79 Madison LLC v. Ebrahimzadeh (2022)
Retention note (2026-10-18 review): the 10/17 reading of this opinion was not kept as a stored copy, and nycourts.gov now refuses automated requests, so it was not re-fetched. The summary below has not been re-checked against a retained copy and supports no New York module-12 field marked supported.
Decided: March 24, 2022. Full official opinion independently retrieved 2026-10-17.
Facts and issue
A judgment debtor conceded sole ownership of Corniche LLC, formed in Wyoming or Delaware. His obstructive conduct and the uncertain value of that interest prompted an order directing turnover directly to the creditor, rather than delivery to the sheriff for sale. The appeal also concerned an anti-suit injunction.
Holding and reasoning
The First Department held LLC Law 607 nonexclusive. CPLR 5225 ordinarily directs delivery to the sheriff, but CPLR 5240 permitted direct turnover on this record. The creditor would have to account for a recovery exceeding its judgment. The internal-affairs doctrine did not displace New York judgment-enforcement law in a third-party creditor dispute. The court modified the injunction to identify the particular Kings County proceeding.
Practical impact
A charging order is not the only possible remedy. But this is not a holding establishing a universal foreclosure procedure for an already-charged lien or automatically admitting every auction buyer as a manager. LLC 603, 604 and 607 distinguish economic assignment, member admission and the LLC’s own property.
Historical fit and later treatment
Full later opinions retrieved 2026-10-17:
- National Auditing & Accounting v. Tsirlis, 226 AD3d 515 (2024) applies New York enforcement law to foreign-LLC-interest turnover.
- TBG Funding v. Kenwood Commons, 2026 NY Slip Op 26027 permits turnover on its sole-/multi-member record; nondebtor members did not intervene.
- Finance Holding v. Farzam, 2026 NY Slip Op 31868(U) instead selects a charge where the nondebtor equal member objects. It does not overrule the appellate case or grant a creditor the LLC’s specific property.
The earlier trial discussion in Born To Build v. Saleh, 2014 NY Slip Op 50594(U) must not be used as a current exclusivity rule contrary to the later appellate decision. Current § 607 text was retrieved separately. Comprehensive citator/subsequent-history clearance remains needs_verification.
Applies in →
new-york · equity-interests-stock-llc-charging-orders · businesses-and-going-concerns
Disclaimer. Legal information, not legal advice. This summarizes a decision that later authority may limit or distinguish. Read the full opinion and consult a licensed attorney.