N.Y. CVP Law § 5239

§ 5239. Proceeding to determine adverse claims. Prior to the\napplication of property or debt by a sheriff or receiver to the\nsatisfaction of a judgment, any interested person may commence a special\nproceeding against the judgment creditor or other person with whom a\ndispute exists to determine rights in the property or debt. Service of\nprocess in such a proceeding shall be made by service of a notice of\npetition upon the respondent, the sheriff or receiver, and such other\nperson as the court directs, in the same manner as a notice of motion.\nThe proceeding may be commenced in the county where the property was\nlevied upon, or in a court or county specified in subdivision (a) of\nsection 5221. The court may vacate the execution or order, void the\nlevy, direct the disposition of the property or debt, or direct that\ndamages be awarded. Where there appear to be disputed questions of fact,\nthe court shall order a separate trial, indicating the person who shall\nhave possession of the property pending a decision and the undertaking,\nif any, which such person shall give. If the court determines that any\nclaim asserted was fraudulent, it may require the claimant to pay to any\nparty adversely affected thereby the reasonable expenses incurred by\nsuch party in the proceeding, including reasonable attorneys' fees, and\nany other damages suffered by reason of the claim. The court may permit\nany interested person to intervene in the proceeding.\n