Article 27. Disposition of Property in Litigation

NY CPLR § 2701. WHEN COURT MAY ORDER DISPOSITION OF PROPERTY

The court, upon motion or on its own initiative, with such notice as it deems proper, may order personal property capable of delivery which is the subject of the action, paid into court, or delivered to such person as it may direct, with such security as the court shall direct, and subject to its further direction if:

  1. a party has such property in his possession, custody or control as trustee for another party or where it belongs or is due to another party;  or
  2. a party has such property in his possession, custody or control and it belongs or is due to another party, where special circumstances make it desirable that payment or delivery to such other party should be withheld;  or
  3. the ownership of such property will depend on the outcome of a pending action and no party is willing to accept possession or custody of it during the pendency of the action.

NY CPLR § 2702. SALE OF PROPERTY

On motion of any party, the court may order the sale, in such manner and on such terms as it deems proper, of any personal property capable of delivery which is the subject of the action if it shall appear likely that its value will be substantially decreased during the pendency of the action.  Any party to the action may purchase such property at a judicially-directed sale held pursuant to this section without prejudice to his claim.

NY CPLR § 2703. ENFORCEMENT OF ORDER DIRECTING DISPOSITION OF PROPERTY

Where the court has directed disposition of personal property capable of delivery and the direction is disobeyed, the court by order, in addition to punishing the disobedience as a contempt, may require the sheriff to take and dispose of the property in accordance with its direction.

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