New York Laws
Part 3 - Proceedings by Taxpayers
3036 - Civil Actions by Persons Other Than Taxpayers.

(2) Surplus proceeds. If property has been sold pursuant to a levy,
any person (other than the person against whom is assessed the tax out
of which the levy arose) who claims an interest in or lien on such
property junior to that of the state of New York and to be legally
entitled to the surplus of the proceeds of such sale may bring a civil
action against the state of New York in the court of claims.
(b) Adjudication. The court shall have jurisdiction to grant only
such of the following forms of relief as may be appropriate in the
circumstances:
(1) Injunction. If a levy or sale would irreparably injure rights in
property which the court determines to be superior to rights of this
state in property, the court may grant an injunction to prohibit the
enforcement of such levy or to prohibit such sale.
(2) Recovery of property. If the court determines that such property
has been wrongfully levied upon, the court may:
(A) order the return of specific property if this state is in
possession of such property;
(B) grant a judgment for the amount of money levied upon; or
(C) if such property was sold, grant a judgment for an amount equal
to the actual direct and consequential damages proven.
(3) Surplus proceeds. If the court determines that the interest or
lien of any party to an action under this section was transferred to the
proceeds of a sale of such property, the court may grant a judgment in
an amount equal to all or any part of the amount of the surplus proceeds
of such sale.
(c) Validity of assessment. For purposes of an adjudication under
this section, the assessment of tax upon which the interest or lien of
the department is based shall be conclusively presumed to be valid.
(d) Limitation on rights of action. No action may be maintained
against any sheriff acting on behalf of the commissioner or any officer
or employee of the department (or former sheriff, officer or employee)
or his personal representative with respect to any acts for which an
action could be maintained under this section.
(e) Substitution of the state as party. If an action, which could be
brought against the state under this section, is improperly brought
against any sheriff acting on behalf of the commissioner or any officer
or employee of the department (or former sheriff, officer or employee)
or his personal representative, the court shall order, upon such terms
as are just, that the pleadings be amended to substitute the state as a
party for such sheriff, officer or employee as of the time such action
was commenced upon proper service of process on the state.

Structure New York Laws