An individual who holds money or property that belongs to a debtor subject to an attachment proceeding by a creditor.
For example, when an individual owes money but has for a source of income only a salary, a creditor might initiate Garnishment proceedings. If the creditor is successful, a certain portion of the debtor's salary will be automatically sent to the creditor from each paycheck. In such case, the debtor's employer is the garnishee.
n. a person or entity, quite often a bank or employer, which receives a court order to not release funds held for or owed to a customer or employee, pending further order of the court. (See: garnish, garnishment)
GARNISHEE, practice. A person who has money or property in his possession,
belonging to a defendant, which money or property has been attached in his
hands, and he has had notice of such attachment; he is so called because he
has had warning or notice of the attachment.
2. From the time of the notice of the attachment, the garnishee is
bound to keep the property in his hands to answer the plaintiff's claim,
until the attachment is dissolved, or he is otherwise discharged. Vide Serg.
on Att. 88 to 110; Com. Dig. Attachment, E.
3. There are garnishees also in the action of detinue. They are persons
against whom process is awarded, at the prayer of the defendant, to warn
them to come in and interplead with the plaintiff. Bro. Abr. Detinue,
passim.