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Cook v. NC Two LP

The creditor's notice of a garnishment action was effective, because it substantially complied with the statutory requirements that notice be sent not more than three days after service of summons of garnishment on the bank.

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We granted Kenneth W. Cook’s discretionary appeal of the trial court’s order denying his traverse to this garnishment action. Because the trial court correctly found that NC Two substantially complied with the notice statute, we affirm. The undisputed facts are that on March 30, 2009, NC Two, L.P. “NC Two” filed a garnishment action against Athens First Bank & Trust Company, seeking to garnish funds from Cook’s account. The Sheriff’s Office served the garnishment action on the bank on April 9, 2009. Eight business days later, on April 21, 2009, NC Two sent Cook written notice of the action via the U.S. Mail. Cook filed a traverse on May 1, 2009, asserting, among other defenses, that he had not been properly served with the action.

After a hearing, the trial court denied the traverse. The trial court held that procedures at the superior court clerk’s office thwarted NC Two’s diligent effort to comply with the three-day requirement. It also determined that once NC Two learned that the Sheriff’s Office had served the bank, it immediately sent notice of the action to Cook. Therefore, the trial court held, NC Two had substantially complied with the notice statute.

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