On Feb. 18, 2014, the New York Court of Appeals accepted certification of two legal questions from the U.S. Court of Appeals for the Second Circuit relating to the “separate entity rule.” That rule, as enunciated by intermediate New York courts for over 50 years, provides that in proceedings to enforce judgments in New York, New York branches of banks shall be considered separate entities from all foreign branches of the banks. Its application has prevented judgment creditors from forcing banks, through their New York branches, to restrain and/or turn over assets of a judgment debtor held by foreign branches of banks. That may now change. Given the presence in New York of numerous banks with foreign branches, the decision by the Court of Appeals will be one of the most important rulings in New York, if not the country, in the area of post-judgment enforcement.
The specific questions before the Court of Appeals are:
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
