N.Y. Tax Law § 3036 — Civil actions by persons other than taxpayers

§ 3036. Civil actions by persons other than taxpayers. (a) Actions\npermitted. (1) Wrongful levy. If a levy has been made on property or\nproperty has been sold pursuant to a levy, any person (other than the\nperson against whom is assessed the tax out of which such levy arose)\nwho claims an interest in or lien on such property and that such\nproperty was wrongfully levied upon may bring a civil action against the\nstate of New York in the court of claims. Such action may be brought\nwithout regard to whether such property has been surrendered to or sold\nby the commissioner.\n (2) Surplus proceeds. If property has been sold pursuant to a levy,\nany person (other than the person against whom is assessed the tax out\nof which the levy arose) who claims an interest in or lien on such\nproperty junior to that of the state of New York and to be legally\nentitled to the surplus of the proceeds of such sale may bring a civil\naction against the state of New York in the court of claims.\n (b) Adjudication. The court shall have jurisdiction to grant only\nsuch of the following forms of relief as may be appropriate in the\ncircumstances:\n (1) Injunction. If a levy or sale would irreparably injure rights in\nproperty which the court determines to be superior to rights of this\nstate in property, the court may grant an injunction to prohibit the\nenforcement of such levy or to prohibit such sale.\n (2) Recovery of property. If the court determines that such property\nhas been wrongfully levied upon, the court may:\n (A) order the return of specific property if this state is in\npossession of such property;\n (B) grant a judgment for the amount of money levied upon; or\n (C) if such property was sold, grant a judgment for an amount equal\nto the actual direct and consequential damages proven.\n (3) Surplus proceeds. If the court determines that the interest or\nlien of any party to an action under this section was transferred to the\nproceeds of a sale of such property, the court may grant a judgment in\nan amount equal to all or any part of the amount of the surplus proceeds\nof such sale.\n (c) Validity of assessment. For purposes of an adjudication under\nthis section, the assessment of tax upon which the interest or lien of\nthe department is based shall be conclusively presumed to be valid.\n (d) Limitation on rights of action. No action may be maintained\nagainst any sheriff acting on behalf of the commissioner or any officer\nor employee of the department (or former sheriff, officer or employee)\nor his personal representative with respect to any acts for which an\naction could be maintained under this section.\n (e) Substitution of the state as party. If an action, which could be\nbrought against the state under this section, is improperly brought\nagainst any sheriff acting on behalf of the commissioner or any officer\nor employee of the department (or former sheriff, officer or employee)\nor his personal representative, the court shall order, upon such terms\nas are just, that the pleadings be amended to substitute the state as a\nparty for such sheriff, officer or employee as of the time such action\nwas commenced upon proper service of process on the state.\n