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New York Court of Appeals Rules on Attachment and Execution of Intangible Assets

March 15, 2010

By James E. Berger and Charlene C. Sun

Introduction

On February 16, 2010, New Yorks highest court held that an out-of-state judgment debtors ownership or membership interests in business entities formed outside the state of New York are considered property subject to pre-judgment attachment under N.Y. C.P.L.R. (CPLR) Article 62, even where the judgment debtors interests are not evidenced by a certificate or other written instrument. This decision further clarifies the law of enforcement in New York and constitutes an expansion of judgment creditors ability to attach a judgment debtors property in satisfaction of a judgment in New York, a major financial center and key enforcement venue.