245 Park Member LLC v. HNA Group Company Limited
- John Koeltl
- 1:22-cv-05136
- U.S. District Court · Southern District of New York
- 4
In 245 Park Member LLC v. HNA Group, Judge Koeltl granted an attachment securing $185,412,763.60 in HNA Group’s property.
245 Park Member LLC obtained a prejudgment attachment securing up to $185,412,763.60 in property and debts of HNA Group (International) Company Limited; HNA Group and persons with notice were restricted from transferring or otherwise affecting that property.
What happened
In 245 Park Member LLC v. HNA Group (International) Company Limited, 245 Park Member LLC asked the court to secure property while it sought confirmation of a final arbitration award. The award arose from HNA Group’s alleged failure to pay under an absolute, unconditional, and irrevocable guaranty.
The court found that 245 Park Member LLC appeared to have a valid claim, was probably likely to succeed, and had grounds for attachment because HNA Group was a foreign corporation not qualified to do business in New York. The order secured $185,412,763.60 and covered HNA Group’s property and debts described in the order.
The order prohibited transfers or other actions affecting the value of the attached property until further court order, subject to the stated dollar limit. It also required HNA Group to serve a garnishee statement within five days. Judge Koeltl granted the application for an order of attachment.
The detailed version
- 245 Park Member LLC v. HNA Group Company Limited · No. 1:22-cv-05136
- John Koeltl
- July 25, 2022
Background
245 Park Member LLC petitioned to confirm a final arbitration award and obtain a money judgment against HNA Group (International) Company Limited. It also sought a prejudgment attachment under Article 62 of the New York Civil Practice Law and Rules. The court’s order states that the arbitration award was issued by a JAMS arbitrator after HNA Group failed to pay under an absolute, unconditional, and irrevocable guaranty.
Court’s Findings
Based on the submitted materials, the court found that 245 Park Member LLC appeared to have a valid and legally recognizable claim under the Federal Arbitration Act. The court also found that 245 Park Member LLC was probably likely to succeed on the claim. It identified a ground for attachment under New York Civil Practice Law and Rules section 6201(1): HNA Group was a foreign corporation not qualified to do business in New York. The order also states that HNA Group had no counterclaims for damages against 245 Park Member LLC.
Order
The court granted 245 Park Member LLC’s application for an order of attachment. The attachment was set at $185,412,763.60 and was to remain effective, unless earlier vacated, through the entry of an execution or turnover order after judgment for 245 Park Member LLC.
The order attached HNA Group’s property and debts described in the order, including certain present or future debts and tangible or intangible property. It directed the sheriff to attach other property evidenced by written instruments and located in New York before final judgment. The order prohibited HNA Group, its agents, employees, attorneys, and others with notice from selling, assigning, transferring, paying over, disposing of, or otherwise affecting the value of the covered property or debts, except that property could not be restrained beyond the amount needed to secure $185,412,763.60.
The order required HNA Group to serve a garnishee statement within five days after service of the attachment order. It also fixed an undertaking by 245 Park Member LLC, although the amount is not legible in the provided text. Judge John G. Koeltl entered the order.
Read the full 4-page opinion on CourtListener, the free public archive maintained by the Free Law Project.