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Litigation: The flaws of the Uniform Asset-Freezing Orders Act

The bill is legislative overkill that creates onerous burdens

In 2012, the National Conference of Commissioners on Uniform State Laws (NCCUSL) developed the Uniform Asset-Freezing Orders Act (UAFOA). An asset-freezing order freezes the assets of a person or entity who is a defendant in a lawsuit so long as those assets are not exempt from execution under state law. The NCCUSL argues that the UAFOA “creates a uniform process for the issuance of asset freezing orders, which are in personam orders freezing the assets of a defendant in order to prevent a party from dissipating assets prior to judgment.” However, the UAFOA contains a number of onerous provisions that create unfair burdens for parties who have not been found liable for anything.

The NCCUSL argues that states should adopt the UAFOA because it

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Jim Steele

Jim Steele is a member at Carr Maloney. He counsels insurers on complex coverage matters and litigates insurance coverage disputes. He also defends clients in...

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