Senate Bill S4585A

2011-2012 Legislative Session

Relates to the judgment lien on real property in an action upon a money judgment; repealer

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Archive: Last Bill Status - In Senate Committee Judiciary Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

View Actions

Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Feb 17, 2012	print number 4585a
Feb 17, 2012	amend and recommit to judiciary
Jan 04, 2012	referred to judiciary
Jun 24, 2011	committed to rules
May 09, 2011	advanced to third reading
May 04, 2011	2nd report cal.
May 03, 2011	1st report cal.444
Apr 13, 2011	referred to judiciary

Votes

- May 3, 2011 - Judiciary Committee Vote
  S4585A
  
  Aye
  
  16
  
  Nay
  
  5
  
  Aye with Reservations
  
  2
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  
  0
  - - Judiciary Committee Vote: May 3, 2011
      
      aye (16)
      
      Bonacic
      
      Breslin
      
      DeFrancisco
      
      Flanagan
      
      Fuschillo
      
      Gianaris
      
      LaValle
      
      Lanza
      
      Little
      
      Nozzolio
      
      O'Mara
      
      Ranzenhofer
      
      Saland
      
      Serrano
      
      Squadron
      
      Zeldin
      
      nay (5)
      
      Dilan
      
      Espaillat
      
      Hassell-Thompson
      
      Krueger
      
      Perkins
      
      aye wr (2)
      
      Adams
      
      Stavisky

Bill Amendments

2011-S4585 - Details

Current Committee:: Senate Judiciary
Law Section:: Civil Practice Law and Rules
Laws Affected:: Amd §§5014 & 5203, rpld §5235, CPLR

2011-S4585 - Summary

Relates to the judgement lien on real property in an action upon a money judgment.

2011-S4585 - Sponsor Memo

                                BILL NUMBER:S4585

TITLE OF BILL:

An act
to amend the civil practice law and rules, in relation to the judgment
lien on real property in an action upon a money judgment and to repeal
certain provisions of such law relating to levy upon real property

This is one in a series of measures being introduced at the request of
the Chief Administrative Judge upon the recommendation of her
Advisory Committee on Civil Practice.

We propose an extension of the judgment lien on real property in an
action upon a money judgment from 10 years to 20 years. We believe
that the existing statutory 20-year enforceable life of a money
judgment award and the mere 10-year viability of the lien on real
property resulting from the money judgment are completely at odds and
can result in a serious hardship on an original creditor with a valid
judgment in a lien-gap scenario.
The 10-year life of a lien, while created as a matter of public policy
to facilitate property conveyances, is not justified when considered
in the context of the difference between the two statutes.

Our Advisory Committee has followed with great interest the decisions
in the case of Gletzer v. Ranis, 12 N.Y.3d 468 (2009) affg, 51 A.D.3d

196 (1st Dept. 2008). In that case, the Court of Appeals held that a
renewal lien becomes effective when granted by Supreme Court, where
additional lenders relying on the public record acquired rights in
the property during the lien gap that occurred during the pendency of
the original creditor's action, which was brought to renew the
judgment under CPLR §5014 during the tenth year to extend the lien
for an additional 10 years but not decided until after the expiration
of the lien. This measure is intended to resolve the lien-gap problem
and addresses the situation where the lien has expired but the
judgment has not.

We recognize that these amendments necessitate the repeal of CPLR
§5235, since that statute was designed to eliminate the problems of
execution on a judgment that arise during the second 10 years while
the still valid judgment may not be a lien on real property (see,
CPLR §5236(a) (preventing the sale of the realty on execution where
the lien is expired). However, the remedy under §5235, allowing the
sheriff to file the notice of levy, must remain available for 10
years from the effective date of this measure in those situations
where either the judgement has been docketed but the lien obtained on
the judgment has expired prior to the effective date of this measure
or where the judgment creditor issues the execution close to the
expiration of the 20-year lien period to prevent the lien from
expiring while the sale of the real property takes place. Thus, this
measure includes a provision in its effective date section to ensure
that §5235 remains available in those instances to provide the
appropriate notice on the public record.

This measure would have no fiscal impact on the State. It would take
effect on the first of January next succeeding the date on which it


shall have become law; except that section three of the measure would
take effect ten years after such effective date provided that any
execution issued pursuant to section 5235 before such date shall
remain in effect.

2010 Legislative History:

OCA 2010-58

2011-S4585 - Bill Text download pdf

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

                                  4585

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                             April 13, 2011
                               ___________

Introduced  by Sen. BONACIC -- (at request of the Office of Court Admin-
  istration) -- 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 the
  judgment lien on real property in an action upon a money judgment  and
  to  repeal  certain  provisions of such law relating to levy upon real
  property

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

  Section  1.  Section  5014  of  the  civil practice law and rules, the
section heading and the opening paragraph, as amended by chapter 115  of
the laws of 1965, subdivision 2 as amended by chapter 485 of the laws of
1964  and  the  closing paragraph as added by chapter 123 of the laws of
1986, is amended to read as follows:
  S 5014. Action upon judgment. Except as permitted by section 15-102 of
the general obligations law, an action upon a money judgment entered  in
a court of the state may only be maintained between the original parties
to the judgment where:
  1.  [ten years have elapsed since the first docketing of the judgment;
or
  2.] the judgment was entered against the defendant by default for want
of appearance and the summons was served other than by personal delivery
to [him] THE DEFENDANT or to his OR HER  agent  for  service  designated
under rule 318, either within or without the state; or
  [3.]  2.  the  court  in  which  the action is sought to be brought so
orders on motion with such notice to such other persons as the court may
direct.
  [An action may be commenced under  subdivision  one  of  this  section
during  the  year  prior  to the expiration of ten years since the first
docketing of the judgment. The judgment in such action shall  be  desig-
nated a renewal judgment and shall be so docketed by the clerk. The lien

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09314-01-1

S. 4585                             2

of a renewal judgment shall take effect upon the expiration of ten years
from the first docketing of the original judgment.]
  S  2.  Subdivisions  (a) and (b) of section 5203 of the civil practice
law and rules, subdivision (a) as amended by chapter 968 of the laws  of
1972  and subdivision (b) as amended by chapter 388 of the laws of 1964,
are amended to read as follows:
  (a) Priority and lien on docketing judgment. No transfer of an  inter-
est  of  the  judgment debtor in real property, against which property a
money judgment may be enforced, is effective against the judgment credi-
tor either from the time of the docketing of the judgment with the clerk
of the county in which the property is located until [ten] TWENTY  years
after  filing  of the judgment-roll, or from the time of the filing with
such clerk of a notice of  levy  pursuant  to  an  execution  until  the
execution is returned, except:
  1. a transfer or the payment of the proceeds of a judicial sale, which
shall  include  an  execution sale, in satisfaction either of a judgment
previously so docketed or of a judgment where a notice of levy  pursuant
to an execution thereon was previously so filed; or
  2.  a  transfer  in  satisfaction  of  a  mortgage given to secure the
payment of the purchase price of the judgment debtor's interest  in  the
property; or
  3. a transfer to a purchaser for value at a judicial sale, which shall
include an execution sale; or
  4.  when  the  judgment  was  entered  after the death of the judgment
debtor; or
  5. when the judgment debtor is  the  state,  an  officer,  department,
board or commission of the state, or a municipal corporation; or
  6.  when the judgment debtor is the personal representative of a dece-
dent and the judgment was awarded in an action against [him] SUCH  JUDG-
MENT DEBTOR in his OR HER representative capacity.
  (b)  Extension  of  lien.  Upon  motion of the judgment creditor, upon
notice to the judgment debtor, served personally  or  by  registered  or
certified  mail,  return receipt requested, to the last known address of
the judgment debtor, the court may order that the lien of a money  judg-
ment upon real property be effective after the expiration of [ten] TWEN-
TY  years  from  the filing of the judgment-roll, for a period no longer
than the time during which the judgment creditor was stayed from enforc-
ing the judgment, or the time necessary to  complete  advertisement  and
sale  of  real  property in accordance with section 5236, pursuant to an
execution delivered to a sheriff prior to the expiration  of  ten  years
from  the filing of the judgment-roll. The order shall be effective from
the time it is filed with the clerk of the county in which the  property
is located and an appropriate entry is made upon the docket of the judg-
ment.
  S 3. Section 5235 of the civil practice law and rules is REPEALED.
  S  4. This act shall take effect on the first of January next succeed-
ing the date on which it shall have  become  law;  except  that  section
three  of  this act shall take effect 10 years after such effective date
provided that any execution issued pursuant to section 5235 of the civil
practice law and rules  before  such  effective  date  shall  remain  in
effect.

2011-S4585A (ACTIVE) - Details

Current Committee:: Senate Judiciary
Law Section:: Civil Practice Law and Rules
Laws Affected:: Amd §§5014 & 5203, rpld §5235, CPLR

2011-S4585A (ACTIVE) - Summary

Relates to the judgement lien on real property in an action upon a money judgment.

2011-S4585A (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S4585A

TITLE OF BILL:
An act to amend the civil practice law and rules, in relation to the
judgment lien on real property in an action upon a money judgment and to
repeal certain provisions of such law relating to levy upon real proper-
ty

This is one in a series of measures being introduced at the request of
the Chief Administrative Judge upon the recommendation of her Advisory
Committee on Civil Practice.

We propose an extension of the judgment lien on real property in an
action upon a money judgment from 10 years to 20 years. We believe that
the existing statutory 20-year enforceable life of a money judgment
award and the mere 10-year viability of the lien on real property
resulting from the money judgment are completely at odds and can result
in a serious hardship on an original creditor with a valid judgment in a
lien-gap scenario.  The 10-year life of a lien, while created as a
matter of public policy to facilitate property conveyances, is not
justified when considered in the context of the difference between the
two statutes.

Our Advisory Committee has followed with great interest the decisions in
the case of Gletzer v. Harris, 12 N.Y.3d 468 (2009) aff'g, 51 A.D.3d 196
(1st Dept. 2008). In that case, the Court of Appeals held that a renewal

lien becomes effective when granted by Supreme Court, where additional
lenders relying on the public record acquired rights in the property
during the lien gap that occurred during the pendency of the original
creditor's action, which was brought to renew the judgment under CPLR
§50l4 during the tenth year to extend the lien for an additional 10
years but not decided until after the expiration of the lien. This meas-
ure is intended to resolve the lien-gap problem and addresses the situ-
ation where the lien has expired but the judgment has not.

We recognize that these amendments necessitate the repeal of CPLR §5235,
since that statute was designed to eliminate the problems of execution
on a judgment that arise during the second 10 years while the still
valid judgment may not be a lien on real property (see, CPLR §5236(a)
(preventing the sale of the realty on execution where the lien is
expired)). However, the remedy under §5235, allowing the sheriff to file
the notice of levy, must remain available for 10 years from the effec-
tive date of this measure in those situations where either the judgment
has been docketed but the lien obtained on the judgment has expired
prior to the effective date of this measure or where the judgment credi-
tor issues the execution close to the expiration of the 20-year lien
period to prevent the lien from expiring while the sale of the real
property takes place. Thus, this measure includes a provision in its
effective date section to ensure that §5235 remains available in those
instances to provide the appropriate notice on the public record.

This measure would have no fiscal impact on the State. It would take
effect on the first of January next succeeding the date on which it
shall have become law; except that section three of the measure would
take effect ten years after such effective date provided that any
execution issued pursuant to §5235 before such date shall remain in
effect.

2010 LEGISLATIVE HISTORY:
OCA 2020-58

2011-S4585A (ACTIVE) - Bill Text download pdf

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

                                 4585--A

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                             April 13, 2011
                               ___________

Introduced  by Sen. BONACIC -- (at request of the Office of Court Admin-
  istration) -- read twice and ordered printed, and when printed  to  be
  committed  to the Committee on Judiciary -- recommitted to the Commit-
  tee on Judiciary in accordance with Senate Rule 6, sec. 8 -- committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

AN ACT to amend the civil practice law and rules,  in  relation  to  the
  judgment  lien on real property in an action upon a money judgment and
  to repeal certain provisions of such law relating to  levy  upon  real
  property

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

  Section 1. Section 5014 of the  civil  practice  law  and  rules,  the
section  heading and the opening paragraph, as amended by chapter 115 of
the laws of 1965, subdivision 2 as amended by chapter 485 of the laws of
1964 and the closing paragraph as added by chapter 123 of  the  laws  of
1986, is amended to read as follows:
  S 5014. Action upon judgment. Except as permitted by section 15-102 of
the  general obligations law, an action upon a money judgment entered in
a court of the state may only be maintained between the original parties
to the judgment where:
  1. [ten years have elapsed since the first docketing of the  judgment;
or
  2.] the judgment was entered against the defendant by default for want
of appearance and the summons was served other than by personal delivery
to  [him]  THE  DEFENDANT  or to his OR HER agent for service designated
under rule 318, either within or without the state; or
  [3.] 2. the court in which the action  is  sought  to  be  brought  so
orders on motion with such notice to such other persons as the court may
direct.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09314-02-1

S. 4585--A                          2

  [An  action  may  be  commenced  under subdivision one of this section
during the year prior to the expiration of ten  years  since  the  first
docketing  of  the judgment. The judgment in such action shall be desig-
nated a renewal judgment and shall be so docketed by the clerk. The lien
of a renewal judgment shall take effect upon the expiration of ten years
from the first docketing of the original judgment.]
  S  2.  Subdivisions  (a) and (b) of section 5203 of the civil practice
law and rules, subdivision (a) as amended by chapter 968 of the laws  of
1972  and subdivision (b) as amended by chapter 388 of the laws of 1964,
are amended to read as follows:
  (a) Priority and lien on docketing judgment. No transfer of an  inter-
est  of  the  judgment debtor in real property, against which property a
money judgment may be enforced, is effective against the judgment credi-
tor either from the time of the docketing of the judgment with the clerk
of the county in which the property is located until [ten] TWENTY  years
after  filing  of the judgment-roll, or from the time of the filing with
such clerk of a notice of  levy  pursuant  to  an  execution  until  the
execution is returned, except:
  1. a transfer or the payment of the proceeds of a judicial sale, which
shall  include  an  execution sale, in satisfaction either of a judgment
previously so docketed or of a judgment where a notice of levy  pursuant
to an execution thereon was previously so filed; or
  2.  a  transfer  in  satisfaction  of  a  mortgage given to secure the
payment of the purchase price of the judgment debtor's interest  in  the
property; or
  3. a transfer to a purchaser for value at a judicial sale, which shall
include an execution sale; or
  4.  when  the  judgment  was  entered  after the death of the judgment
debtor; or
  5. when the judgment debtor is  the  state,  an  officer,  department,
board or commission of the state, or a municipal corporation; or
  6.  when the judgment debtor is the personal representative of a dece-
dent and the judgment was awarded in an action against [him] SUCH  JUDG-
MENT DEBTOR in his OR HER representative capacity.
  (b)  Extension  of  lien.  Upon  motion of the judgment creditor, upon
notice to the judgment debtor, served personally  or  by  registered  or
certified  mail,  return receipt requested, to the last known address of
the judgment debtor, the court may order that the lien of a money  judg-
ment upon real property be effective after the expiration of [ten] TWEN-
TY  years  from  the filing of the judgment-roll, for a period no longer
than the time during which the judgment creditor was stayed from enforc-
ing the judgment, or the time necessary to  complete  advertisement  and
sale  of  real  property in accordance with section 5236, pursuant to an
execution delivered to a sheriff prior to the expiration of [ten] TWENTY
years from the filing of the judgment-roll. The order shall be effective
from the time it is filed with the clerk of  the  county  in  which  the
property  is located and an appropriate entry is made upon the docket of
the judgment.
  S 3. Section 5235 of the civil practice law and rules is REPEALED.
  S 4. This act shall take effect on the first of January next  succeed-
ing  the  date  on  which  it shall have become law; except that section
three of this act shall take effect 10 years after such  effective  date
provided that any execution issued pursuant to section 5235 of the civil
practice  law  and  rules  before  such  effective  date shall remain in
effect.

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Senate Bill S4585A

Sponsored By

Archive: Last Bill Status - In Senate Committee Judiciary Committee

Actions

Votes

May 3, 2011 - Judiciary Committee Vote

Judiciary Committee Vote: May 3, 2011

Bill Amendments

2011-S4585 - Details

2011-S4585 - Summary

2011-S4585 - Sponsor Memo

2011-S4585 - Bill Text download pdf

2011-S4585A (ACTIVE) - Details

2011-S4585A (ACTIVE) - Summary

2011-S4585A (ACTIVE) - Sponsor Memo

2011-S4585A (ACTIVE) - Bill Text download pdf

Comments

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Sponsored By

John J. Bonacic

Archive: Last Bill Status - In Senate Committee Judiciary Committee

Actions

Votes

Bill Amendments

2011-S4585 - Details

2011-S4585 - Summary

2011-S4585 - Sponsor Memo

2011-S4585 - Bill Text download pdf

2011-S4585A (ACTIVE) - Details

2011-S4585A (ACTIVE) - Summary

2011-S4585A (ACTIVE) - Sponsor Memo

2011-S4585A (ACTIVE) - Bill Text download pdf

Comments