Strategic Asset Protection for Creditors Before Judgment Is Entered
At Neubert, Pepe & Monteith, P.C., we assist lenders, landlords, and other creditors in obtaining Prejudgment Remedy (PJR) attachments under Connecticut law. A PJR is a powerful statutory tool that allows a creditor to encumber a debtor’s assets, such as bank accounts, real estate, equipment, and other business property, prior to obtaining a final judgment.
The objective is clear and critical: to prevent the transfer, concealment, or dissipation of assets during the pendency of litigation, thereby ensuring that a favorable judgment results in an actual, enforceable recovery.
Our attorneys have substantial experience navigating Connecticut’s PJR statutes and procedural requirements. When strategically pursued, a PJR can significantly enhance a creditor’s leverage, increase the likelihood of early resolution, and safeguard recovery prospects from the outset of litigation.
Strategic Benefits of Pursuing a Prejudgment Attachment
Securing a prejudgment remedy offers creditors several tactical and practical benefits, including:
-
Preservation of Debtor Assets – Prevents the transfer or concealment of assets during litigation, preserving the creditor’s ability to collect.
-
Priority in Bankruptcy and Collections – Establishes a secured position that may take priority over other creditors and enhances the creditor’s standing in any subsequent bankruptcy.
-
Increased Settlement Leverage – Exerts immediate financial pressure on the debtor, often prompting early resolution and reducing litigation duration and cost.
-
Early Judicial Scrutiny – Invites the court to evaluate the claim early, testing legal theories and strengthening the creditor’s case ahead of trial.
-
Asset Transparency – Forces debtors to disclose financial assets and bank accounts, often revealing attachable property not otherwise known.
-
Expedited Resolution – Brings urgency to litigation, prompting debtor engagement, narrowing disputed issues, and often resulting in more efficient case outcomes.
-
Understanding Connecticut’s Prejudgment Remedy Framework – Connecticut law provides three distinct statutory pathways for creditors to obtain prejudgment relief. Each is suited to different factual circumstances and levels of urgency:
Understanding Connecticut’s Prejudgment Remedy Framework
PJR With Notice and Hearing
Conn. Gen. Stat. § 52-278d
In most cases, creditors initiate a prejudgment remedy by filing an application with the court and serving notice on the debtor. A hearing is then scheduled, at which both parties may present evidence. The court evaluates whether the creditor has shown probable cause to believe that judgment will be entered in their favor.
Example: Our firm represented a regional lender in an action to recover on a defaulted business loan. Simultaneously with the filing of the complaint, we submitted an application for a prejudgment remedy, supported by a signed promissory note, a detailed payment history, and an affidavit attesting to the borrower’s default and outstanding balance. At the court hearing, the borrower did not dispute the debt but raised claims of financial hardship. The court found probable cause and granted our client’s request for a PJR, authorizing the attachment of the borrower’s commercial printing equipment. This action preserved valuable assets during the pendency of litigation and positioned our client to secure a meaningful recovery.
PJR Without Notice (Ex Parte Relief)
Conn. Gen. Stat. § 52-278e
When providing advance notice would likely result in the concealment, transfer, or dissipation of assets, a creditor may apply for an ex parte prejudgment remedy. The creditor must still meet the probable cause standard and demonstrate why immediate relief is necessary, but the debtor is not notified before the attachment is issued.
Example: Our firm represented a commercial landlord in an action to recover substantial unpaid rent from a tenant operating retail space in Connecticut. During pre-litigation investigation, we learned the tenant was preparing to relocate its business operations out of state. Concerned that advance notice would lead to the dissipation of assets, we filed an ex parte application for a prejudgment remedy pursuant to Conn. Gen. Stat. § 52-278e. The application was supported by a sworn affidavit from the landlord, lease documentation, and a payment ledger reflecting the outstanding balance. The court found probable cause and, without prior notice to the tenant, granted our request for attachment of the tenant’s bank account, securing funds and protecting the landlord’s ability to collect on any future judgment.
PJR Without Application, Notice, or Hearing
Conn. Gen. Stat. § 52-278f
Connecticut permits creditors to obtain prejudgment attachments without a court hearing, application, or notice if the debtor has contractually waived those rights in a commercial agreement. These waivers are commonly included in loan documents, security agreements, and commercial contracts, enabling immediate action upon default.
Example: Our firm represented a wholesale vendor in a collection matter arising from a commercial supply agreement that included a contractual waiver of notice and hearing for prejudgment remedy relief. After the retail buyer failed to remit payment on a substantial invoice, we promptly issued a writ of attachment to a Connecticut state marshal pursuant to Conn. Gen. Stat. § 52-278f. Relying on the enforceable waiver, we secured a prejudgment attachment on the retailer’s on-site inventory without filing a court application or providing advance notice. This immediate action preserved critical assets and positioned our client for an efficient and effective recovery at the outset of litigation.
Tactical, Timely, and Results-Focused Execution
Our firm is known for delivering precise, timely, and effective prejudgment remedy litigation. We assess the facts, determine whether an ex parte application, formal hearing, or contractual waiver is appropriate, and act swiftly to identify and secure attachable assets. Our team ensures full compliance with all procedural requirements, minimizing the risk of challenge or dissolution.
When paired with litigation, a PJR serves as a force multiplier. It transforms a pending lawsuit into immediate leverage, deters evasive debtor behavior, prompts early settlement discussions, and maximizes enforceability of any eventual judgment.