Legal Definitions - process by foreign attachment

Process by Foreign Attachment is a legal procedure that allows a creditor to seize a debtor's property or funds *before* a final judgment is reached in a lawsuit. This process is typically used when the debtor is not a resident of the jurisdiction where the lawsuit is filed (meaning they are "foreign" to that jurisdiction), or when their assets are located within that jurisdiction but the debtor themselves resides elsewhere. The primary purpose is to secure the debtor's assets, ensuring there will be something available to satisfy the debt if the creditor ultimately wins their case. It acts as a pre-judgment remedy to prevent the debtor from moving or hiding assets.

• Example 1: International Debtor with Local Bank Account

  Imagine a small marketing agency in New York that provides services to a client based in London. The London client fails to pay a substantial invoice. The New York agency discovers that the London client maintains a bank account with a branch of an international bank located in New York City.

  The New York agency could initiate a process by foreign attachment to freeze the funds in the London client's New York bank account. This action prevents the client from withdrawing the money and ensures that if the New York agency wins its lawsuit, there will be assets available in New York to satisfy the judgment.

• Example 2: Non-Resident Property Owner

  Consider a contractor in Florida who completes extensive renovation work on a vacation home owned by an individual who permanently resides in Canada. The Canadian homeowner disputes the final invoice and refuses to pay.

  The Florida contractor could use a process by foreign attachment to place a lien on the Canadian homeowner's vacation property in Florida. This legal action secures the property, making it difficult for the owner to sell it without first settling the debt, thereby providing the contractor with a means to recover the owed payment if they prevail in court.

• Example 3: Goods in Transit or Storage

  A manufacturing company in Germany ships a large consignment of specialized machinery to a buyer in Brazil. The Brazilian buyer defaults on payment while the machinery is temporarily stored in a bonded warehouse in a port city in the United States, awaiting onward shipment. The German manufacturer decides to sue the Brazilian buyer in a U.S. court.

  The German manufacturer could initiate a process by foreign attachment in the U.S. court to seize the machinery held in the U.S. warehouse. This action would prevent the machinery from being moved or delivered to the Brazilian buyer, securing the assets within the U.S. jurisdiction to potentially satisfy a judgment against the Brazilian company.