Nelson garnishment hearing set

McMinnville dentist James Nelson claims funds belonging to other members of his family were garnished inappropriately last month after a jury returned a large judgment against him and his dental business in a malicious prosecution case.

Plaintiffs Linda Hixson and Sherry McMullen countered by noting Nelson was listed on all seven accounts, making them fair game for garnishment.

Yamhill County Circuit Court Judge Cynthia Easterday will hear legal arguments on the issue at 11 a.m. Thursday, May 31. The hearing is scheduled to last two hours.

Two years ago, Nelson filed a civil suit accusing former employees Hixson and McMullen of theft of wages and benefits. The women filed a counterclaim accusing Nelson and his company of malicious prosecution in a criminal case, later dismissed, brought against them in 2015. They prevailed at trial.

In April, a local jury concluded a two-week trial by dismissing Nelson’s claims against Hixson and McMullen, upholding theirs against him. The jury awarded each woman $250,000, plus legal costs from the 2015 case.

Neither side can receive legal costs related to the current case.

As Nelson filed a series of challenges and appeals, attorneys for the women successfully garnished $420,885 from accounts at Wells Fargo Bank in McMinnville.

Easterday denied Nelson’s motion seeking to overturn the jury’s ruling, or in the alternative, order a new trial. However, she approved Nelson’s motion to grant him a stay of enforcement and hear arguments on the post-trial garnishments.

In a declaration to the court, Nelson’s wife, Wendy stated:

“We have been banking at Wells Fargo since approximately 2009. Over the years, we have opened accounts for our children, both now 21.

“While we may occasionally give gifts to them by depositing money into the accounts, (they) are the only ones who withdraw from their accounts.”

In the declaration, she further claimed that a joint spousal account holding nearly $174,000 included about $52,500 belonging to her as 50 percent owner of tax refunds and timberland proceeds. Another account, Nelson said, was a joint college savings account for adopted children

But attorney Glen McClendon, representing Hixson, told the court, “There is no provision for the court to undo those garnishments.”

Easterday, in addition to lengthy legal submissions by both sides, will hear oral arguments  Thursday.