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  1. #1

    Default Will a Bank Notify an Account Holder About a Subpoena

    My question involves collection proceedings in the State of: NY (NYC)

    I've been thinking about money judgment enforcement strategies and hoping someone can help me with this question.

    Let's say I send an Information Subpoena or Subpoena Duces Tecum to judgment debtors bank without a restraining notice.

    Will the bank notify the debtor of either enforcement tool?

    I dont want to tip off the debtor.

    Thank you.

  2. #2
    Join Date
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    Default Re: Information Subpoenas/Duces Tecum

    What does "without a restraining notice" mean?

  3. #3

    Default Re: Information Subpoenas/Duces Tecum

    Are banks required to notify its clients that it received an information subpoena (without restraining notice)? If not required, is it customary for them to do so?

    We can send an information subpoena by itself or information subpoena with restraining notice. A restraining notice will freeze the funds in the account and definately requires notice to judgment debtor. I'm wondering if info subpoena by itself will trigger a similar notification. If not, then judgment debtor will not be tipped off and element of surprise can be mantained.

  4. #4
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    Default Re: Information Subpoenas/Duces Tecum

    Quote Quoting AlwaysOnTime
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    A restraining notice will freeze the funds in the account and definately requires notice to judgment debtor.
    Then you would get the money.

    Seems foolish to me not to just levy the account and get the money.

  5. #5
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    Default Re: Information Subpoenas/Duces Tecum

    Quote Quoting AlwaysOnTime
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    Not at all. It's a very legitimate question. Are banks required to notify its clients that it received an information subpoena (without restraining notice)? If not required, is it customary for them to do so?
    Well...these are different questions than you previously asked. Typically, the party serving the subpoena is obligated to serve a notice re same on the person whose information is sought. What is or isn't "customary" for banks in New York is something only someone familiar with banking practices in that state could answer.

  6. #6

    Default Re: Information Subpoenas/Duces Tecum

    Rather not levy without knowing how much is in the account because if the debtor has less than the statutory minimum, I'm not getting a penny but the debtor would be tipped off by the freeze. And I could get a lot of info from the bank with an information subpoena, including debtors assets and address information. Also, information subpoena is cheaper than restraining funds (process server required) and then executing (marshal or sheriff) on the funds. An information subpoena can simply be faxed, mailed or dropped off at the bank although I tend to send then certified mail/return receipt requested.

    I dont know of any NYC requirement for creditor to notify debtor when an information subpoena is issued to a 3rd party.

    Please allow me to add that, in NYC, duces tecums are required to be served by process server but the question stands: is a bank in NYC required to notify the debtor that it received such a request? I dont think so, but want to make sure.

  7. #7
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    Default Re: Information Subpoenas/Duces Tecum

    The debtor is going to be "tipped off" when you sue them and get a judgment.

  8. #8
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    Default Re: Information Subpoenas/Duces Tecum

    Quote Quoting AlwaysOnTime
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    My question involves collection proceedings in the State of: NY (NYC)

    I've been thinking about money judgment enforcement strategies and hoping someone can help me with this question.

    Let's say I send an Information Subpoena or Subpoena Duces Tecum to judgment debtors bank without a restraining notice.

    Will the bank notify the debtor of either enforcement tool?
    You can pretty well bet that the bank will do that and indeed it is likely that the applicable law requires that either you send the debtor notice or that the bank must do that in order to allow the debtor the chance to seek to quash the subpoena if the subpoena is improper. When I was an officer for the IRS and issued summons to banks they always notified the account holder of the summons. Of course I also provided a copy of the summons to the taxpayer as well, as the law required it. There was just no way that the account holder wasn't going to find out about that in a civil proceeding. The banks did that with all legal process they got on account holders unless a law or court order prevented them from doing so, which normally you see only in criminal cases.

  9. #9
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    Default Re: Information Subpoenas/Duces Tecum

    Quote Quoting PayrolGuy
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    The debtor is going to be "tipped off" when you sue them and get a judgment.
    OP's question implies that there already is a judgment.

    But, you are right, the debtor has already been "tipped off" and has likely cleaned out his bank accounts and has arranged his finances to avoid banks.

    Quote Quoting AlwaysOnTime
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    I dont know of any NYC requirement for creditor to notify debtor when an information subpoena is issued to a 3rd party.
    Really?

    Then you'd better study up before you do something that can get you penalized by the court.

    New York Civil Practice Law & Rules
    2303. Service of subpoena; payment of fees in advance. (a) A
    subpoena requiring attendance or a subpoena duces tecum shall be served
    in the same manner as a summons, except that where service of such a
    subpoena is made pursuant to subdivision two or four of section three
    hundred eight of this chapter, the filing of proof of service shall not
    be required and service shall be deemed complete upon the later of the
    delivering or mailing of the subpoena, if made pursuant to subdivision
    two of section three hundred eight of this chapter, or upon the later of
    the affixing or mailing of the subpoena, if made pursuant to subdivision
    four of section three hundred eight of this chapter. Any person
    subpoenaed shall be paid or tendered in advance authorized traveling
    expenses and one day's witness fee. A copy of any subpoena duces tecum
    served in a pending civil judicial proceeding shall also be served, in
    the manner set forth in rule twenty-one hundred three of this chapter,
    on each party who has appeared in the civil judicial proceeding so that
    it is received by such parties promptly after service on the witness and
    before the production of books, papers or other things.
    (Emphasis mine.)

  10. #10

    Default Re: Information Subpoenas/Duces Tecum

    Yes, we already have the money judgment. This is a question related to post judgment enforcement.

    Right, a copy of the subpoena needs to be served upon the judgment debtor when it relates to debtors examination or duces tecum. I get that. I said that I know of no such requirement in NYC when it's just a mere information subpoena (Q&A, no restraint).

    Ok, well, thanks to all for your input.

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