Judge Michael Ciaffa
LR Credit 21 sought to compel JPMorgan Chase Bank to turn over the proceeds of the Burnetts' joint account. LR claimed it obtained a default judgment upon an assigned debt claim. LR served an information subpoena on the bank, and also a restraining notice, with appropriate exemption notice and claim forms. LR alleged a property execution was sent to the sheriff to restrain the account to permit LR to submit this turnover petition. The bank stated it placed a hold for over $9,000 on the account, but its letter noted the balance may be subject to exemption claims. The court noted a creditor seeking a turnover order must plead and prove compliance with CPLR 5222-a, stating the statute unambiguously set forth new statutory procedures for advising a debtor of their right to claim that funds on deposit were exempt from both restraint and execution. As LR's papers neither pleaded nor proved compliance with the statute's requirements, and in the absence of proof the sheriff provided exemption notice and claim forms to the bank with its execution notice, the execution was void. Based on the bank's letter responding to LR's information subpoena, the court had reason to suspect the account may include funds that were exempt from execution and levy and denied the petition.
