Legal Question in Business Law in Virginia

Re: Business

This sounds like a homework assignment or question in a text book. Well, I will discuss because I think being a mentor and helping people understand the law, even students, is a good thing. But be careful to also do your own research and work.

I do not remember SNIADACH v. Family Finance Corp, and because you are supposed to do your own internet research on that (you even included that in the question you posted, which wasn't smart!) I will leave you to do that yourself.

But if I got this as a case, the first thing I would notice is that BOSS BOB is not a party to the wage assignment.

So my first advice to Bob would be to get a new lawyer.

Larry Loan and Danny Debtor entered into both (a) loan agreement and (b) a security agreement to secure the loan by assigning his future income.

However, Bob Boss is an innocent bystander in this. Boss Bob did not AGREE to this arrangement. The wage assignment AUTHORIZES and directs the employer to pay over the money, but does not create a contractual obligation on the part of Boss Bob to Larry Loan. First, Boss Bob did not sign anything or agree to anything. Second, Boss Bob has no "consideration" (return promise) to make the contract enforceable.

I have not looked at SNIADACH but I will bet you it involves a COURT-ORDERED GARNISHMENT. If the court orders a "garnishment" then YES it is legally binding. And in that case yes Boss Bob is cooked. Boss Bob would be on the hook to pay the amount.

I would bet that SNIADACH v. FAMILY FINANCE CORP involves an actual garnishment proceedings, which is ordered by the court. Boss Bob might very well have to comply with a court order, but has no legal obligation to pay simply based on a letter alone.

Garnishments are done according to a specific statute.

Remember that the Boss has no way of knowing if the loan has already been paid off. Is he paying the same loan a SECOND time? He would need to have a court tell him if the money is still owed, or has already been paid.

AGAIN: I do not know SNIADACH, and you are going to have to READ that case very carefully.