Court Grants Order Of Disclosure Against Non-Party Financial Institutions Holding Garnished Accounts

On August 30, 2024, Justice Margaret A. Chan granted plaintiffs’ motion for an order of disclosure against Goldman Sachs, UBS Financial Services, and Santander Bank, requiring them to produce documents relating to a defendant’s transaction history in accounts maintained with those institutions. In Ativos Especiais II, et al., v. Kenneth Steven Pope, Index No. 655972/2023, the plaintiffs sought disclosure concerning certain garnished accounts of the defendant. The Court concluded that the plaintiffs were entitled to that information. It explained:

The Garnishee Banks' and Other Garnishees' responses were due February 15, 2024 . . . . However, only UBS and the Goldman Entities responded . . . . Those entities consented to producing "monthly account statements from [defendant]'s [accounts] for the period of July 2021 through December 2023," but objected to plaintiffs' second request for all communications and other correspondence . . . . Meanwhile, defendant agreed in a separate stipulation not to oppose the order for disclosure . . . . In reply, plaintiffs agreed to limit the requests against UBS and the Goldman Entities to just the monthly account statements, but "reserve their rights to seek additional information from UBS and Goldman Sachs including, if necessary, through further motion practice” . . . . Plaintiffs also argue[] that the remaining Garnishee Bank (Santander Bank, N.A.) and the Other Garnishees have not responded and therefore do not oppose the motion, and so discovery should be granted against them in full (id). Plaintiffs are correct. Therefore, plaintiffs may obtain disclosure against the requested financial institutions. as limited in plaintiffs' reply.

The attorneys at Schlam Stone & Dolan frequently counsel clients concerning post-judgment subpoenas and orders of disclosure. Contact the Commercial Division Blog Committee at commercialdivisionblog@schlamstone.com if you or a client have questions concerning such issues.