660 N.Y.S.2d 430 | N.Y. App. Div. | 1997
Order, Supreme Court, New York County (Emily Jane Goodman, J.), entered December 4, 1996, which, in an interpleader action involving the assignability of a lottery prize, inter alia, granted defendant-respondent’s motion for summary judgment on its cross claim against defendant-appellant, bringing up for review a prior order of the same court and Justice, entered on or about March 15, 1996, inter alia, denying defendant-respondent’s motion to serve an amended answer, unanimously modified, on the law and the facts, to permit defendant-appellant’s service of an amended answer asserting Tax Law § 1613 (a) and 21 NYCRR 2803.11 as a defense to the security agreement under which respondent claims a right to $170,000 of appellant’s $285,715 annual installment on a $6 million lottery prize, to vacate the second decretal paragraph directing appellant to pay respondent $170,000 a year until appellant’s $2,419,046.55 debt to respondent is paid, and, upon a search of the record, to dismiss such of respondent’s cross claims against appellant and counterclaims against plaintiff stakeholder as are based on a security interest in the proceeds of appellant’s lottery prize, and otherwise affirmed, without costs. Judgment, same court and Justice, entered December 17, 1996, in favor of defendant-respondent and against defendant-appellant in the principal amount of $2,419,046.55, plus interest and costs, unanimously affirmed, without costs.
We agree with Supreme Court that appellant failed to raise
While the proscription against assignment renders the pledged collateral defective, it does not operate to impair the validity of the note, which may be enforced against appellant’s assets. Lottery proceeds are an obligation of the State subject to attachment (CPLR 6202) and are not “exempt from application to the satisfaction of the judgment” (CPLR 5201 [a]). An order of attachment is “an appropriate judicial order” within the meaning of Tax Law § 1613 (a) and may be enforced against payments due or to become due. We have considered appellant’s remaining arguments and find them to be without merit. Concur—Rosenberger, J. P., Nardelli, Rubin, Williams and Mazzarelli, JJ.