On February 18, 2026, Justice Borrok of the New York County Commercial Division issued a decision in Waam Yieldco LLC v. Frank, 2026 NY Slip Op. 30608(U), holding that an LLC ownership interest could be the subject of a turnover order, explaining:
Pursuant to CPLR Article 52, a money judgment may be enforced against any property which could be assigned or transferred or any debt, which is past due or which is yet to become due, certainly or upon demand of the judgment debtor. § 5225 permits a creditor to seek an order directing the payment or delivery of money or property the debtor has an interest in, including (a) property in possession of the debtor and (b) property in possession of a third party:
Upon motion of the judgment creditor, upon notice to the judgment debtor, where it is shown that the judgment debtor is in possession of or custody of money of other personal property in which it has an interest, the court shall order that the judgment debtor pay the money or so much of it as it as is sufficient to satisfy the judgment to the judgment creditor and, if the amount to be so paid is insufficient to satisfy the judgment, to deliver any other personal property, or so much of it as is of sufficient value to satisfy the judgment, to a designated sheriff.
New York courts have recognized that LLC membership interests are personal property for the purposes of CPLR § 5225. By statute, courts may deviate from the delivery procedures outlined in CPLR § 5225(a), and instead may order any person to execute and deliver any document necessary to effect payment or delivery. Pursuant to CPLR § 5240, a court may at any time, on its own initiative or the motion of any interested person, and upon such notice as it may require, make an order denying, limiting, conditioning, regulating, extending or modifying the use of any enforcement procedure.
Judgment Debtor Frank is the owner of 100% of the issued and outstanding membership interests in Judgment Debtor GP LLC. Pursuant to CPLR § 5225(a), his membership interests are subject to turnover to the sheriff. However, the Judgment Creditor is simply not correct that they are entitled to direct turnover based on their argument that they are experienced and well positioned to take over the membership interests or because the value of the interests are uncertain.
(Internal quotations and citations omitted).