New York Laws
Article 52 - Enforcement of Money Judgments
5239 - Proceeding to Determine Adverse Claims.

§ 5239. Proceeding to determine adverse claims. Prior to the
application of property or debt by a sheriff or receiver to the
satisfaction of a judgment, any interested person may commence a special
proceeding against the judgment creditor or other person with whom a
dispute exists to determine rights in the property or debt. Service of
process in such a proceeding shall be made by service of a notice of
petition upon the respondent, the sheriff or receiver, and such other
person as the court directs, in the same manner as a notice of motion.
The proceeding may be commenced in the county where the property was
levied upon, or in a court or county specified in subdivision (a) of
section 5221. The court may vacate the execution or order, void the
levy, direct the disposition of the property or debt, or direct that
damages be awarded. Where there appear to be disputed questions of fact,
the court shall order a separate trial, indicating the person who shall
have possession of the property pending a decision and the undertaking,
if any, which such person shall give. If the court determines that any
claim asserted was fraudulent, it may require the claimant to pay to any
party adversely affected thereby the reasonable expenses incurred by
such party in the proceeding, including reasonable attorneys' fees, and
any other damages suffered by reason of the claim. The court may permit
any interested person to intervene in the proceeding.

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