W & D Acquisition, LLC v. First Union National Bank

Bank Must Process Wage Garnishments Within Reasonable Time

This case involved a dispute over how quickly a bank must process wage garnishments. W & D Acquisition had a court order to garnish wages from someone's bank account at First Union National Bank. The bank processed the garnishment, but W & D argued the bank took too long to comply with the court order, causing them financial harm.

The trial court initially ruled in favor of the bank, saying it only had to meet the legal deadline (by midnight of the required day) regardless of when during that day it actually processed the garnishment. However, the Connecticut Supreme Court disagreed and reversed this decision. The higher court ruled that banks must process garnishments within a "reasonable time" considering all the circumstances, not just technically meet the midnight deadline. The court allowed W & D to pursue their full damage claim rather than just a small nominal amount.

What this means for workers: While this case involved a business dispute, it establishes that financial institutions handling wage garnishments must act promptly and reasonably. This could potentially help workers whose wages are being garnished by ensuring banks process these orders efficiently rather than waiting until the last possible moment.