The attachment of property is a strong weapon when used properly in New York. A businessman who is having financial problems decides not to pay for goods that he purchased. If your company is the creditor, it could take years before he will have to pay. At that time, the funds could be depleted. One key provisional remedy that a creditor can seek is to obtain an attachment. Here, the creditor can obtain an attachment on the bank account and the businessman would not be able to use the money. Even though the plaintiff is not able to use or obtain the funds, the businessman will not have the luxury of time and would be more motivated to settle.
Attachment of property can have devastating effects on the businessman. Attachments can be ordered by the court ex parte, meaning that the businessman will have no notice. This could cause checks to bounce and drastically alter the ability for a small company to conduct business.
In order to obtain an order of attachment, the creditor would have to show, as per CPLR 6201(a): 1. that \“there is a cause of action\” and that the plaintiff will probably succeed on the merits; 2. that at least one of the grounds of attachment found in the law exists; and 3. that the amont asked for in the lawsuit exceeds any counterclaims that the creditor has knowledge of.
If an order is granted, it is directed to the sherriff, not the defendant. Some orders are granted without notice to the businessman.
If you have a question about provisional remedies such as attachment of property in New York, act now and contact the Law Office of Frederic R. Abramson at 212–233-0666. Feel free to keep up to date on all New York Business Law issues by visiting my blog.