In a decision that has import to community associations attempting to collect delinquent assessments, the Appellate Division has allowed a New Jersey creditor to levy on funds held by an out of state bank.
In an unreported decision, the Appellate Division of the Superior Court of New Jersey overturned a trial court ruling denying plaintiff’s application for a turnover of levied funds. The trial court had originally denied the turnover because defendant was located in Pennsylvania and only utilized a bank branch located in Pennsylvania (even though the bank had significant presence in New Jersey). The Appellate Division found that the New Jersey Special Civil Part had both personal and subject matter jurisdiction so as to order the bank to turn over the levied funds. Even though the Pennsylvania branch of the bank responded to the levy, the court recognized that the bank has branches in New Jersey and clearly performs business in the state so as to avail itself to the court’s jurisdiction.
The court’s full decision in Triffin v. Community Preschool & Nursery, LLC, decided December 6, 2011, can be found here.
If you have a question about collections or any other issue concerning your community association, please contact one of our Community Associations attorneys.