Al-Dohan v. Kouyoumjian

114 Misc. 2d 170, 451 N.Y.S.2d 367, 1982 N.Y. Misc. LEXIS 3451
CourtNew York Supreme Court
DecidedJune 3, 1982
StatusPublished
Cited by3 cases

This text of 114 Misc. 2d 170 (Al-Dohan v. Kouyoumjian) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Al-Dohan v. Kouyoumjian, 114 Misc. 2d 170, 451 N.Y.S.2d 367, 1982 N.Y. Misc. LEXIS 3451 (N.Y. Super. Ct. 1982).

Opinion

OPINION OF THE COURT

Martin Evans, J.

Defendant moves to vacate an attachment on the grounds that plaintiff failed, within 60 days of obtaining the attachment, to complete commencement of the action by the valid service of a summons. This motion requires the court to examine the underlying purpose of a summons within the context of the revised attachment statute.

This proceeding arises out of a long series of Middle Eastern business dealings between plaintiff, a Saudi Arabian subject and resident, and defendant, a Syrian-born Armenian now residing in California. The nature and scope of their relationship is obscure. At issue is ownership of over $9,000,000 of which $6,000,000 had been deposited by plaintiff in an account in defendant’s name at the Republic National Bank of New York. Plaintiff contends that he conveyed the funds to defendant as his agent in trust, on an oral agreement that defendant would invest them for plaintiff. Defendant claims that plaintiff was his agent for trading gold in Saudi Arabia, where non-Moslems are unable to freely engage in commerce; that plaintiff, having held over $9,000,000 of defendant’s money under an oral agreement, in trust for him under plaintiff’s [171]*171name, withheld a substantial portion when transferring the balance at issue to defendant’s New York account. On July 8, 1981 plaintiff, because of the fear that defendant would withdraw the balance upon commencement of litigation, and as a predicate for obtaining New York jurisdiction, successfully applied for an ex parte order of attachment. Upon levy, the bank reported only $27,521.86 remaining on deposit.

CPLR 6213 provides, in pertinent part: “An order of attachment granted before an action is commenced is valid only if, within sixty days after the order is granted, a summons is served upon the defendant or first publication of the summons against the defendant is made pursuant to an order and publication is subsequently completed”. The 60-day statutory period expired on September 6, 1981. No summons was validly served, nor was any order of publication obtained, within that period.

Nevertheless, on July 13, 1981, within the statutory period, plaintiff moved for an order confirming the attachment, pursuant to CPLR 6211 (subd [b]), and served notice of that motion on defendant, along with a copy of the complaint and supporting affidavits by registered mail. There is no question that defendant received actual notice of the attachment and the imminent pendency of the action. Defendant retained counsel, who, on August 20, 1981 demanded a copy of all relevant papers from plaintiff’s attorneys. The next day, plaintiff’s attorneys served defendant’s attorneys with a copy of a summons and complaint together with the other papers upon which the attachment was based.

It is well settled that the failure to serve a summons is a jurisdictional defect, fatal to attachment, which voids it ab initio. (Raphael v Gibson, 65 AD2d 553; Kieley v Central Complete Combustion Mfg. Co., 147 NY 620; 7A Weinstein-Korn-Miller, NY Civ Prac, par 6213.03.) This rule is motivated by common sense and fairness; indeed, it is a requirement of due process. Whether the attachment and levy is intended as a security device or as a jurisdictional predicate, it is both unfair and purposeless to indefinitely encumber the defendant’s property if no action is presently to be commenced.

[172]*172When the State Legislature recodified New York’s attachment statute (CPLR art 62) in 1977, it sought to guarantee the defendant’s due process rights after the grant of an ex parte order by providing for the speedy confirmation hearing procedure mandated by the new CPLR 6211 (subd [b]) where the plaintiff now bears the burden of proof. (See Fifteenth Ann Report of Judicial Conference to the Legislature on the CPLR, Twenty-Second Ann Report of NY Judicial Conference, 1977, p 243; L 1977, ch 860.)

The old law’s failure to give the defendant adequate notice and an opportunity to be heard, and its requirement that the objecting defendant bear the burden of proof rendered it constitutionally defective. (Sugar v Curtis Circulation Co., 383 F Supp 643; see North Ga. Finishing v Di-Chem, Inc., 419 US 601.)

While the notice, hearing and shifted burden of proof aspects of the revised law are necessáry elements of a constitutionally valid attachment procedure, their observance does not alone guarantee conformity with due process. The service of summons requirement of CPLR 3213 independently helps to secure due process and has thus not been rendered surplusage by the 1977 amendments; its continued viability was implicitly recognized by the Legislature’s decision to retain it as an integral part of the attachment procedure. Under the new procedure, a defendant (more accurately, a putative defendant) need no longer fear deprivation of his property without his knowledge, an opportunity to be heard and the right to put the movant to his proof. However, without the requirement that an action be commenced within 60 days, he could still be effectively deprived of his property for an indefinite length of time, without the opportunity to litigate the underlying issues which initially gave rise to the attachment.

CPLR 6213 is more than merely a notice statute, as a summons is more than mere notice. Of course, the primary purpose of a summons is to notify the defendant that an action is pending, fairly apprise him, in general terms, of its object, and tell him when, where and how he should respond. (See, generally, Valz v Sheepshead Bay Bungalow Corp., 249 NY 122, 133.) While the law provides that an [173]*173action be commenced by service of a summons (CPLR 304, 305), no specific form of summons is prescribed; its contents, in whatever form, must be sufficient to give such fair notice. Thus it could be argued that the complaint, order of attachment, and other supporting papers served on defendant by registered mail along with the motion to confirm the attachment, together adequately gave notice so as to be deemed a summons. Certainly defendant’s subsequent actions, including the retention of counsel, indicate that he did receive actual notice.

The law, however, requires more than notice, even actual notice alone, is insufficient. (See Wuchter v Pizzutti, 276 US 13, 24.) Assuming the existence of an adequate jurisdictional basis (here in rem jurisdiction over property deposited in New York and subject to attachment, pursuant to CPLR 314), that notice must be validly served, i.e., given by a method approved by law that is not only reasonably calculated to make the defendant aware of the proceedings even if the notice is never actually received (Dobkin v Chapman 21 NY2d 490), but additionally, one which is recognized as “an act of public power” (Matter of Bonesteel, 16 AD2d 324, 326) which symbolizes the assertion of the court’s authority over the litigants.

The service of the confirmation motion papers on defendant by registered mail was valid as service of such a motion. CPLR 6211 (subd [b]) provides that a motion to confirm an attachment be made “on such notice as the court shall direct”, and the court, in the ex parte order, did direct service by registered mail to the defendant in California. Nevertheless, it was not sufficient to constitute service of a summons.

CPLR 314 provides that:

“Service may be made without the state by any person authorized by section 313 in the same manner as service is made within the state * * *

“2.

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Bluebook (online)
114 Misc. 2d 170, 451 N.Y.S.2d 367, 1982 N.Y. Misc. LEXIS 3451, Counsel Stack Legal Research, https://law.counselstack.com/opinion/al-dohan-v-kouyoumjian-nysupct-1982.