12-1598.13. Contempt proceedings; default of garnishee

A. If the judgment creditor fails to comply with any duty imposed upon him by this article, the court shall, upon petition of any party to the proceedings affected by such failure and after notice, hold a hearing to determine whether such failure to comply, if any, was occasioned by mistake, inadvertence or excusable neglect. If the court determines that any failure to comply was not the result of mistake, inadvertence or excusable neglect, the court shall find the judgment creditor in contempt and shall award the petitioner all of the following:

1. An amount to compensate for actual losses, if any, caused by the failure to comply.

2. Reasonable attorney fees, if the petitioner was represented by an attorney at such hearing.

3. Court costs.

4. An additional amount of not less than one hundred nor more than one thousand dollars.

B. If a garnishee fails after written notice to deliver nonexempt earnings to the judgment creditor within thirty days after the ending date of the pay period, or fails after written notice to deliver the nonexempt earnings statement to the judgment debtor with the exempt earnings, the judgment debtor may petition the court for relief. The court shall, after notice, hold a hearing to determine if such failure, if any, was wilful or the result of gross negligence. If the court determines that the failure was wilful or the result of gross negligence, the court shall find the garnishee in contempt and shall award the judgment debtor all of the following:

1. An amount to compensate for actual losses, if any, caused by the failure to comply.

2. Reasonable attorney fees, if the judgment debtor was represented by an attorney at such hearing.

3. Court costs. The court may award the judgment debtor an additional amount not to exceed four hundred dollars.

C. While an order of continuing lien pursuant to section 12-1598.10 is in effect, if the garnishee fails to deliver to the judgment creditor the nonexempt earnings of the judgment debtor, if any, and the copy of the nonexempt earnings statement within fourteen days of the end of the pertinent pay period, and the judgment creditor thereafter delivers a written demand for the nonexempt earnings and statement, and the garnishee does not comply within fourteen days of the receipt of the written demand, the judgment creditor may petition the court for relief. The court shall, after notice, hold a hearing to determine whether the failure to comply with the written demand within fourteen days of receipt, if any, was wilful or the result of gross negligence. If the court determines that the failure was wilful or the result of gross negligence, the court shall find the garnishee in contempt and shall award the judgment creditor all of the following:

1. An amount to compensate for actual losses, if any, caused by the failure to comply.

2. Reasonable attorney fees, if the judgment creditor was represented by an attorney at such hearing.

3. Court costs. The court may award the judgment creditor an additional amount not to exceed four hundred dollars.

D. If after conducting a hearing required by subsection A, B or C of this section, the court determines that a petition filed pursuant to subsection A, B or C of this section is without merit, the court may award reasonable attorney fees to any party adversely affected by the petition, if the party adversely affected was represented by an attorney at such hearing.

E. A party may request the court to order the relief set forth in subsection A, B, C or D of this section in the case which is the basis of the garnishment.

F. This section does not restrict a party from pursuing any common law remedies.

G. The garnishee may conclusively rely on and is not liable to the judgment debtor for acting in reliance on the validity and authenticity of a garnishment which is regular on its face.

H. If a garnishee fails to answer within the time specified in the writ, the party for whom the writ has been issued may petition the court for the issuance of an order requiring the garnishee to appear before the court at a time and place specified in the order to answer the writ or to file and serve a copy of the answer on the party for whom the writ has been issued, or on his attorney if the party is represented by counsel, at least five days before the appearance date. If the garnishee fails to appear or file and serve the answer after the service of the order requiring the appearance in person or answer on the garnishee, the court may render judgment by default against the garnishee for the full amount of the judgment against the judgment debtor. The court may award a reasonable attorney's fee to the party for whom the writ was issued and against the garnishee if the writ was not answered within the time specified in the writ and a petition requiring the garnishee to appear or answer was filed as provided in this section.