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IN THIS ACTION SEEKING TO ENFORCE AFFIDAVITS OF CONFESSION OF JUDGMENT, INFORMATION SUBPOENAS ISSUED BY PLAINTIFFS SHOULD NOT HAVE BEEN QUASHED (SECOND DEPT).

The Second Department, reversing Supreme Court, in an action seeking to enforce affidavits of confession of judgment, determined the motion to quash information subpoenas should not have been granted:

… Supreme Court improvidently exercised its discretion in granting the defendants’ motion to quash the information subpoenas. CPLR 5223 compels disclosure of “all matter relevant to the satisfaction of the judgment.” A judgment creditor is entitled to discovery from either the judgment debtor or a third party in order “to determine whether the judgment debtor[ ] concealed any assets or transferred any assets so as to defraud the judgment creditor or improperly prevented the collection of the underlying judgment” … . …

… [A] party moving to quash a subpoena has the initial burden of establishing either that the requested disclosure “is utterly irrelevant to the action or that the futility of the process to uncover anything legitimate is inevitable or obvious” … . Contrary to the defendants’ contention, the fact that they are seeking to rescind the judgment by confession in a separate action against the plaintiffs, without more, does not preclude enforcement of the judgment in favor of the plaintiffs and against the defendants … . Furthermore, the defendants failed to proffer any evidence that the requested disclosure is utterly irrelevant to the action or that the futility of the process to uncover anything legitimate is inevitable or obvious. Lisogor v Nature’s Delight, Inc., 2020 NY Slip Op 07879, Second Dept 12-23-20

 

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