N.Y. Civil Practice Law & Rules § 6221: Proceedings to determine adverse claims

§ 6221. Proceedings to determine adverse claims. Prior to the

application of property or debt to the satisfaction of a judgment, any

interested person may commence a special proceeding against the

plaintiff to determine the rights of adverse claimants to the property

or debt. Service of process in such a proceeding shall be made by

serving a notice of petition upon the sheriff and upon each party 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 the county where

the order of attachment is filed. The court may vacate or discharge the

attachment, void the levy, direct the disposition of the property or

debt, direct that undertakings be provided or released, 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 the

adverse claim was fraudulent, it may require the claimant to pay the

plaintiff the reasonable expenses incurred in the proceeding, including

reasonable attorney's fees, and any other damages suffered by reason of

the claim. The commencement of the proceeding shall not of itself

subject the adverse claimant to personal jurisdiction with respect to

any matter other than the claim asserted in the proceeding.