2020 New York Laws
CVP - Civil Practice Law and Rules
Article 2 - Limitations of Time
216 - Abbreviation of Period to One Year After Notice.

§  216. Abbreviation of period to one year after notice. (a) Action to
recover money. 1. No action for the recovery of any sum of money due and
payable under or on account of a contract,  or  for  any  part  thereof,
shall  be  commenced  by any person who has made claim to the sum, after
the expiration of one year from the giving  of  notice,  as  hereinafter
provided,  to the claimant that an action commenced by another person is
pending to recover the sum, or any part thereof, exceeding fifty dollars
in amount. This limitation shall not be construed to  enlarge  the  time
within  which  the  cause  of  action of the claimant would otherwise be
barred.
  2. If any person shall make claim for the recovery of any sum of money
due and payable under or on account of a contract,  and  an  action  has
theretofore been, or shall thereafter be, commenced by another person to
recover the sum, or any part thereof, exceeding fifty dollars in amount,
the  defendant  in  such action may, within twenty days from the date of
service upon him of the complaint or from the date of receipt by him  of
the  claim,  whichever  occurs  later, make a motion before the court in
which the action is pending for an order  permitting  the  defendant  to
give  notice  to  the claimant that the action is pending.  The court in
which the action is pending shall grant the order where it appears  that
a  person not a party to the action has made claim against the defendant
for the sum of money, or any part thereof, exceeding  fifty  dollars  in
amount;  that  the  action  was  brought  without  collusion between the
defendant and the plaintiff; and that  the  claimant  cannot,  with  due
diligence,  be  served  with  process  in  such  a  manner  as to obtain
jurisdiction over his person. The order shall provide, among such  other
terms  and conditions as justice may require, that notice shall be given
to the claimant by sending by registered mail a copy of the summons  and
complaint  in  the  action  and  the order and a notice addressed to the
claimant at his last known address. In the event  that  registration  of
mail  directed  to  any country or part thereof shall be discontinued or
suspended, notice to a claimant whose last known address is within  such
country  or  part  thereof  shall  be given by ordinary mail, under such
terms and conditions as the court may direct. Proof that the notice  has
been  mailed  shall be filed within ten days from the date of the order;
otherwise the order becomes inoperative. Upon such filing, notice  shall
be  deemed  to  have  been given on the tenth day after the date of such
order.
  3. Upon proof by affidavit or otherwise, to the  satisfaction  of  the
court,  that  the conditions of this subdivision have been satisfied and
that there is no collusion between the claimant and the  defendant,  the
court  shall make an order staying further prosecution of the action for
a period not to exceed one year from the date when the notice shall have
been given to the claimant. At the time of the granting of such order or
at any time thereafter, the court, upon the motion of any party,  shall,
as  a condition of the granting of the order or its continuation, impose
upon the  defendant  such  terms  as  justice  may  require  as  to  the
furnishing  of an undertaking in an amount to be fixed by the court. The
stay shall be vacated and the undertaking, if any has been given, may be
discharged or modified, as justice may require, upon proof to the  court
by  any  party  to  the  action  that the claimant has intervened or has
instituted another action in any court of this state to recover the said
sum of money, or any part thereof, exceeding fifty dollars.
  4. A motion for any relief as prescribed in this subdivision shall  be
made on notice to all other parties to the action.
  5.  Whenever  claims are made by two or more persons, each claiming to
be, to the exclusion of the other, the duly authorized  deputy,  officer
or agent to demand, receive, collect, sue for or recover the same sum of

money  due  and  payable  under or on account of a contract, or any part
thereof, exceeding fifty dollars in amount, for and  on  behalf  of  the
same  person, each person making such a claim shall be deemed an adverse
claimant.  Notwithstanding that an action has been commenced in the name
of or on behalf of the  person  for  whom  he  claims  to  be  the  duly
authorized  deputy,  officer  or agent, any such adverse claimant may be
notified of the pendency of an action as provided  in  this  subdivision
and  may  intervene in the action and be designated as claiming to be or
as the alleged deputy, officer or agent.
  6. Whenever an action has been commenced for the recovery of  any  sum
of  money exceeding fifty dollars due and payable under or on account of
a contract and the records of the defendant show  that  a  person  other
than  the plaintiff has the right, exclusive of other deputies, officers
or agents of the plaintiff, to demand, sue for and recover the same  sum
of money, or any part thereof, exceeding fifty dollars in amount, either
in his own name, on his own behalf, or as the authorized deputy, officer
or  agent for the plaintiff, and the defendant has received no notice of
transfer, revocation, or other change in right or  authority  acceptable
to  it,  the  person so appearing on the records shall be deemed to have
made an adverse claim to the sum of money  and  may  be  treated  as  an
adverse claimant.
  (b)  Action  to recover property. When an action has been commenced to
recover specific personal property, including  certificates  of  stocks,
bonds, notes or other securities or obligations, exceeding fifty dollars
in value, held by the defendant within the state, or to enforce a vested
or  contingent  interest  or lien upon such property, and a person not a
party to the action asserts a claim to the whole or any part of the same
property or to a right, interest or lien upon it which is adverse to the
plaintiff's claim, and the court in which the action is pending  has  no
jurisdiction over the adverse claimant to direct the issuance of process
or if the same be issued it would be without effect notwithstanding that
the  action  seeks  to  have  declared,  enforced, regulated, defined or
limited, rights, interests or  liens  upon  specific  personal  property
within  the  state,  the  defendant in the action may within twenty days
from the date of service upon him of the complaint or within twenty days
of the date of the receipt by him of the adverse claim, whichever  shall
occur  later, make a motion before the court for leave to give notice to
the adverse claimant of  the  pending  action  in  the  same  manner  as
provided  in  subdivision  (a).  Upon the granting of such an order, the
provisions of subdivision (a) shall apply insofar as they are compatible
with the subject matter of the action.