N.C. Court of Appeals: Songwooyarn Trading Company v. Sox Eleven- Restriction of Transfer of Property Pending Determination of Exemptions

Summary: Songwooyarn Trading Company (STC) obtained a judgment against Defendant Ahn, among others.  Ahn filed a Motion to Claim Exempt Property, to which STC objected, specifically contending that Ahn had failed to list all non-exempt property, had undervalued property, and attempted to exempt property beyond that allowed by North Carolina law.  The trial court held that Ahn had failed to comply with the statutory requirements for claiming exempt property, but allowed Ahn the opportunity to refile his claimed exemptions.  STC again objected and subpoenaed documents from several banks.  Ahn sought to quash those subpoenas, but the trial court ordered production of documents related to accounts held by Ahn both individually and with his wife, but not as to accounts held solely by his wife.  The trial court additionally prohibited Ahn from disposing, transferring or removing assets located within North Carolina, until such assets were found to be exempt. Ahn appealed, among other jurisdictional matters, the order restricting disposition of assets, specifically as to property owned as tenants by the entireties.  The Court of Appeals, however, held that it was squarely within the authority of the trial court under N.C.G.S. § 1-358 to restrict such transfers. For a copy of the opinion, please see: Songwooyarn Trading Company v. Sox Eleven- Restriction of Transfer of Property Pending Determination of Exemptions.pdf