The legal responsibility of the garnishee in the seizure of a debtor's assets held by a third party: A comparative study between the Saudi system and Egyptian law

Abstract

This study aims to clarify the special legal liability of the garnishee in the attachment of the debtor’s property held by a third party, as this form of attachment constitutes one of the means of indirect enforcement that enables the creditor to satisfy their right from assets owed by a third party to the debtor. Although the garnishee is considered a third party, they occupy a distinct legal position in this type of attachment due to their significant impact on ensuring proper conduct and effectiveness of enforcement procedures. Accordingly, the study examines the legal nature of the attachment of the debtor’s property in the hands of third parties and analyzes the legal liability arising for the garnishee by identifying the legal obligations imposed upon them and the sanctions resulting from a breach thereof. The study adopts an analytical methodology supported by a comparative approach, through analyzing the provisions governing the garnishee under the Saudi Enforcement Law and comparing them with the provisions of the Egyptian Civil and Commercial Procedures Law.

The study concludes with several findings, most notably that the legal nature of the attachment of the debtor’s property in the hands of third parties is of mixed character, as it begins as a precautionary attachment and subsequently transforms into an enforcement attachment after the lapse of a specified period. This approach has been adopted by both the Saudi regulator and the Egyptian legislator. The study also presents a number of recommendations, foremost among them the necessity of expressly stipulating the data that must be included in the garnishee’s declaration of indebtedness, following the model of Egyptian law, in order to ensure the accuracy of the information provided and to reduce the likelihood of collusion between the garnishee and the attached debtor.

The study concludes with several findings, most notably that the legal nature of the attachment of the debtor’s property in the hands of third parties is of mixed character, as it begins as a precautionary attachment and subsequently transforms into an enforcement attachment after the lapse of a specified period. This approach has been adopted by both the Saudi regulator and the Egyptian legislator. The study also presents a number of recommendations, foremost among them the necessity of expressly stipulating the data that must be included in the garnishee’s declaration of indebtedness, following the model of Egyptian law, in order to ensure the accuracy of the information provided and to reduce the likelihood of collusion between the garnishee and the attached debtor.