senate Bill S3133

Increases penalties for failure to execute and file satisfied judgments of $5,000 or more with proper clerk

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Sponsor

Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 30 / Jan / 2013
    • REFERRED TO JUDICIARY
  • 08 / Jan / 2014
    • REFERRED TO JUDICIARY

Summary

Increases penalties for failure to execute and file satisfied judgments of $5,000 or more with court clerk from $100 to $500.

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Bill Details

See Assembly Version of this Bill:
A3416
Versions:
S3133
Legislative Cycle:
2013-2014
Current Committee:
Senate Judiciary
Law Section:
Civil Practice Law and Rules
Laws Affected:
Amd ยง5020, CPLR
Versions Introduced in Previous Legislative Cycles:
2011-2012: S438B, A1889B
2009-2010: S5219, A7922

Sponsor Memo

BILL NUMBER:S3133

TITLE OF BILL: An act to amend the civil practice law and rules, in
relation to increasing penalties for failure to execute and file satis-
fied judgments of $5,000 or more with the court clerk

PURPOSE OR GENERAL IDEA OF BILL: This bill would increase the statutory
damages (from $100 to $500) on creditors who do not execute and file
satisfied judgments with the court clerk for judgments in excess of
$5,000. The goal is to encourage individuals to file so that it will be
less likely that someone will have false strikes on their credit report.

SUMMARY OF SPECIFIC PROVISIONS:

Section one amends subdivision (e) of section 5020 of the civil practice
law and rules to raise the fine for failing to execute and file a satis-
fied judgment with the proper clerk from one hundred to one thousand
dollars.

Section two sets out the effective date.

JUSTIFICATION: This bill amends Civil Practice Law and Rules and
affects every civil judgment. Under current law, an individual who
receives a satisfied judgment from the court must file a satisfaction of
judgment. Most entities such as credit card companies do this as a
matter of standard business practice because such satisfactions (or lack
thereof) are picked up by credit bureaus. If the entity does not file a
satisfaction (even if they got one) and the credit bureau picks it up,
then the credit rating of the individual involved in the dispute is
affected.

At issue now is the fact that judgments in housing court and elsewhere
are starting to be picked up by credit rating agencies, However, many
landlords often fail to file a satisfaction of judgment and so judgments
can end up on a tenant's credit report as unpaid, even if that is not
true. This bad credit rating disproportionately affects low-income citi-
zens because it means that they must pay more for things such as credit
cards, car loans and mortgages.

This legislation will most likely affect housing disputes since most
other businesses automatically file a satisfaction of judgment. The goal
is to increase fines and therefore give landlords and other entities a
greater incentive to remember to file satisfactions of judgment. This
will result in a decrease in the number of individuals whose credit
ratings are affected by a claimant's failure to file a satisfaction of
judgment.

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE: This act shall take effect on the one hundred eightieth
day after it shall have become a law.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  3133

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 30, 2013
                               ___________

Introduced  by  Sen. KRUEGER -- read twice and ordered printed, and when
  printed to be committed to the Committee on Judiciary

AN ACT to amend the  civil  practice  law  and  rules,  in  relation  to
  increasing  penalties  for failure to execute and file satisfied judg-
  ments of $5,000 or more with the court clerk

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Subdivision (c) of section 5020 of the civil practice law
and rules, as amended by chapter 575 of the laws of 1975, is amended  to
read as follows:
  (c) When [the] A judgment FOR LESS THAN FIVE THOUSAND DOLLARS is fully
satisfied,  if  the  person required to execute and file with the proper
clerk pursuant to subdivisions (a) and  (d)  [hereof]  OF  THIS  SECTION
fails or refuses to do so within twenty days after receiving full satis-
faction, then the judgment creditor shall be subject to a penalty of one
hundred  dollars recoverable by the judgment debtor pursuant to [Section
7202 of the civil practice law and rules]  SECTION  SEVENTY-TWO  HUNDRED
TWO  OF  THIS  CHAPTER  or  article eighteen of either the New York City
civil court act, uniform district court act or uniform city  court  act.
WHEN A JUDGMENT FOR FIVE THOUSAND DOLLARS OR MORE IS FULLY SATISFIED, IF
THE  PERSON  REQUIRED TO EXECUTE AND FILE WITH THE PROPER CLERK PURSUANT
TO SUBDIVISIONS (A) AND (D) OF THIS SECTION FAILS OR REFUSES  TO  DO  SO
WITHIN  TWENTY DAYS AFTER RECEIVING FULL SATISFACTION, THEN THE JUDGMENT
CREDITOR SHALL BE SUBJECT TO A PENALTY OF FIVE HUNDRED DOLLARS RECOVERA-
BLE BY THE JUDGMENT DEBTOR PURSUANT TO SECTION SEVENTY-TWO  HUNDRED  TWO
OF  THIS  CHAPTER  OR ARTICLE EIGHTEEN OF EITHER THE NEW YORK CITY CIVIL
COURT ACT, UNIFORM  DISTRICT  COURT  ACT  OR  UNIFORM  CITY  COURT  ACT;
provided,  however, that such [penalty] PENALTIES shall not be recovera-
ble when a city with a population greater than one  million  persons  is
the  judgment  creditor,  unless  such  judgment  creditor shall fail to
execute and file a satisfaction-piece with the proper clerk pursuant  to

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00915-02-3

S. 3133                             2

subdivisions  (a)  and  (d)  [hereof] OF THIS SECTION within twenty days
after having been served by the judgment debtor with  a  written  demand
therefor by certified mail, return receipt requested.
  S 2. This act shall take effect on the one hundred twentieth day after
it shall have become a law.

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