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Verizon New England Inc. v. IDT Domestic Telecom, Inc.
Citations: 98 A.D.3d 838; 950 N.Y.S.2d 375
Court: Appellate Division of the Supreme Court of the State of New York; September 4, 2012; New York; State Appellate Court
The Supreme Court of New York County upheld a judgment dismissing Verizon New England Inc.'s petition to compel IDT Domestic Telecom, Inc. to turn over payments made to Global Naps Networks, Inc. after April 2, 2009. Verizon, as a judgment creditor against Global (with a Massachusetts judgment of $57,716,714 domesticated in New York), sought to enforce a restraining notice against IDT regarding alleged improper payments totaling $992,000. The court found that IDT's payments to Global did not constitute debt or property under CPLR 5201, as IDT had an at-will, month-to-month relationship with Global without a written contract, allowing either party to terminate without notice. The ruling referenced a prior case (Verizon New England Inc. v. Transcom Enhanced Servs. Inc.) where a similar prepayment arrangement was deemed not attachable property due to the lack of any enforceable rights or obligations. The court concluded that Global had no right to payment from IDT until it provided services, and thus no attachable debt existed at the time the restraining notice was served. The judgment affirmed that Verizon's arguments regarding the nature of IDT's obligations were insufficient to establish a claim for enforcement of the restraining notice.