Motorola Credit Corp. v. Standard Chartered Bank, No. 13-2535 (2d Cir. 2014)Annotate this Case
In this appeal, the district court held that the "separate entity rule" precludes a court from ordering a garnishee bank with branches in New York to restrain assets of judgment debtors held in foreign branches of the bank. The court certified the following question to the New York Court of Appeals: "whether the separate entity rule precludes a judgment creditor from ordering a garnishee bank operating branches in New York to restrain a debtor's assets held in foreign branches of the bank." The Court of Appeals answered the question in the affirmative. Consequently, the court held that the district court correctly concluded that the separate entity rule precludes the restraint of assets held in Standard Chartered Bank's foreign branches. Therefore, the court remanded to the district court with instructions to vacate the restraining order on defendants' assets.