5239 - Proceeding to determine adverse claims.

§   5239.  Proceeding  to  determine  adverse  claims.  Prior  to  the  application of property  or  debt  by  a  sheriff  or  receiver  to  the  satisfaction of a judgment, any interested person may commence a special  proceeding  against  the  judgment  creditor or other person with whom a  dispute exists to determine rights in the property or debt.  Service  of  process  in  such  a  proceeding shall be made by service of a notice of  petition upon the respondent, the sheriff or receiver,  and  such  other  person  as  the court directs, in the same manner as a notice of motion.  The proceeding may be commenced in the county  where  the  property  was  levied  upon,  or  in  a court or county specified in subdivision (a) of  section 5221. The court may vacate the  execution  or  order,  void  the  levy,  direct  the  disposition  of the property or debt, or direct that  damages be awarded. Where there appear to be disputed questions of fact,  the court shall order a separate trial, indicating the person who  shall  have  possession of the property pending a decision and the undertaking,  if any, which such person shall give. If the court determines  that  any  claim asserted was fraudulent, it may require the claimant to pay to any  party  adversely  affected  thereby  the reasonable expenses incurred by  such party in the proceeding, including reasonable attorneys' fees,  and  any  other damages suffered by reason of the claim. The court may permit  any interested person to intervene in the proceeding.