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Smart Summary

Factual and Procedural Background

Union Electric filed a petition for damages and an application for writ of attachment in the Circuit Court of Cole County on July 18, 1991, seeking $428,410.50 in damages against Michael H. Anderson, Janet J. Anderson, and Anderson Trucks, Trailer Equipment Sales, Inc., based on breach of contract, unjust enrichment, and conversion. The court approved an attachment bond of $350,000 and issued the writ of attachment after Union Electric posted the bond. The case was transferred to Pettis County Circuit Court following defendants' application for change of venue. The defendants filed a motion to dissolve the writ of attachment, which the Pettis County Circuit Court sustained on August 2, 1994, holding the bond insufficient under Missouri statutory law and concluding that the court lacked jurisdiction to issue the writ due to the bond's insufficiency. Union Electric then sought a writ of mandamus to compel the Pettis County Circuit Court judge to exercise jurisdiction over the attachment proceedings.

Legal Issues Presented

  1. Whether Missouri statutory law (§ 521.070) or Supreme Court Rule 85.08(a) governs the sufficiency of the attachment bond.
  2. Whether the insufficiency of the attachment bond deprives the circuit court of jurisdiction over the attachment proceedings.
  3. Whether the circuit court must afford the claimant an opportunity to cure a defective attachment bond.

Arguments of the Parties

The opinion does not contain a detailed account of the parties' legal arguments.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Reichert v. Lynch, 651 S.W.2d 141, 143 (Mo. banc 1983) Supremacy of Supreme Court procedural rules over conflicting statutes. Confirmed that Rule 85.08, as a procedural rule promulgated under Missouri Constitution article V, § 5, supersedes conflicting statutory provisions regarding attachment bonds.
Salenia A.B. v. Air National Aircraft Sales, Inc., 712 S.W.2d 386, 389 (Mo.App. 1986) Rule 85.08 is procedural and prevails over conflicting statutes. Supported the conclusion that Rule 85.08 governs the bond requirements rather than the statute § 521.070.
Wilkes v. Missouri Highway and Transportation Commission, 762 S.W.2d 27, 28 (Mo. banc 1985) Distinction between procedural and substantive law. Used to clarify that attachment proceedings are procedural and thus governed by procedural rules.
Shepherd v. Consumers Cooperative Assoc., 384 S.W.2d 635, 640 (Mo. banc 1964) Definition of substantive versus procedural law. Reinforced the classification of attachment proceedings as procedural remedies rather than substantive rights.
State v. Taylor, 298 Mo. 474, 251 S.W. 383, 388 (1923) Attachment as a prejudgment remedy and procedural device. Established that attachment does not create the right to judgment but provides a means of enforcing a judgment, supporting the procedural nature of attachment.
Lubrication Engineers, Inc. v. Parkinson, 341 S.W.2d 876, 878 (Mo.App. 1961) Distinction between jurisdiction over proceedings and jurisdiction over property in attachment cases. Clarified that the court’s jurisdiction over attachment proceedings is independent of bond sufficiency and jurisdiction over attached property.

Court's Reasoning and Analysis

The court first addressed the conflict between Missouri statutory law (§ 521.070) and Supreme Court Rule 85.08(a) concerning the required amount of the attachment bond. The statute requires a bond "at least double" the amount claimed, while the rule requires a bond "not exceeding double" the amount claimed. The court held that because the Missouri Constitution authorizes the Supreme Court to promulgate rules of practice and procedure with the force of law, and those rules supersede conflicting statutes in matters of procedure, Rule 85.08(a) controls over § 521.070.

Next, the court distinguished between jurisdiction over the attachment proceedings and jurisdiction over the property sought to be attached. The court explained that while the court does not have jurisdiction over the property until a sufficient bond is posted, jurisdiction over the attachment proceedings is ancillary to the main action and does not depend on bond sufficiency.

The court further noted that the procedural rules governing attachments allow the court to retain jurisdiction to remedy defects in the attachment process, such as ordering a new bond (Rule 85.11) or requiring a new affidavit (Rule 85.14(c)(2)), even if the writ was initially improperly issued.

Accordingly, the court held that the Pettis County Circuit Court erred in concluding it lacked jurisdiction due to the bond amount and must reconsider the bond's sufficiency under Rule 85.08(a). If found insufficient again, the court must allow Union Electric to file a new bond.

Holding and Implications

The alternative writ of mandamus is made peremptory.

The court's holding requires the Pettis County Circuit Court to exercise jurisdiction over the attachment proceedings and to redetermine the sufficiency of the attachment bond under Rule 85.08(a). If the bond is again found insufficient, the court must afford Union Electric the opportunity to post a new bond. This decision clarifies the supremacy of procedural rules over conflicting statutes in Missouri attachment proceedings and reinforces the distinction between jurisdiction over proceedings and jurisdiction over property. The ruling directly affects the parties by compelling the lower court to act but does not establish new precedent beyond the application of existing constitutional and procedural principles.

STATE EX REL. UNION ELECTRIC COMPANY, RELATOR, v. HONORABLE DONALD L. BARNES, JUDGE, CIRCUIT COURT, PETTIS COUNTY, RESPONDENT.

LIMBAUGH, Judge.

Relator Union Electric seeks a writ of mandamus to compel Respondent, Judge Donald L. Barnes, to exercise jurisdiction in an action for writ of attachment. The Court of Appeals, Western District, denied relator's petition for a writ of mandamus, but, thereafter, this Court issued an alternative writ of mandamus. We now make that writ peremptory.

On July 18, 1991, Union Electric filed a petition for damages and an application for writ of attachment with supporting affidavit in the Circuit Court of Cole County. In the petition, Union Electric claimed damages of $428,410.50 against Michael H. Anderson, Janet J. Anderson, and Anderson Trucks, Trailer Equipment Sales, Inc., on grounds of breach of contract, unjust enrichment, and conversion.

The circuit court took up the application for writ of attachment the same day it was filed. After approving an attachment bond in the amount of $350,000, the court entered its "Order to Issue Writ for Attachment." Immediately thereafter, Union Electric posted the bond, and the circuit clerk issued the writ.

The defendants filed a motion to dissolve the writ of attachment in the Pettis County Circuit Court, the case having been transferred there on defendants' application for change of venue. On August 2, 1994, after a series of hearings and extensive briefing, the court sustained the motion to dissolve. Although the court noted that Rule 85.08 (a) requires a bond "not exceeding double" the judgment sought, it relied instead on § 521.070, RSMo 1986, which requires the bond amount to be "at least double" the judgment sought. Because Union Electric sought judgment for $428,410.50, the court determined that the $350,000 bond was per se insufficient. Furthermore, the court held that "[Union Electric] has the burden of complying with the statutory requirements of the bond and the failure to do so deprives the court of its initial authority to issue the writ of attachment." (Emphasis added.)

The circuit court's determination that it never acquired jurisdiction — "its initial authority to issue the writ" — proceeds from two fallacious assumptions: 1) that § 521.070 supersedes Rule 85.08 (a); and 2) that the insufficiency of the bond deprives the court of jurisdiction over the attachment proceedings. Section 521.070 states, in pertinent part:

The bond shall be executed by the plaintiff, or some responsible person as principal, and one or more sureties, resident householders of the county in which the action is to be brought, in a sum at least double the amount sworn to in the affidavit. . . .

(Emphasis added.) Rule 85.08 (a), on the other hand, states in pertinent part:

The claimant shall file a sufficient bond, approved by the court, executed by the claimant as principal and one or more sufficient sureties to the effect that they are bound to the State of Missouri in an amount set by the court but not exceeding double the amount claimed.

(Emphasis added.) Although the circuit court attempted to reconcile the statute and the rule, they are, in fact, conflicting. If the statute controls, the bond is indeed insufficient; if the rule controls, the bond may be, but is not necessarily, insufficient. Having decided that the statute controlled, the circuit court had no need to address the sufficiency of the bond under the rule.

The Missouri Constitution of 1945 authorized the Supreme Court to "establish rules of practice and procedure for all courts." Mo. Const. art. V, § 5. In 1976, the citizens of Missouri amended article V so that those rules "shall have the force and effect of law." Id. Consequently, rules promulgated pursuant to article V, § 5 "supersede all statutes and existing court rules inconsistent therewith," Rule 41.02; if there is a conflict between this Court's rules and a statute, the rule always prevails if it addresses practice, procedure or pleadings. Reichert v. Lynch, 651 S.W.2d 141, 143 (Mo. banc 1983). The Court's rules may only be "annulled or amended in whole or in part by a law" enacted solely for that purpose. Mo. Const. art V, § 5. In Salenia A.B. v. Air National Aircraft Sales, Inc., 712 S.W.2d 386, 389 (Mo.App. 1986), the court of appeals, applying the foregoing principles, held that Rule 85.08 is procedural and, thus, prevailed over § 521.050, RSMo 1986. We agree.

Procedural laws prescribe a method for enforcing rights or obtaining redress for their invasion. Wilkes v. Missouri Highway and Transportation Commission, 762 S.W.2d 27, 28 (Mo. banc 1985). Substantive laws, on the other hand, define and regulate those rights. In a sense, substantive laws create rights; procedural laws provide remedies. Shepherd v. Consumers Cooperative Assoc., 384 S.W.2d 635, 640 (Mo. banc 1964).

An attachment proceeding is a prejudgment remedy, or part of a remedy, by which property can be taken into custody to satisfy an anticipated judgment. 7 C.J.S. Attachments § 2a (1980). The attachment does not create the right to a judgment or debt; rather, it provides a means of enforcing a judgment. State v. Taylor, 298 Mo. 474, 251 S.W. 383, 388 (1923). It follows that attachments are procedural in character, and Rule 85.08 therefore must supersede § 521.070. Id.

Even if the circuit court had relied on Rule 85.08 (a) rather than § 521.070 in determining that the $350,000 bond was insufficient, the court was still empowered, even required, to act on matters pertaining to the attachment proceeding. There is a difference between jurisdiction over the proceedings and jurisdiction over the property sought to be attached. To be sure, the court does not have jurisdiction over the property sought to be attached until the writ of attachment is perfected by the posting of a sufficient bond. Lubrication Engineers, Inc. v. Parkinson, 341 S.W.2d 876, 878 (Mo.App. 1961). Jurisdiction over the attachment proceedings, however, is derived from the main action because attachment proceedings are not independent, but ancillary to the main action. Therefore, jurisdiction over the proceedings is not at all dependent on the sufficiency of the bond and the court's jurisdiction over the property.

Indeed, the rules governing attachments often permit or require the court to exercise jurisdiction over attachment proceedings even though the writ of attachment may have been improperly issued. For example, Rule 85.11 authorizes the court to order that a new bond be furnished where an existing bond is deemed insufficient. Although the writ was improperly issued and the court lacks jurisdiction over the property, the court does have jurisdiction to allow the claimant to cure the defective bond. Similarly, in cases where the writ was issued on the basis of a faulty affidavit, Rule 85.14 (c)(2) permits the court to direct that a new affidavit be filed, despite the initial impropriety of the writ.

We hold that the circuit court has jurisdiction over the attachment proceedings and that the circuit court must redetermine the sufficiency of the attachment bond under Rule 85.08 (a). Furthermore, should the circuit court again determine that the bond is insufficient, it may then afford the relator the opportunity to file a new and sufficient bond.

The alternative writ of mandamus is made peremptory.

All concur.

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STATE EX REL. UNION ELEC. CO. v. BARNES
(Feb 21, 1995)