Funds Received as Part of a Settlement in a Personal Injury Case Are Exempt From Execution on Judgments Representing Child Support Arrearages
(January 2010) By Tamiya N. Wilkes, Associate
For more information, contact Paul Farquharson.
Rosemann v. Salsbury, Clements, Bekman, Marder & Adkins, LLC,
o. 39 (Md. January 13, 2010)
http://mdcourts.gov/opinions/coa/2010/39a09.pdf
In 1999, Rosalind Rosemann ("Ms. Rosemann") was ordered to
pay child support to Curtis O. Rosemann ("Mr. Rosemann") for the support of
their minor children, following the couple's absolute divorce. Ms. Rosemann was
ordered to pay $533.61 per month, however, she failed to pay the child support
as ordered. Therefore, in 2001, Mr. Rosemann obtained two judgments against Ms.
Rosemann for the child support arrearages – totaling $34,561.08 – thereby,
making Mr. Rosemann the judgment creditor of Ms. Rosemann.
Four years after Mr. Rosemann obtained the judgments against
his ex-wife, Ms. Rosemann was injured on board an America West ("the airline")
flight. Ms. Rosemann filed suit against the airline and hired the law firm of
Salsbury, Clements, Bekman, Marder & Adkins, LLC ("the law firm") to represent
her regarding her personal injury claim. The airline and Ms. Rosemann reached a
settlement in the amount of $30,000.00.
Upon learning about Ms. Rosemann's settlement, Mr. Rosemann
filed two writs of garnishment in the Circuit Court for Howard County against
the law firm, seeking to garnish funds that the law firm held for the benefit of
Ms. Rosemann.
The law firm filed a Motion for Summary Judgment claiming
that the settlement funds that it held for Ms. Rosemann, were exempt from
execution on a judgment pursuant to Md. Code Ann., Cts. & Jud. Proc. §
11-504(b)(2) which states, in part that "[m]oney payable in the event of
sickness, accident, injury, or death of any person, including compensation for
loss of future earnings" is exempt from execution on a judgment.
Although the statute clearly applied to the facts of this
case, Mr. Rosemann argued that an exception should be made for individuals
seeking to execute judgments based on child support arrearages. Mr. Rosemann's
public policy argument was based on the fact that during the recent years, the
Maryland Legislature has cracked down on "dead-beat parents" through statutory
changes, making it easier to collect child support arrearages or put pressure on
the debtor to pay.
The trial court granted summary judgment in favor of the law
firm. The Court of Special Appeals affirmed the judgment of the trial court. The
Court of Appeals granted Mr. Rosemann's Petition for Writ of Certiorari and
considered Mr. Rosemann's argument.
The Court of Appeals affirmed the judgment of the Court of
Special Appeals and held that, based on the plain language of Md. Code Ann.,
Cts. & Jud. Proc. § 11-504(b)(2), the Legislature intended for funds received as
part of a settlement in a personal injury case to be exempt from execution on
all judgments, including judgments representing child support arrearages. The
Court stated that the legislature has taken several steps to ensure that
non-supporting parents honored their obligations, and if the Legislature wanted
to enact an exception permitting a judgment creditor to execute on exempted
property where the judgment is for domestic support arrearages it could have
done so. Therefore, the Court declined to judicially create an exemption to Md.
Code Ann., Cts. & Jud. Proc. § 11-504(b)(2) that the Legislature did not see fit
to impose.