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Hotel 71 Mezz Lender LLC v. Falor – Case Brief Summary (New York)

In Hotel 71 Mezz Lender LLC v. Falor, (14 NY3d 303, 312, 926 NE2d 1202, 900 NYS2d 698 [2010]), the Court held that in the case of a prejudgment attachment pursuant to CPLR article 62 on a garnishee-defendant over which the court has personal jurisdiction, the court has jurisdiction over the individual's tangibl e and intangible property, even if the situs of the property is outside New York.

The Court also stated the "black letter principle . . . that where personal jurisdiction is lacking, a New York court cannot attach property not within its jurisdiction" (id at 311.)

Thus, where the court has personal jurisdiction over the garnishee-defendant, a New York court may order attachment of a debtor's assets held by the garnishee-defendant even if the situs of the assets is outside New York.