N.Y. CPLR § 216

NEW YORK CIVIL PRACTICE LAW AND RULES (CPLR) New York State | For Informational Purposes Only CPLR § 216 Abbreviation of period to one year after notice § 216. Abbreviation of period to one year after notice. (a) Action torecover money. 1. No action for the recovery of any sum of money due andpayable under or on account of a contract, or for any part thereof,shall be commenced by any person who has made claim to the sum, afterthe expiration of one year from the giving of notice, as hereinafterprovided, to the claimant that an action commenced by another person ispending to recover the sum, or any part thereof, exceeding fifty dollarsin amount. This limitation shall not be construed to enlarge the timewithin which the cause of action of the claimant would otherwise bebarred.2. If any person shall make claim for the recovery of any sum of moneydue and payable under or on account of a contract, and an action hastheretofore been, or shall thereafter be, commenced by another person torecover the sum, or any part thereof, exceeding fifty dollars in amount,the defendant in such action may, within twenty days from the date ofservice upon him of the complaint or from the date of receipt by him ofthe claim, whichever occurs later, make a motion before the court inwhich the action is pending for an order permitting the defendant togive notice to the claimant that the action is pending. The court inwhich the action is pending shall grant the order where it appears thata person not a party to the action has made claim against the defendantfor the sum of money, or any part thereof, exceeding fifty dollars inamount; that the action was brought without collusion between thedefendant and the plaintiff; and that the claimant cannot, with duediligence, be served with process in such a manner as to obtainjurisdiction over his person. The order shall provide, among such otherte t and the plaintiff; and that the claimant cannot, with duediligence, be served with process in such a manner as to obtainjurisdiction over his person. The order shall provide, among such otherterms and conditions as justice may require, that notice shall be givento the claimant by sending by registered mail a copy of the summons andcomplaint in the action and the order and a notice addressed to theclaimant at his last known address. In the event that registration ofmail directed to any country or part thereof shall be discontinued orsuspended, notice to a claimant whose last known address is within suchcountry or part thereof shall be given by ordinary mail, under suchterms and conditions as the court may direct. Proof that the notice hasbeen mailed shall be filed within ten days from the date of the order;otherwise the order becomes inoperative. Upon such filing, notice shallbe deemed to have been given on the tenth day after the date of suchorder.3. Upon proof by affidavit or otherwise, to the satisfaction of thecourt, that the conditions of this subdivision have been satisfied andthat there is no collusion between the claimant and the defendant, thecourt shall make an order staying further prosecution of the action fora period not to exceed one year from the date when the notice shall havebeen given to the claimant. At the time of the granting of such order orat any time thereafter, the court, upon the motion of any party, shall,as a condition of the granting of the order or its continuation, imposeupon the defendant such terms as justice may require as to thefurnishing of an undertaking in an amount to be fixed by the court. Thestay shall be vacated and the undertaking, if any has been given, may bedischarged or modified, as justice may require, upon proof to the courtby any party to the action that the claimant has intervened or hasinstituted another action in any court of thi , may bedischarged or modified, as justice may require, upon proof to the courtby any party to the action that the claimant has intervened or hasinstituted another action in any court of this state to recover the saidsum of money, or any part thereof, exceeding fifty dollars.4. A motion for any relief as prescribed in this subdivision shall bemade on notice to all other parties to the action.5. Whenever claims are made by two or more persons, each claiming tobe, to the exclusion of the other, the duly authorized deputy, officeror agent to demand, receive, collect, sue for or recover the same sum ofmoney due and payable under or on account of a contract, or any partthereof, exceeding fifty dollars in amount, for and on behalf of thesame person, each person making such a claim shall be deemed an adverseclaimant. Notwithstanding that an action has been commenced in the nameof or on behalf of the person for whom he claims to be the dulyauthorized deputy, officer or agent, any such adverse claimant may benotified of the pendency of an action as provided in this subdivisionand may intervene in the --- NEW YORK CIVIL PRACTICE LAW AND RULES (CPLR) New York State | For Informational Purposes Only action and be designated as claiming to be oras the alleged deputy, officer or agent.6. Whenever an action has been commenced for the recovery of any sumof money exceeding fifty dollars due and payable under or on account ofa contract and the records of the defendant show that a person otherthan the plaintiff has the right, exclusive of other deputies, officersor agents of the plaintiff, to demand, sue for and recover the same sumof money, or any part thereof, exceeding fifty dollars in amount, eitherin his own name, on his own behalf, or as the authorized deputy, officeror agent for the plaintiff, and the defendant has received no notice oftransfer, revocation, or other change in right o n his own name, on his own behalf, or as the authorized deputy, officeror agent for the plaintiff, and the defendant has received no notice oftransfer, revocation, or other change in right or authority acceptableto it, the person so appearing on the records shall be deemed to havemade an adverse claim to the sum of money and may be treated as anadverse claimant.(b) Action to recover property. When an action has been commenced torecover specific personal property, including certificates of stocks,bonds, notes or other securities or obligations, exceeding fifty dollarsin value, held by the defendant within the state, or to enforce a vestedor contingent interest or lien upon such property, and a person not aparty to the action asserts a claim to the whole or any part of the sameproperty or to a right, interest or lien upon it which is adverse to theplaintiff's claim, and the court in which the action is pending has nojurisdiction over the adverse claimant to direct the issuance of processor if the same be issued it would be without effect notwithstanding thatthe action seeks to have declared, enforced, regulated, defined orlimited, rights, interests or liens upon specific personal propertywithin the state, the defendant in the action may within twenty daysfrom the date of service upon him of the complaint or within twenty daysof the date of the receipt by him of the adverse claim, whichever shalloccur later, make a motion before the court for leave to give notice tothe adverse claimant of the pending action in the same manner asprovided in subdivision (a). Upon the granting of such an order, theprovisions of subdivision (a) shall apply insofar as they are compatiblewith the subject matter of the action. CPLR § 216 Page 2