The Connecticut Supreme Court advance released an opinion about marshal’s fees for a postjudgment levy of an execution, which I review below.
Marshal’s Fee for Levy of an Execution
Corsair Special Situations Fund, L.P. v. Engineered Framing Systems, Inc. – After obtaining a $5 million judgment in federal court in Maryland, plaintiff learned that a Connecticut company owed defendant some $3 million. Plaintiff domesticated the judgment and engaged a state marshal to levy an execution. The Connecticut company ignored the execution and paid some $2.3 million to defendant and other creditors. Plaintiff obtained a turnover order and ultimately recovered the funds. The marshal claimed a 15% fee under CGS § 52-261 (a)(F) “for the levy of an execution, when the money is actually collected and paid over, or the debt . . . is secured by the officer”. The Connecticut District Court ruled for the marshal. Plaintiff appealed to the Second Circuit who concluded the statute was ambiguous and asked our Supreme Court whether the statute entitled the marshal to 15% even though (i) the execution was ignored; (ii) the funds were paid to plaintiff, not the marshal; and (iii) the funds were paid only after plaintiff obtained a turnover order. The Supreme Court concluded the marshal was entitled to 15% because the phrase “by the officer” modifies only “the debt is secured” and not “the money is actually collected and paid over.” In other words, if the marshal properly serves the writ and the money is actually paid, the marshal is entitled to 15% regardless of whether the writ is ignored or the money paid to the judgment creditor, not the marshal.