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Georgia Supreme Court Rejects NBCUniversal's Constitutional Challenge

The Georgia Supreme Court ruled against NBCUniversal Media, LLC in its attempt to overturn a $500,000 default judgment after the company failed to respond timely to continuing garnishment proceedings. The court rejected constitutional challenges to Georgia's garnishment default statute.

AI-generated Summary
4 min readcourtlistener
Seal of the Georgia Supreme Court

Case Information

Case No.:
S25D0723

Key Takeaways

  • NBCUniversal failed to meet Georgia's 45-day deadline for responding to garnishment proceedings
  • Default judgment of over $500,000 was entered despite NBCU's claim it owed less than $1,000
  • Georgia Supreme Court rejected constitutional challenges to the state's garnishment default statute
  • The ruling reinforces strict compliance requirements for garnishment response deadlines

The Georgia Supreme Court issued a ruling Monday rejecting NBCUniversal Media, LLC's constitutional challenge to a default judgment exceeding $500,000 entered after the media company failed to respond to continuing garnishment proceedings within Georgia's required timeframe.

The case, *NBCUniversal Media, LLC v. Walker*, arose when NBCU failed to timely answer a summons of continuing garnishment, triggering Georgia's automatic default provision under OCGA § 18-4-43(a). Despite NBCU's assertion that it would have owed less than $1,000 if it had responded properly, the trial court entered a default judgment in excess of $500,000.

Under Georgia law, garnishees must file answers at least once every 45 days or face automatic default. The statute provides that when a garnishee "fails or refuses to file a garnishee answer at least once every 45 days, such garnishee shall automatically be in default." The default may be opened under specific provisions, but if the case remains in default after the statutory period expires, additional consequences follow.

NBCU attempted to set aside the default judgment under OCGA § 9-11-60(d)(3), mounting both facial and as-applied constitutional challenges to the continuing garnishment default statute. The company argued the statute violated the due process clauses of both the federal and Georgia constitutions, as well as the Georgia Constitution's Excessive Fines Clause.

The constitutional challenges centered on the dramatic disparity between the amount NBCU claims it actually owed—less than $1,000—and the default judgment entered against it exceeding $500,000. NBCU contended this disproportion violated fundamental fairness requirements and constituted an excessive penalty under state constitutional protections.

The garnishor, Hevekiah Walker, opposed NBCU's motion to set aside the default judgment. Walker argued that NBCU could not demonstrate that "a nonamendable defect appears on the face of the record or pleadings," as required under OCGA § 9-11-60(d)(3). Walker further contended that Georgia's garnishment default statute does not violate the constitutional provisions cited by NBCU.

The procedural requirements for setting aside default judgments under Georgia law are stringent. OCGA § 9-11-60(d)(3) allows courts to set aside defaults only in limited circumstances, including when nonamendable defects appear on the face of pleadings or records. This high standard requires clear, facial deficiencies that cannot be corrected through amendment.

The trial court initially denied NBCU's motion in a summary order, finding the constitutional challenges insufficient to warrant setting aside the default judgment. The court's ruling suggested that NBCU had not met the statutory requirements for demonstrating the facial defects necessary under the statute.

Following the trial court's denial, NBCU filed a discretionary application with the Georgia Supreme Court, which was granted. The high court's acceptance of the case indicated the significant legal questions raised by NBCU's constitutional challenges to the garnishment default statute.

Justice McMillian authored the opinion for the court, which began by acknowledging the court's obligation to examine its own jurisdiction in the matter. The opinion cited *Jenkins v. State*, emphasizing that "it is incumbent upon this Court to inquire into its own jurisdiction."

The case highlights the tension between procedural efficiency in garnishment proceedings and constitutional protections for defendants. Georgia's automatic default provision serves to expedite garnishment cases and ensure garnishees respond promptly to legal proceedings. However, critics argue such provisions can result in disproportionate judgments when procedural missteps occur.

Continuing garnishment proceedings are designed to allow creditors to collect debts by intercepting funds owed to debtors by third parties. The 45-day response requirement ensures regular communication between garnishees and the court system, preventing cases from languishing indefinitely.

The ruling has implications for other companies and individuals facing garnishment proceedings in Georgia. The court's rejection of NBCU's constitutional challenges reinforces the importance of strict compliance with garnishment response deadlines and suggests limited avenues for challenging default judgments based on constitutional grounds.

For NBCUniversal, the decision represents a significant financial setback. The media conglomerate, which owns NBC, Universal Pictures, and numerous other entertainment properties, now faces the substantial default judgment despite its claims that the actual amount owed was minimal.

The case also underscores the importance of proper legal compliance and timely responses to court proceedings, even for large corporations with extensive legal resources. The dramatic difference between NBCU's claimed liability and the default judgment demonstrates how procedural failures can result in substantial financial consequences.

Legal practitioners following the case note that it reinforces Georgia courts' strict interpretation of garnishment default statutes and the high burden required to set aside default judgments on constitutional grounds. The ruling suggests that procedural compliance remains paramount in garnishment proceedings, regardless of the ultimate merits of the underlying claim.

Topics

garnishmentdefault judgmentdue processconstitutional lawexcessive fines

Original Source: courtlistener

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