N.Y. CPLR § 5239

NEW YORK CIVIL PRACTICE LAW AND RULES (CPLR) New York State | For Informational Purposes Only CPLR § 5239 Proceeding to determine adverse claims § 5239. Proceeding to determine adverse claims. Prior to theapplication of property or debt by a sheriff or receiver to thesatisfaction of a judgment, any interested person may commence a specialproceeding against the judgment creditor or other person with whom adispute exists to determine rights in the property or debt. Service ofprocess in such a proceeding shall be made by service of a notice ofpetition upon the respondent, the sheriff or receiver, and such otherperson as the court directs, in the same manner as a notice of motion.The proceeding may be commenced in the county where the property waslevied upon, or in a court or county specified in subdivision (a) ofsection 5221. The court may vacate the execution or order, void thelevy, direct the disposition of the property or debt, or direct thatdamages be awarded. Where there appear to be disputed questions of fact,the court shall order a separate trial, indicating the person who shallhave possession of the property pending a decision and the undertaking,if any, which such person shall give. If the court determines that anyclaim asserted was fraudulent, it may require the claimant to pay to anyparty adversely affected thereby the reasonable expenses incurred bysuch party in the proceeding, including reasonable attorneys' fees, andany other damages suffered by reason of the claim. The court may permitany interested person to intervene in the proceeding.