Sligh v. First National Bank of Holmes County
Mississippi Supreme Court
704 So. 2d 1020 (1997)
- Written by Rose VanHofwegen, JD
Facts
Gene Lorance drove drunk and uninsured and caused a car accident that left William Sligh paralyzed. Lorance was a reckless habitual drunk driver who had already been in multiple car accidents, and he went to prison for injuring Sligh. Sligh and his wife (plaintiffs) sued and obtained a $5 million default judgment against Lorance, but Lorance had no assets except for interests in two spendthrift trusts his mother set up before she died. The trustee held discretion to pay the income to Lorance for life, with the remainder directed to two others. The Slighs sued the trustee, First National Bank of Holmes County, the two remaindermen, and Lorance (defendants) to garnish the trust accounts. The Slighs claimed Lorance’s mother knew Lorance was a habitual drunk with mental deficiencies who had been treated unsuccessfully for alcoholism, knew about his drunk-driving habits and accidents, and established the trusts to enable him to continue that lifestyle while shielding his trust interests from creditors. The trial court dismissed, reasoning the Slighs could not garnish the spendthrift trusts. The Slighs appealed.
Rule of Law
Issue
Holding and Reasoning (Mills, J.)
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