge of Garnishee - Judgment in Garnishment;" a new subdivision 90.11, entitled "Disbursement;" a new subdivision 90.12(a), entitled "Allowance to Garnishee if Interrogatory Answers are Not Excepted to or Denied;" a new subdivision 90.12(b), entitled "Allowance to Garnishee if Garnishor Does Not Recover Judgment Against Garnishee;" a new subdivision 90.15, entitled "Garnishment of Wages - Notice of Wage Exemption Statute Required;" a new subdivision 90.18, entitled "Staying, Quashing, or Vacating Writ;" and a new subdivision 90.19, entitled "Reporting Judgment Balance - Remaining Due - Payment on the Record."

ORDER

1.  It is ordered that effective July 1, 2016, subdivision 76.075 be and the same is hereby repealed and a new subdivision 76.075 adopted in lieu thereof to read as follows:

76.075      EXEMPTIONS

(a) The requirements contained within this Rule 76.075 are applicable exclusively to writs of execution.  Within five days after an officer has levied an execution, the officer shall notify the person against whom the execution has issued that an execution has been levied, that certain property, if any, is exempt under sections 513.430 and 513.440, RSMo, and that the person has the right to hold the property as exempt from attachment and execution.  The officer also shall generally state that there are certain exemptions under state and federal law that the judgment debtor may be able to claim with respect to the property levied upon and describe the procedure for claiming the property as exempt.  The notice also shall inform the person against whom the execution issues of the manner in which the person may obtain a specific description of the property upon which the levy was made.  The notice may be served in the same manner as a summons or by mailing the notice to the judgment debtor at the debtor's last known address by regular mail.  Service by mail shall be complete upon mailing.

(b) The judgment debtor may claim any exemption by filing a verified request with the levying officer within 20 days after notice of the levy.  Any exemption allowed by federal law may be claimed at any time prior to the sale of property or disbursement of funds.  Upon receipt of a verified request, the levying officer shall notify the party requesting the execution forthwith that a claim of exemption has been filed.  The party requesting the execution may object to any claim for exemption within ten days of the filing of the verified request by filing a request for court review.

2.  It is ordered that effective July 1, 2016, subdivision 90.01, subdivision 90.02, subdivision 90.03, subdivision 90.07, subdivision 90.10, subdivision 90.11, subdivisions 90.12(a) and (b), subdivision 90.15, and subdivision 90.19 be and the same are hereby repealed and a new subdivision 90.01, a new subdivision 90.02, a new subdivision 90.03, a new subdivision 90.035, a new subdivision 90.07, a new subdivision 90.10, a new subdivision 90.11, new subdivisions 90.12(a) and 90.12(b), a new subdivision 90.15, a new subdivision 90.16, a new subdivision 90.18, and a new subdivision 90.19 adopted in lieu thereof to read as follows:

90.01  DEFINITIONS

In this Rule 90:

(a) A "garnishor" is a judgment creditor;

(b) A "debtor" is a judgment debtor;

(c) A "garnishee" is the person summoned as garnishee in the writ of garnishment or levy;

(d) "Property subject to garnishment" is all goods, personal property, money, credits, bonds, bills, notes, checks, choses in action, or other effects of debtor and all debts owed to debtor.  "Property subject to garnishment" does not include funds of the debtor on deposit with a bank or other financial institution in an account in which all funds are:

(1) Deposited electronically on a recurring basis, and

(2) Reasonably identified as funds exempt from garnishment pursuant to section 513.430.1(10)(a), (b), or (c), RSMo, or subject to the exemptions under Title 31 C.F.R. Part 212;

(e) "Continuous wage garnishment" is the garnishment of earnings, as defined in section 525.030, RSMo, that does not have a return date and instead remains in effect until the judgment is paid in full or until the employment relationship is terminated, whichever occurs first.

90.02  REQUEST FOR ISSUANCE OF WRIT OF GARNISHMENT

The clerk of the court that entered the judgment shall issue a writ of garnishment if the garnishor files a written request stating:

(a) That a judgment has been entered against the debtor and remains unsatisfied;

(b) The judgment balance, as defined in section 408.040, RSMo, and the amount remaining unpaid;

(c) That the garnishor knows or has good reason to believe that the garnishee is indebted to debtor, that the garnishee is obligated to make periodic payments to debtor, or that the garnishee has control or custody of property belonging to debtor;

(d) The requested return date of the writ, which shall be either 30, 60, 90, 120, 150, or 180 days after the filing of the request for the writ or, alternatively, that a continuous wage garnishment is requested; and

(e) Whether payments made by the garnishee shall be made to the court or to the attorney for the garnishor.

Upon receipt of the garnishment application, the clerk shall process the application, issue the writ, and return the garnishment to the requesting party, who shall serve the garnishment on the garnishee as provided by Rule 90.03.

90.03     SERVICE ON GARNISHEE - RETURN OF SERVICE - RETURN DATE - NOTICE TO JUDGMENT DEBTOR - SERVICE OF  SUBSEQUENT PLEADINGS AND PAPERS

(a) The garnishee shall be served with summons and the writ of garnishment by the sheriff.  If the sheriff fails to obtain service upon a request to do so, the garnishor may request the court to appoint a special process server.  The special process server shall have the same duties as the sheriff with respect to service of garnishments.  In addition, service may be made upon an employee of the garnishee designated to receive service or upon the paying, disbursing, or auditing officer of the garnishee.  Return of service shall be made as provided in Rule 54.20.  The return date of the writ of garnishment, if applicable, shall be set forth in the summons.

(b) Within five days of notice of service upon the garnishee, the garnishor shall serve a copy of the summons and writ on the judgment debtor by delivering it to the judgment debtor as provided in Rule 43.01(c) or by mailing the documents to the debtor’s last known address.  Service by mail shall be complete upon mailing.  At the time of mailing, a certificate of service shall be filed with the court.  The certificate shall show the caption of the case, the name of the party served, the date and manner of service, the designation of the documents, and the signature of the serving party or attorney.

(c) Within five days of service of the summons and writ upon the garnishee, the garnishee shall hand deliver or mail a copy of the summons and writ on the judgment debtor at debtor’s last known address according to the garnishee’s records.

(d) All pleadings and papers subsequent to service of the summons and writ of garnishment shall be served as provided in Rule 43.01.

90.035  EXEMPTIONS

(a) Every writ of garnishment shall have clearly and legibly printed thereon a notice to the person against whom the garnishment has issued that:

(1) A garnishment has been levied;

(2) Certain funds may be exempt under sections 513.430 and 513.440, RSMo, or under Title 31 C.F.R. Part 212; and

(3)The person has the right to hold the funds as exempt from garnishment.

The notice shall also generally state that there are certain exemptions under state and federal law that the judgment debtor may be able to claim with respect to the funds levied upon and describe the procedure for claiming the funds as exempt.

(b) The judgment debtor may claim any exemption by filing a verified claim of exemption with the court and serving a copy of it on the garnishor within 20 days after being served with the notice of garnishment.  The party requesting the garnishment may object to any claim for exemption within 20 days of the filing of the verified request by filing a request for court review.  If a request for court review is not timely filed, the garnishee shall release from garnishment the funds claimed as exempt by the judgment debtor or, if any such exempt funds shall have been previously paid to the court or the garnishor, such exempt funds shall be returned to the judgment debtor not later than ten days after the last day on which the garnishor could have timely filed a request for court review.

(c) Upon filing of an objection to a claim of exemption, the clerk shall promptly present said objection before the court in chambers.  The court may rule upon the objection to claim of exemption upon the pleadings or may order a hearing.  Any hearing required by the court shall be expedited, shall be held not later than 30 days after the filing of the request for court review, and shall be held upon not less than five days notice of the hearing to all parties in interest.

90.07  INTERROGATORIES TO GARNISHEE - ANSWERS TO INTERROGATORIES - EXCEPTIONS - RESPONSE

(a) Interrogatories - Time for Service.  The garnishor shall serve written interrogatories simultaneously with the garnishment asking the garnishee to:

(1) List and describe the property subject to garnishment in the possession, charge, or control of the garnishee and, in the case of a wage garnishment, state the gross amount of earnings, as defined in section 525.030, RSMo, due to the debtor and the nonexempt portion of such earnings subject to garnishment;

(2) State the last known address of the debtor and the name and last known address of any person, other than debtor, whom the garnishee knows claims or may claim an interest in or to the property subject to garnishment;

(3) If the garnishee is a bank or other financial institution, state whether at the time the writ of garnishment was served or at any subsequent time did the debtor have funds on deposit in an account in which all funds are:

(A) Deposited electronically on a recurring basis, and

(B) Reasonably identified as being funds on deposit that are exempt from garnishment pursuant to section 513.430.1(10)(a), (b), or (c), RSMo, or subject to the exemptions under Title 31 C.F.R. Part 212.  If such funds are on deposit, the garnishee shall identify each account, state the reason for the believed exemption, and identify the entity electronically depositing those funds;

(4) Identify the existence and case number of all senior garnishments and inform the garnishor upon the release, satisfaction, or termination of a senior garnishment; and

(5) Notify the garnishor upon termination of the judgment debtor’s employment.

Supplementation of interrogatory responses shall be a continuing duty of the garnishee so long as the garnishment remains in effect.

The interrogatories shall be served simultaneously with the summons and writ of garnishment.  The garnishor shall provide the interrogatories to the serving officer after the issued summons and writ have been returned to the garnishor by the court.

(b) Answer to Interrogatories - Time for Filing.  The garnishee shall file and serve verified answers to the interrogatories on the garnishor during the ten days immediately after the return date of the writ or, in the case of a continuous wage garnishment, within 20 days from the date on which the garnishee is served with the writ.

(c) Exceptions to Answers to Interrogatories - Time for Filing.  The garnishor shall file and serve on the garnishee any exceptions to the interrogatory answers, asserting any objections to the answers and asserting all grounds upon which recovery is sought against the garnishee.

The exceptions shall be filed within the later of:

            (1) 20 days after service of the answers, or        

            (2) 20 days after the return date of the writ.

The garnishee's answers to interrogatories are conclusively binding against the garnishor if the garnishor does not timely file exceptions to the interrogatory answers.

(d) Response to Exceptions - Time for Filing.  Within 20 days after service of the exceptions, the garnishee may file a response thereto.

(e) Filing.  Interrogatories under this Rule 90.07 shall not be filed with the court except upon court order or contemporaneously with exceptions placing the interrogatory answers in issue.  However, both when the interrogatories and answers are served, the party serving them shall file with the court a certificate of service.  The certificate shall show the caption of the case, the name of the party served, the date and manner of service, the designation of the document, e.g., first interrogatories or answers to second interrogatories, and the signature of the serving party or attorney.

90.10  DISCHARGE OF GARNISHEE - JUDGMENT IN GARNISHMENT

(a) If the garnishee admits in its answers to interrogatories that any property subject to garnishment is in the garnishee's possession, the garnishee, without further order of the court, shall pay or deliver such property into court or to the attorney for the party on whose behalf the order of garnishment was issued not later than ten days after the return date of the writ of garnishment or levy or, in the case of a continuous wage garnishment, not later than ten days after the end of each pay period subject to the garnishment.  Timely payment or delivery of such property into court thereby discharges the garnishee from further liability on account of the property subject to garnishment so paid or delivered.

(b) If the garnishor files exceptions to the garnishee's answers to interrogatories or if a third party has intervened as provided by Rule 90.09, the court or jury shall determine all controverted issues raised by garnishor's exceptions to the garnishee's answers to interrogatories, the garnishee's response thereto, and any claim asserted by a third party who has intervened.  The court shall enter judgment in accordance with the findings of the court or jury and shall order that any property not previously delivered to the officer or the court be delivered to the officer or paid into court or to the attorney for the party on whose behalf the order of garnishment was issued within such time as the court shall direct.  If the property is not delivered to the officer or paid into court or to the attorney for the party on whose behalf the order of garnishment was issued within such time, the court may enter judgment against the garnishee for the value of the property.

90.11  DISBURSEMENT

When a trial of issues under Rule 90.10(b) is not required and where no motion to quash the garnishment in whole or in part or an objection to a claim of exemption is pending, property paid or delivered into court under Rule 90.10(a) shall be disbursed to the garnishor, less costs, within ten days and without order of the court if the garnishee has not requested additional costs under Rule 90.12(a).  If the garnishee has requested additional costs under Rule 90.12(a), the property paid or delivered into the court less costs shall be disbursed to the garnishor within ten days after the court has determined the additional costs to be awarded the garnishee.

Property paid or delivered into court or to the attorney for the party on whose behalf the order of garnishment was issued shall not be disbursed without order of the court when a trial is required by Rule 90.10(b).

90.12  COSTS AND ALLOWANCES

(a) Allowance to Garnishee if Interrogatory Answers are Not Excepted to or Denied.  If by interrogatory answers not excepted to or denied it appears that the garnishee has property subject to garnishment, the garnishee may deduct a one-time sum not to exceed $20, or the fee previously agreed upon between the garnishee and the judgment debtor if the garnishee is a financial institution, for the trouble and expense of answering and withholding the funds to be paid out of the property subject to garnishment.  The fee shall not be a credit against the court-ordered judgment and shall be collected first.  The garnishee may file a motion for additional costs, including attorney fees reasonably incurred in answering the interrogatories, in which case the court may make such award as it deems reasonable.  The motion shall be filed on or before the date the garnishee makes payment or delivers the property subject to garnishment into court.

(b) Allowance to Garnishee if Garnishor Does Not Recover Judgment Against Garnishee.  If the garnishor files exceptions to the garnishee's interrogatory answers but does not obtain a judgment against the garnishee, all of the costs attending such garnishment shall be taxed against the garnishor.  The court in such a case shall render judgment in favor of the garnishee and against the garnishor for an amount sufficient to reimburse the garnishee for time and expenses, including attorney fees reasonably incurred.  The fact that the garnishee affirmatively asserted in good faith an exemption belonging to the judgment debtor shall not deprive the garnishee of the right to costs and attorney fees as otherwise provided herein.

*       *       *

90.15  GARNISHMENT OF WAGES - NOTICE OF WAGE EXEMPTION STATUTE REQUIRED

No notice, summons, or writ of garnishment issued or served under sections 525.010 to 525.310, RSMo, shall attach or purport to attach any wages in excess of the amounts prescribed in subsection 2 of section 525.030, or any applicable federal law, and each such notice, summons, or writ shall have clearly and legibly reproduced thereon the provisions of subsections 2, 5 and 6 of section 525.030, RSMo.

At any time after service of the summons and writ of garnishment, but not later than 90 days after any specific payment shall have been made by the garnishee to the garnishor with respect to that specific payment, any person against whom such writ has been issued may file with the issuing court a motion setting forth good cause why such garnishment ought to be stayed, set aside, or quashed.  Reasonable notice of the time of the hearing on the motion shall be given to all interested parties.

90.19  REPORTING JUDGMENT BALANCE - REMAINING DUE - PAYMENT ON THE RECORD

(a) A judgment creditor may, prior to the expiration of a judgment, file a statement of judgment balance remaining due with the court, and any payment referenced in the statement shall be deemed a payment on the record for the purposes of section 516.350, RSMo.  The statement of judgment balance remaining due shall show the amount still owed to the judgment creditor as of a date certain.  Copies of the statement shall be served by ordinary mail on the judgment debtor.  A statement filed pursuant to this Rule 90.19(a) shall renew the six month filing requirement of Rule 90.19(b), if applicable.

(b) In the case of a continuous wage garnishment or in any case in which the garnishor has elected to have payments made directly to its attorney pursuant to Rule 90.02(e), the garnishor shall file with the issuing court a statement of judgment balance remaining due.  The statement shall indicate all payments received by the garnishor within the preceding six months and the remaining unsatisfied portions of the judgment, which may include all unsatisfied post-judgment interest and costs.  The statement shall be filed not later than 20 days after the close of each such six-month period.  The statement shall be filed with the issuing court beginning six months after issuance of the garnishment and shall continue every six months thereafter until the garnishment is satisfied or no longer effective.

Copies of the statement shall be served by ordinary mail on the garnishee and judgment debtor.  In the case of garnishment other than a continuous wage garnishment in which the garnishor has elected to have payments made directly to its attorney pursuant to Rule 90.02(e), a statement of judgment balance need not be filed if the garnishor files a new garnishment in the same case and against the same defendant prior to the date the statement would have been required to be filed with the issuing court.

(c) If a garnishor fails to file a statement of judgment balance remaining due as provided in Rule 90.19(b), the court shall, upon its own motion or that of any party or junior garnishor, terminate the garnishment.

(d) Any party may file with the issuing court a motion for accounting of judgment balance up to 30 days after satisfaction of the judgment.

(e) As to any garnishment in effect when the judgment is no longer enforceable for any reason, whether due to satisfaction, accord, setting aside the judgment, reversal on appeal, or otherwise, the garnishor shall provide notice in writing to the garnishee not later than 20 days after such event or occurrence.  Any final remittance from the garnishee that exceeds the amount necessary to fully satisfy the judgment shall be returned within 10 days to the garnishee.

3.  It is ordered that notice of this order be published in the Journal of The Missouri Bar.

4.  It is ordered that this order be published in the South Western Reporter.