Commerce Bank v. McGowenAnnotate this Case
In this garnishment proceeding, the Supreme Court reversed the judgment of the district court concluding that Robert McGowen's deferred compensation plan benefits paid upon him reaching the age of sixty-seven were not exempt under Iowa Code 627.6(8)(e), holding that the payments made to McGowen fell within the scope of the statutory exemption.
Commerce Bank obtained a judgment against McGowen in the amount of $1.5 million. Commerce Bank then caused to be issued a writ of general execution directing the sheriff to levy on McGowen's employer (the company). McGowen moved to exempt all payments made to him under the company's deferred compensation plan under section 642.15. The district court denied the motion. The Supreme Court reversed, holding that McGowen's deferred compensation payments were exempt under the statute.