SJS Obtains Reversal of Award of Contempt Against Bank for Failure to Restrain Account

January 17, 2006 Syosset, New York

Simmons, Jannace & Stagg prevailed on appeal before the Appellate Division, Second Department, reversing the lower court's judgment of contempt against the firm's client, a national banking association.

Plaintiff served the bank with a restraining notice to enforce a judgment against an individual judgment debtor. The notice was accompanied by a letter from plaintiff's counsel listing information for two corporations. Although the bank had an account in the name of one of the corporations, it did not restrain it. The trial court held the bank in contempt for failing to restrain the corporate account because it was ultimately proven that the individual judgment debtor had an interest in the account. The Appellate Division reversed, holding that plaintiff's failure to include the account information in the restraining notice itself precluded a finding of contempt.

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